Update Standard Cost
This form is used to automatically update the standard cost of parent items in the database.
Each item has a Standard Cost field that is entered by the user to keep track of the Total Cost, this includes the purchased materials as well as any overhead.
All items with a BOM can have their standard cost calculated by adding the Standard Cost of all children items to the overhead of the parent.
When the standard cost entered by the user differs from that calculated, one can use this form to automatically update the standard cost to a specific value.
- Product Id This is product identification no. Which is given in Purchase Order form at the time of item entering and It is unique in ERPlite.
- Product Name This field is used to describe the name of the product listed in the database.
- Standard Cost Production or operating cost that is carefully predetermined. A standard cost is a target cost that should be attained. The standard cost is compared with the actual cost in order to measure the performance of a given costing department or operation. Variances, which are the differences between actual costs and standard costs, may indicate inefficiencies that have to be investigated. Corrective action may have to be taken.
- Overhead Cost In business, overhead, overhead cost or overhead expense refers to an ongoing expense of operating a business. The term overhead is usually used to group expenses that are necessary to the continued functioning of the business, but that do not directly generate profits. Typical examples of overhead expenses include rent, utilities, permits to operate a business, business name registration, and commercial liability insurance.
- Current Cost Price of replacing an asset identical to an existing one. It should be of the same condition and age as well as have the same service potential.
- Average Cost Average Cost is equal to total cost divided by the number of goods produced (Quantity-Q).It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q).Average costs may be dependent on the time period considered (increasing production may be expensive or impossible in the short term, for example). Average costs affect the supply curve and are a fundamental component of supply and demand.
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