STANDARD COSTS
Standard Costs refers to a predetermined cost of goods used for budgeting and performance evaluation. This cost helps businesses set pricing, control expenses, and assess profit margins by comparing actual costs to these standard values.
- STEP 1: Accessing Back Office: You go into the Back Office and login.
- STEP 2: Go to Items/Inventory and locate the Standard Costs.
- STEP 3: Search for the item you want to see to find out the standard material cost per unit.
- STEP 4: Type the Standard Material Cost Per Unit which means refers to the pre-determined cost assigned to each unit of raw material used in the production of a product.
- STEP 5: Click the Update button if there are any changes or additions made to the description.
