View source for 33. Costing Methods

'''Costing Methods'''

Costing methods are accounting techniques that are used to help understand the value of inputs and outputs in a production process. By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators.


'''Costing Methods- Has the different costing systems within the ERP been explained?'''

There are 4 costing methods:

* Your '''Average Cost''' is the cost of the product averaged by your different supplier costs (if applicable).

* Your '''Landed Cost''' is the total amount including any shipping/freight charges.

* Your '''Manufactured Cost''' is the cost it takes to manufacture your product.

* Your '''Last Cost''' is the most recent cost you bought your product for (it has no other calculations factored into the total amount).