33. Costing Methods
From TrueERP wiki
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).
