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Standard Costing

Standard Costing

Standard Costing defines the expected or standard costs to be incurred to produce or purchase items. An effective standard costing application should allow you to quickly calculate costs associated with purchase and production activities.  It should also present these costs in a variety of formats, with sufficient detail to effectively analyze the cost elements.  Costs should be available for immediate comparison to actual costs, with variances to standard presented at summary and detail levels.

Fitrix Standard Costing is an application in the Item Management family. It defines the expected or standard costs to be incurred to produce or purchase items. It uses cost elements defined in the Bill of Material and Standard Routing applications to compute standard costs per unit of an item. These costs can be tracked against actual costs to produce or purchase and the variances can then be analyzed. 

In addition to the current standard cost, Fitrix supports the definition of an unlimited number of other standard costs for items. This means you can store multiple historical standards, multiple future standards, and unlimited simulation costs.  Any standard may be compared to any other standard via inquiries and reports and variances are analyzed at multiple levels of detail.

Features/Function Highlights

  • Modular Integration – direct integration with Bill of Material, Standard Routing, Actual Costing, Production Order Processing, and Purchasing
  • Current standard cost stored at the item level. When used with Bill of Material and Standard Routing costs can be “rolled up” to compute a current standard cost
  • An unlimited number of other costs ( historical, future, simulated) can be established for each item for variance analysis
  • Flexible cost roll up and user defined control over automatic rollup
  • Allow manual entry of cost elements with no roll up
  • Costs can be used as templates that can then be transferred to create other standard costs  (i.e. – current costs can be used to create a new year frozen standard,  simulated costs can be used to create a new current standard)
  • Routing steps are costed based on setup hours, run hours per unit or machine hours per unit
  • Labor and overhead costs can be optionally be calculated based on standard work center labor and overhead rates
  • Actual costs can be compared to either current or other standard costs
  • Standard unit cost will be the default used on purchase orders entered manually, released from MRP, and released from production order entry unless the vendor is found in the approved vendor catalog

 

Inquiries

  • Current cost details
  • Comparison of multiple cost types: Summary, Component Detail, Routing Detail

Reports

  • Current cost details
  • Comparison of multiple cost types by: Summary, Component Detail, Routing Detail
  • Inventory valuation at standard cost type