Cost Report and Inventory Accounting Features and Functions

• Records standard costs of material, direct labor, and overhead (total, fixed, variable, and material)


• Uses separate codes for frozen and current standard costs


• Modifiable values can be used in inventory valuation


• Tracks and records the inventory valuation of vendor and customer consignment materials


• Frozen standard costs for inventory valuation


• Purchase price variance booked through receiving and accounts payable


• Audit trail for transaction records


• Tracks the value of stockroom inventory at the item-level, and generates a valuation report


• Tracks the value of WIP, by manufacturing order and generates a valuation report


• Updates inventory valuation with revised standard costs


• Cost system must be linked to A/R billing and shipping transactions for sales and discounts


• Measures performance by comparing average actual cost to frozen standard cost


• Production and partial receipts are used to calculate average cost