Standard costs

The standard costs are the costs that serve as a reference for the whole budget period. They are used to improve inventory transactions. They are therefore normally determined from data and budget costs. They correspond to a choice that has to be made amongst all the elements of cost. The decision maker can include the indirect costs, as well as the direct costs, of the cost center and the general costs in the standard costs.

The standard cost of the purchased items

The standard cost of the purchased items is equal to the standard purchase price that has been entered in the Item window (possibly multiplied by the purchasing overhead rate).