Test1 Test2 Test3 Test4 If nk If nk

finGood M1,M2,M3,IO Ourchased M1,M2,M3,IO Purchased item M1,M2,M3,IO Purchased item M1,M2,M3,IO

the company makes same (or similar) things then you use standard costing. Thi of a company making computers, humidifiers, spoons etc. the products or activities are not always the same, you use avg. costing. Thi of a company making oil rigs or performing repair jobs.

Standard costing is opted If the cost of raw material for manufacturing the fini shed good is going to be consistent for a given period of time say during a fina ncial year and there are not many fluctuations are expected in their cost. in th is scenario, standard costs are established and the actual performance is measur ed agaist those standards by way of variance analysis. If you know that the cost of raw material is fluctuating and there is no consist ency in it, it is suggested to go for average costing method. --------------------------------------------------------------------------http://docs.oracle.com/cd/A60725_05/html/comnls/us/cst/stdavg.htm Req No.6035 Application Object Library