Resources vs. Overheads with Standard Costing
Hello,
We are using Standard Costing with a Process Manufacturing environment. All Work Definitions have a batch size, which is how the Standard Costs are entered, computed and processed.
We use external manufactures to perform our production tasks, so yielded outputs can vary from batch to batch (from Work Order to Work Order), however, we pay the same price to the external manufactures regardless of how different the actual output is from the requested batch size (we do not use Outside Processing or Contract Manufacturing).
The client would like to have all Work Order Resources to have fixed amounts based the planned batch size, even if the actual yielded output may vary from Work Order to Work Order, and not to have