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ReportHi All,
Can you illustarate the difference between planned cost and standard cost by taking one example.
thanks
Pham
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Hi All,
Can you illustarate the difference between planned cost and standard cost by taking one example.
thanks
Pham
Hi ,
Our company in the process master data. Can we run a planned cost for review stand cost ? We not yet make any order in production. It is a reason we want used planned cost. If the planned cost is correct. We will active the cost of stand cost.
thanks
Hi phongqn2000,
The planned cost is the estimated cost based on the previous actual operation.
The standard cost is based on the expected cost under normal and efficient conditions, and it is not based on some data of actual operation.
Generally speaking, it can be understood that planned cost is the product of practice, while standard cost is the fruit of theory.
Hi Pham
There might be different definitions but to standard cost is the cost of an item where you determine the standard cost before you produce the item (item cost, labor and other direct related cost e.g. machine hour cost).
Planned cost use expected costs for the different components in a production but the final cost of producing the item might end up differently, compared to standard cost where you get the expected cost for the item. You might have some standard deviations due to use of more material, less hour and similar but these cost will be posted as standard deviations and not as part of you finish item.
Kind regards
Sten
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