BC seems to predominantly promote standard cost for manufacturing items as the costing method. This would seem proper where you have highly repetitive manufacturing processes that generate variances and you want to determine variances and inefficiencies in your processes.
However in our case we make 15 to 20 large items per year and the items are not identical. They can be various different sizes but not identical. Therefore it would make more logical sense, I believe, that a costing method like FIFO might be utilised; however there can be some subcontractor elements in the processes during busy periods and because standard cost seems to be the predominant methodology used throughout Business Central, I am wanting to find out any potential problems of using FIFO in the production processes in manufacturing. We already have the purchase items utilising FIFO as the costing method. Now we are exploring whether we should have to produce items using FIFO as well.
We are not particularly concerned about variance analysis and highlighting trends and inefficiencies when it might make more logical sense that a costing method like FIFO would be utilised concerning that only 15 to 20 products are made per year.
Any concerns to be aware about using FIFO in the manufacturing process and also about using subcontractor processes when FIFO is in place? I presume WIP will be fine too as just the actual cost to date.
