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Standard Cost Always for Manufacturing?

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Posted on by JE-20081519-0

3,549

Hi:

Is it a requirement to have Standard Cost, as the inventory valuation method in a Business Central manufacturing (Production) environment?

Thanks!

John

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Dynamics 365 Business Central

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Vahid Ghafarpour 12,228 Super User 2026 Season 1 on at

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Depend on your business needs and preferences, you can use your method. Dynamics 365 Business Central supports multiple inventory valuation methods, including FIFO (First In, First Out), Average Cost, and Standard Cost.

https://erpsoftwareblog.com/2025/01/mastering-manufacturing-with-business-central-costing-and-general-ledger-insights-in-manufacturing/

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Khushbu Rajvi. 22,132 Super User 2026 Season 1 on at

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Standard Cost is not a mandatory requirement for manufacturing. While Standard Cost is the most commonly used method in manufacturing environments due to its ability to handle cost variances efficiently, you can choose other valuation methods (FIFO, LIFO, Average, or Specific) if they align better with your business processes.

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-about-calculating-standard-cost

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