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costing method of finished product

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Posted on by Aspen

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Generally the costing method of finished products uses Standard, but I see the Cronus company uses FIFO for finished products as well. My opinion is that FIFO simplifies the costing in comparison with Standard, which tracks the variances. For companies that don't care about variances, FIFO should works better. What do you think?

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Khushbu Rajvi. 22,130 Super User 2026 Season 1 on at

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FIFO is set for some finished products, but in real-world manufacturing, Standard Cost is usually preferred because companies need cost predictability and variance tracking.

https://community.dynamics.com/forums/thread/details/?threadid=6a3574dc-5568-4b57-9ef8-16ea6d2e1b36

https://community.dynamics.com/forums/thread/details/?threadid=cac7b061-822f-4ca8-9526-35f9d22fc24e

https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-costing-methods

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YUN ZHU 99,086 Super User 2026 Season 1 on at

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This depends on your company's needs. It is not the case that the Cronus company setting FIFO is the best.
For example, in my area, average cost is used more.

Hope this helps.

Thanks.

ZHU

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Teddy Herryanto (Th... 14,302 Super User 2026 Season 1 on at

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There is no need to follow the Cronus setup.

Most of the time, I have seen companies using Standard costs. There are some cases where they decided to choose FIFO or Average.

It depends on the company.

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Gerardo Rentería Ga... 25,555 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Design details costing methods - Business Central | Microsoft Learn

Standard costing Deep Dive in Business Central – Peik's Corner

Average costing Deep Dive in Business Central – Peik's Corner

Dynamics 365 Business Central: Item Costing, part 8

Best Regards
Gerardo

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Valentin Castravet 32,208 Super User 2026 Season 1 on at

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This is more of a question for your accountants than a specific Business Central question. It really depends on what they want to see.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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