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Suggested answer

Charge items effect on costing method

Posted on by 40

Hi,

I would like to find out what effect does charge items have on the following costing methods in BC:

1. FIFO

2. Average cost

  • Suggested answer
    Dallefeld Profile Picture
    Dallefeld 11,425 User Group Leader on at
    RE: Charge items effect on costing method

    Except for Standard Cost, charge items, add to the cost of inventory. The cost are attached to receipt transactions and therefore for FIFO, they become part of the cost for that layer of inventory and for Average, they affect the weighted average. These costs will function as any other and follow the cost through inventory to COGS.

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