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There are two inventory cost valuaction methods surpported in 2BizBox: Weighted Average Cost(WAC) and Standard Cost(Standard). WAC is actual cost, it's always changing when receiving PO or WO. Standard is expected, budgeted cost, you can reset standard cost every month, quarter or year if there is a big difference between actual cost and expected cost.
The actual costs are then compared to the standard costs and any differences are reported as variances. So managers can understand why costs were different from what was planned and take appropriate action to correct the situation. |
