What happens in an actual costing run?
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What happens in an actual costing run?
In actual costing run there is a process of single level price determination
and multi level price determination. The production price difference
variances are collected on the material ledger for each of the finished
goods and semi finished goods.
During single level price determination the price difference collected on a
single finished product is allocated to consumption. This allocation to the
consumption is not individually allocated to the good issues.
In multi level price determination the price difference is allocated to
individual goods issue. The price differences are passed on to the next
level of consumption.
The system calculates a weighted average price for the finished goods
and semi finished goods. This weighted average price is called as the
periodic unit price
and multi level price determination. The production price difference
variances are collected on the material ledger for each of the finished
goods and semi finished goods.
During single level price determination the price difference collected on a
single finished product is allocated to consumption. This allocation to the
consumption is not individually allocated to the good issues.
In multi level price determination the price difference is allocated to
individual goods issue. The price differences are passed on to the next
level of consumption.
The system calculates a weighted average price for the finished goods
and semi finished goods. This weighted average price is called as the
periodic unit price
michael_fico- Posts : 163
Join date : 2012-03-23
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