When ever we change our standard cost (typically downwards), QB expenses future sales at the average cost based on the quantity purchase at the old and new prices. Is there a way to have QB show the expense at the new standard cost (i.e. revalue all inventory at the new standard cost with the difference in inventory valuation being charged to a standards revisions account)? Thanks, Bob.
Cost accounting - current standard cost verses average standard cost
Aug 06, 2009
3 Replies
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No, you have to move up the software food chain.
Thanks for the confirmation. It seems like pretty low hanging fruit to offer users the ability to revalue inventory for changes in standard costs. Regards, Bob.
Thanks for the confirmation. It seems like pretty low hanging fruit to offer users the ability to revalue inventory for changes in standard costs. Regards, Bob.
The height of the fruit is in the eyes of the beholder. Personally I believe accounting for the cost of goods sold based on standard cost belongs up in the canopy. The inclusion of such a feature is not appropriate for an entry level accounting system. Inclusion would simply add bloat to the product and have 99.99% of QB users scratching their heads saying WTF.
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