Cost accounting - current standard cost verses average standard cost

Posted by bobs on August 6, 2009, 5:34 pm

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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.

Posted by Haskel LaPort on August 7, 2009, 12:19 pm

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> 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.

No, you have to move up the software food chain.

Posted by bobs on August 7, 2009, 6:53 pm

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> 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.

> 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.

Posted by Haskel LaPort on August 8, 2009, 4:21 am

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> 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.

> 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.

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.