Calculation of Variances on the Basis of Modified Standard Cost Estimate


To improve your cost management of period costs, in Release 4.0A you can calculate the production variances of the period. To do this, you run a modified standard cost estimate each month and calculate the variances using the target costs calculated with the modified standard cost estimate and the actual lot size of the period.

The target costs calculated for the period in this way are compared with the control costs (in this case the net actual costs of the period).

Change system parameters in customizing

The standard system enables the calculation of periodic variances on the basis of the modified standard cost estimate with target cost version 3.

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