Costing Type - Moving Average

Finance and Operations/AX User Forum
1

Hi All,

What is the main difference between moving average and Standard cost. Can any one help in this regard.

Thanks,

Nanjappa

2

The main difference is Standard cost model is a pre-determined/estimated pricing where as Moving average is a calculated cost based on the average principle. The difference of standard cost vs actual cost will be posted into variance accounts where as the difference of inventory issues and purchase costs in case of Moving average principle is capitalized and expensed.

Check the following links for more information:

http://technet.microsoft.com/en-us/library/gg231168.aspx

http://technet.microsoft.com/en-us/library/hh597235.aspx