Defining "Cost group" at item level

Dear friends:

Can any one till me what is the purpose of defining “Cost group” at item level , I understand that it is used to include the item attached to the cost category in calculating the cost of the manufactured item , so i think it just for reporting purpose only , is this true?? please help.


No it is not just for reporting purposes.

In addition to the costing sheet breakdown on production orders and price calcualtions it also allows the business to apply indirect costs within the costing sheet to uplift the inventory cost of a manufactured item by fixed or variable overheads.