Single Level Vs Multi Level : STD. Costing

Hi For calculating the std. cost for an item, 1. When should Single level be used? 2. When should multi level be used? Pl. give with some example sekar

Oh a “secret” reply The simple answer is whne you are using BOM’s and have BOM’s within BOM’s multiple level calcuates teh costs of the lower BOM’s first bringing them up, whereas teh single level only calcualtes one level down.

Thanks Steven Weaver. can u please give some real time example, for this two. sekar

Hi Well look at Cronus, the bicycle is a top level there are other BOM’s wthin BOM’s for the wheels etc. If you run it multiple level it will drill down to the costs of the components of the wheels, then calcualte the cost of the wheel and then add this to all the other components to calculate the cost of the bicycle. With single level the cost of the wheel will not be re-calcualted, it will be taken as is.