use of STANDARD COST METHOD

Hi Masters, I learning navision. I completed Inventory costing manual. I understood the total book regarding costing method and remaining. But i could not under stand that Costing method “STANDARD”. I done senerioes regarding all costing methods, Still i could not understand the “Standard costing method”. Please explain about this costing method.At what conditions we will use this method. If it is possible please explain with one suitable example. One more doubt After i put check mark in automatic cost posting, then i run that batch job Post inventory cost to G/L. At which values(that means from which table) it is taking values to post to G/L. Have a nice day thanks and regards

Standard costing is a method where your inventory is valued individually at an agreed price for a fixed period and the pricing variances are tracked through variance accounts. This leads to the cost always being the standard. The time period is usually a year. Traditionally manufacturing businesses account in this manner to analyse margin for a fixed period, where the standard cost is made up of every conceivable element, fixed and variable overhead burden etc.

I would suggest you google standard costing, it is one of the fundamental accounting principles, although I should point out I am in no way an accountant. [:D]