Hello,
Finance guy here.
Currently our raw material and finished goods are both set with S(tandard) instead of moving average.
We are looking to switch Raw Material and Purchased Goods to moving average type given the market volatility and frequent swings in commodity price.
From a production standpoint, our finished goods would be left at standard costs and updated quarterly or potentially monthly ……
Where would the variance fall out on the goods consumed as the moving average would be automated yet the raw standards in the finished goods BOM could be different? Is this like a consumption price variance?
Also, is there a way to see what finished goods have price differences compared to standard each month?
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