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FAQ

Frequently asked questions about Production Costing.

General​

What is the difference between standard costing and actual costing?​

Standard costing uses pre-defined expected costs for materials, labor, and overhead. Variances between standard and actual are tracked separately.

Actual costing records the real costs incurred during production without any pre-set estimates. It is more accurate but requires more data collection.

Can I use multiple costing methods for different products?​

Yes. You can assign different costing methods per product category or item group, allowing flexibility across your product range.

How often should I update standard costs?​

It is recommended to review and update standard costs at least once per year, or whenever there are significant changes in material prices, labor rates, or production processes.

Allocation​

What happens if I choose the wrong allocation base?​

Using an inappropriate allocation base can distort product costs — over-costing some products and under-costing others. Review your allocation bases periodically to ensure they still reflect actual cost drivers.

What is over/under absorption?​

  • Over-absorption occurs when applied overhead exceeds actual overhead incurred.
  • Under-absorption occurs when applied overhead is less than actual overhead.

Both are adjusted at period end through a closing journal entry.

Reports​

Can I filter reports by date range, product, or cost center?​

Yes. All reports support filtering by date range, product, work order, cost center, and more.

How do I export a report to Excel?​

Open the report, click the Export button in the toolbar, and select Excel (.xlsx) from the format options.

Technical​

Does Production Costing integrate with the General Ledger?​

Yes. All cost postings are automatically reflected in the General Ledger, ensuring financial statements are always in sync with production data.

Is historical cost data preserved when I change costing methods?​

Yes. Changing a costing method applies only to future transactions. Historical records remain unchanged and fully accessible.

Who should I contact for support?​

Reach out to your system administrator or visit the support portal for assistance.