Introduction

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Production costs involve the analysis of actual costs versus estimated costs for production orders and the analysis of costs for current production activities.

When analyzing production costs, you can complete the following tasks:

  • Calculate the estimated costs for a production order.

  • Calculate a suggested sales price based on estimated production order costs.

  • Analyze actual costs versus estimated costs for a production order.

  • Analyze reported costs for current production orders.

  • Analyze production variances for a completed production order for a standard cost item.

  • Identify sources of production variances.

  • Suggest new standard costs based on historical variances.

  • Analyze variances for specified time periods.

This module describes the core concepts and components to use costing for discrete manufacturing in Microsoft Dynamics 365 Supply Chain Management.