Displaying, Defining and modifying MBC

The simulated purchase prices enable you to experiment with different purchase prices when calculating standard cost. The items with their new purchase prices are linked to a price-calculation code.

If you calculate the standard cost for an item using the Calculate Standard Cost (ticpr2210m000) session, and for one of the item's components a simulated purchase price is defined, this simulated purchase price is used to calculate the standard cost. Prerequisite for simulation is that the item's price calculation code equals the price calculation code of the simulated purchase price. A report is printed that displays the new and the old prices.