I am having a problem with standard costing regarding volume discounts.
I can buy 10 pieces of Part A for $10.00 each. But I can also buy 1000 pieces of Part for $1.00 each.
We are an contract manufacturer and each order we receive varies in size.
How do I set my Standard cost for the item so that I don't incur huge variances?
Also how does Navision value inventory? If it uses the Standard cost this will greatly affect my inventory value.
We are just in the process of implementing Navision, so I am just learning.