The Revolution Group Blog

The internet has introduced new ways of doing business for many industries and manufacturing is no exception. Gone are the days of bulky servers and cumbersome ERP packages. It is now possible to manage your entire operation via a web browser, smart phone, or tablet. Cloud-based ERP solutions are one of the fastest growing segments within the IT industry. In manufacturing, we see a notable shift from on-premise ERP to cloud-based ERP. These new solutions come with a wealth of options, features, and benefits.

Is your manufacturing operation using Standard Cost or Actual Cost to value production costs? Are you wondering what the benefits would be if you switched to a Standard Cost valuation of the production of your products? In this blog post, I’ve listed the advantages and disadvantages of using Standard Cost to help with your analysis. Many manufacturing entities utilize the Standard Cost system instead of the Actual Cost system to reduce the tracking requirements for purchases, labor, and overhead.