Inventory item - Standard cost

Question

Greetings,&nbsp;When creating a new item, under Buying Details tab, there is a text box called Standard Cost.&nbsp;I am puzzled why Myob advises dollar value entered under Standard Cost must include tax. So for example, my cost price is $2.50 ex tax for a widget. So it means I must enter $2.75 incl tax.&nbsp;I have selected GST (goods &amp; services tax) from the drop down box called Tax Code When Bought.&nbsp;Hope to get some clarification, thanks.&nbsp;Regards.&nbsp;&nbsp;

ianchait · Accepted Answer

Hi&nbsp;Gerald1&nbsp;&nbsp;I wouldn't advise using Standard Costs. It doesn't give an accurate Gross Margin by product, and there isn't a varaince account for the difference between actual and standard cost. I have one very dissatisfied client at the moment.&nbsp;

gerald1 · Answer

Thanks for your reply and suggestion Ian. Since it is optional, I have taken your suggestion and decided not to use it.

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Inventory item - Standard cost

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