Average Cost vs Standard Cost for Sales Reporting
We currently use Average Cost for Inventory and Sales.
Our problem is that the Average Cost isn't the true cost - it isn't capturing all of the costs in the item. This artificially increases the recorded Gross Profit in Sales reports because the Cost is lower than the true Cost.
To overcome this we are thinking of moving to Standard Cost. This will allow us to include a factor for additional costs we need to recover (such as Port Charges for imports)
The question - how is the Gross Profit on sales reported for the Salesperson?
Does it reflect the Average cost as before, or the Standard cost?
