When you produce goods you usually want to analyze the costs. Usually you will have a budgeted costs or estimated costs and then actual costs when you finish the production. It’s helpful to them look at variances to see why something costs less/more than you expected. Costs could vary based on materials, labor, direct or indirect costs and overhead applied to the production. In this overview let’s first have a look at the basic process of how you can generate an estimate cost and see the difference between actual after you finished the production.
Here is a quick overview.
AX2012 R3 CU11