Costing Methodologies
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Costing Methodologies
This page discusses various costing methodologies applicable to accounting schemas in Adempiere
Standard Costing
FIFO
LIFO
Last In First Out is prohibited from use under IAS2.IN13
Last Invoice
Average Invoice
Last PO
Average PO
Retail Method
The retail method is a costing methodology often employed in the retail industry to measure large numbers of rapidly changing items with similar margins for which it is impractical to use other costing methods.
The cost of the inventory is determined by reducing the sales value of the inventory by the appropriate gross margin percentage. The percentage must include inventory that has been marked down below its original selling price. An average percentage per department is often used.
