Information about routing operations must be prepared before you maintain standard costs in a manufacturing environment with routings. For example, the cost categories that are assigned to routing operations provide the basis for assigning hourly costs or piece rate costs. Cost groups that are assigned to cost categories provide the basis for segmenting calculated costs of manufactured items and provide the basis for calculating manufacturing overheads by using indirect cost calculation formulas that are embedded in the costing sheet setup. The costing sheet setup also defines the format for displaying information on a costing sheet.

A manufacturing environment without routings does not require these additional preparation steps.

See Also