Production costs involve the analysis of actual costs versus estimated costs for production orders and the analysis of costs for current production activities. Using analyze production costs, you can:

• Calculate the estimated costs for a production order.

• Calculate a suggested sales price that is based on estimated production order costs.

• Analyze actual costs versus estimated costs for a production order.

• Analyze reported costs for current production orders.

• Analyze production variances for a completed production order for a standard cost item.

• Identify sources of production variances.

• Suggest new standard costs that are based on historical variances.

• Analyze variances for specified time periods.