The calculated amount of an item's amortized constant costs is termed miscellaneous charges. A manufactured item's constant costs reflect the operation setup times and the components with a constant quantity or a constant scrap amount. For more information, see About amortizing constant costs for a manufactured item.
The calculated amount of item's miscellaneous charges is sometimes displayed as part of the item's unit costs and sometimes displayed as separate fields (and not included in the item's unit costs). When the calculated amount is displayed as separate fields, one field displays the total miscellaneous charges amount and the second field displays the costing lot size (termed the price unit) that was used to amortize the amount. The form, for example, displays the miscellaneous charges as two separate fields, whereas the form displays the item's total cost per unit, with amortized costs included in the unit cost.
Miscellaneous charges for a manufactured item are always included in the item's unit cost for standard cost purposes. They can optionally be included for planned cost purposes. A policy within the costing version enforces the decision to include miscellaneous charges in the cost of a manufactured item.
When you activate an item's cost record, it will update the miscellaneous charges for the item's base cost information, as displayed on the form. The miscellaneous charges are displayed as two separate fields, and they are not displayed as part of the item's unit cost. Each activation updates the item's base cost information, even though the activation reflects different sites. Hence, the base cost information should be viewed as reference information.