TARGET COST REPORT

This is the cost that we should have obtained during the period, the cost must be calculated from the updated purchase prices and the costings. It is considered to be theoretical because it is assumed that the ranges are accurately tracked.

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Theoretical cost report

Just as the cost or actual consumption report represents the actual consumption in a period between two inventories, the cost or theoretical consumption report represents the consumption calculated through the sales mix of a Ceco and the corresponding links with purchase products (direct product or recipes).

The target cost report shows the cost of sales for a period, based on the cost estimates of the recipes defined and recorded in the system, to which the accidental wastage is added to complete the cost and bring it closer to what should be the expected reality.