Standard and Average Cost in Inventory Application

Standard Cost and Average Cost in Inventory Maximo.

Standard Cost: 

• User-specified cost, independent of MAXIMO updating.
• Use this field to establish the price at which an inventory item is to be carried. 
• Standard cost often includes an allowance for such things as overhead and/or transportation.
• You can modify the standard cost in Inventory by selecting Standard Cost Adjustment from the Select Action menu.

Average Cost: (Average Purchase Cost)

•     The new average cost is calculated by the formula:   (previous current balance x average cost) + (quantity received x receiving cost) / (new current balance).
•    This is initially set to the standard cost when the record is added to the database.
•     It is automatically updated when an item is received into the storeroom.
•    You can manually modify the average cost using the Adjust Average Cost item from the Select Action menu in the Inventory application.

Note: We can set the default cost for issues and transfers to either Standard Cost or Average Cost in the Organization application (Select Action -> Inventory Options -> Inventory Costs) MAXVARS. DEFISSUECOST

References:
inv_average_cost.html
inv_ic_standard_cost.html
http://www-01.ibm.com/support/docview.wss?uid=swg21296981
http://www-01.ibm.com/support/docview.wss?uid=swg21384733