Which steps need to be completed to establish standard costs for a make item?

To establish standard costs for a make item in Oracle Cloud Cost Management, all the steps mentioned are necessary to ensure a comprehensive and accurate cost structure.

Starting with the cost roll-up process, this step involves collecting and calculating all relevant cost components associated with the production of the item. This encompasses direct materials, labor costs, and overheads to arrive at a complete picture of the manufacturing expenses.

Once the cost roll-up is completed, the next step is to publish these costs. Publishing ensures that the calculated standard costs are made available for use in various applications and can be referenced throughout the organization. This is crucial, as it provides stakeholders with the necessary pricing information for decision-making, inventory valuation, and financial reporting.

Finally, adding standard costs to a cost scenario involves integrating the published costs within a specific scenario that can reflect different business conditions or operational strategies. This enables organizations to simulate various financial analyses and understand the impact of different cost structures on profitability.

Together, these steps form a cohesive process that allows businesses to accurately set and manage standard costs for their made items, which is essential for effective cost control and financial assessment.