Def - Cost - Standard

The Standard Cost reflects the pre-determined "target" value for the inventory. For each individual LotSK, this is calculated as the [Standard Base Cost Rate] + sum of all the [Standard Cost Layer Rates]. 

Standard Costs are typically managed in companies where items have a planned or target cost amount and any variances to actual costs are reflected as expenses on the P&L and not in the Inventory Balance Sheet accounts.