🧮 Understanding Default, Standard, and Average Cost in Rundoo

This doc breaks down the purpose and use cases for each cost type in Rundoo, so you know when (and why) to update them.

🔹 Default Cost (Vendor Cost)

• What it is: The amount you pay your vendor (e.g., Benjamin Moore).
  • You can have Additional Cost for other Vendors here!
• Used for:
  • Orders, when your vendor is selected this is the cost our system will pull from!
  • Serves as the default when new products are created!
• When to update it:
  • When your vendor updates pricing!
  • When you want your purchase orders to reflect the accurate cost!

🔹 Standard Cost (System-Base Cost)

• What it is: A manually input cost used for reporting and Margin base pricing strategy.
• Used for:
  • Margin-based pricing (drives sell prices when using “Price by Margin”)
  • Reporting (if “Standard Cost” is selected in admin > cost management)
• When to update it:
  • When using margin-based pricing and vendor costs change
  • When aligning internal cost tracking across your org

Average Cost (System-calculated)

• What it is: The system-calculated average of your historical costs for a given item.
• Used for:
  • Reporting (if “Average Cost” is selected in admin > cost management)
• When to use it:
  • When you want reporting to reflect real historical costs across time

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