Item Assembly
Advantages of Item Assembly
- Under the Average Cost method, you can change the unit cost of components on the fly.
- Added flexibility. You don't have to decide in advance which inventory items you want to use to build a particular item. Item assembly is useful for special orders.
If your company frequently builds inventory items out of other inventory items and you want to track the associated costs, building them from a Bill of Materials will provide more accurate reporting and makes recording the build much faster.