Standard Costing: Why there is a Production Quantity Variance Account on the Assembly Build's GL Impact

Description of the Problem:

Standard Quantity is equal to Actual Quantity Used on an Assembly Build but a Production Quantity Variance was recognized.

Cause:

The Cost Category on the Component Item Record is different from the Cost Category used in setting up Planned Standard Cost, Standard Cost Roll Up and Inventory Revaluation.

To avoid getting unexpected Production Quantity Variances, the Cost Category on the Item Record should be consistently used when setting up Standard Costs.