In actual COSTING run there is a process of single level price determination and MULTI level price determination. The production price difference variances are COLLECTED on the material ledger for each of the finished goods and semi finished goods.

During single level price determination the price difference collected on a single finished product is ALLOCATED to consumption. This allocation to the consumption is not individually allocated to the good issues.

In multi level price determination the price difference is allocated to individual goods issue. The price differences are PASSED on to the next level of consumption. The system calculates a weighted average price for the finished goods and semi finished goods. This weighted average price is called as the periodic unit price.

In actual costing run there is a process of single level price determination and multi level price determination. The production price difference variances are collected on the material ledger for each of the finished goods and semi finished goods.

During single level price determination the price difference collected on a single finished product is allocated to consumption. This allocation to the consumption is not individually allocated to the good issues.

In multi level price determination the price difference is allocated to individual goods issue. The price differences are passed on to the next level of consumption. The system calculates a weighted average price for the finished goods and semi finished goods. This weighted average price is called as the periodic unit price.