What's the difference between standard cost rate and effective cost rate?

Standard cost rate is derived from the cost rate schedules.

These cost rate schedules are:

• Specified on the planning options if you're using planning rates.

• Derived using actual cost rate derivation logic if you're using actual rates.

Effective cost rate is applied to quantity for calculating budget or forecast raw cost. It equals the standard cost rate unless you enter a revised effective rate or raw cost amount.