Hi Sahar,
Inventory closing is a process to arrive at the actual COGS of issued item quantity. This actual COGS make sure accurate profit is calculated and reported.
Standard cost features:
•No closing (no settlements)
•No marking
•Has Variances
Weighted Average cost features:
•Allows Marking and hence actual cost transfer
•Closing reflects true profitability
•Needs closing (Issues and Receipts undergo settlement)
Regards
Rahul Mohta
Independent Advisor for Microsoft Dynamics AX