When is it useful to use the price control V or S in Material Master?

  
Do I have to follow the SAP standard setting in the material type for the following material
types: 
- ROH (Raw materials) -> moving average price 
- HALB (Semifinished products) -> standard price 
- FERT (Finished products) -> standard price 
In which case and why is useful to change these standard setting in material type? 
What is difference between standard price and moving average price?  
When and how to use it?

Standard price are used for products that do not fluctuated frequently.  It is usually used for
finished or semi finished products.

Moving average price are used mainly for raw materials that are purchased externally.  The
advantage of using moving average price for your raw materials is that your inventory costs will
always reflect the current market cost.

SAP strongly recommends that you do not select price control V for semi-finished products
and finished products, because doing so will very easily cause the calculation of unrealistic
valuation prices. SAP recommends:  
Price control V for raw materials and trading goods; price control S for semi-finished products and
products.

If you nevertheless select price control V, take care in the following situations:

1. Unrealistic prices occur if materials are produced and also retire during one period (that is, the
inventory at the end of the period is smaller than the total of acquisitions from production orders)
and if, in addition, several production orders belonging to a material were finished in this period,
and the production order settlement calculates variances at the end of the period. Every single
production order carries out an inventory coverage check and may therefore cause the moving
average price to be changed. However, the individual production orders do not check whether the
inventory available at the end of the period has already been debited by another production order. 

Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and
delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the
warehouse. Since an activity price of a participating cost center was higher than planned , every
single production order calculates cost of goods manufactured of USD 1100 during the settlement.
Every single one carries out a inventory coverage check and finds out that the variance can be
posted completely to the inventory. That is, the ending inventory of one piece is debited with USD
20 x 100 and it consequently receives a price of USD 3000. 

1. A settlement is carried out although not all costs have yet been posted to the order. This can even
result in a price of 0 for the delivered product. 
2. No period check of the costs is carried out on the order, that is, costs from previous periods may
be settled. 
3. Settling orders is already possible in the 'Delivery completed' status.
Solution: 

Standard price for products together with possible manual price changes. 
If you are required to valuate semi-finished and finished products with actual prices that correspond
to the costs of the actual production, SAP recommends you use the function of the material ledger
for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than
the moving average price. A so-called price limited quantity is used which makes sure that in the
above example price differences are proportionally taken into account (95% of the total price
differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic
actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the
variances of the actual prices of the raw materials in the valuation of the semi-finished and finished
products that are manufactured from it.  
 

If we select standard price for any type of material or moving average price and then make
po, it will pick from material master or what?

The Purchase Info Record have the FIRST priority.  When no PO info record is found, the Purchase
Order will pick the user LAST enter price.  The PO module do not pick up any price from material
master.