diff --git a/erpnext/manufacturing/doctype/bom/bom.js b/erpnext/manufacturing/doctype/bom/bom.js
index 5ee98de376..4dd8205a70 100644
--- a/erpnext/manufacturing/doctype/bom/bom.js
+++ b/erpnext/manufacturing/doctype/bom/bom.js
@@ -65,13 +65,7 @@ frappe.ui.form.on("BOM", {
 		});
 	},
 
-	validate: function(frm) {
-		if (frm.doc.fg_based_operating_cost && frm.doc.with_operations) {
-			frappe.throw({message: __("Please check either with operations or FG Based Operating Cost."), title: __("Mandatory")});
-		}
-	},
-
-	onload_post_render: function(frm) {
+	onload_post_render(frm) {
 		frm.get_field("items").grid.set_multiple_add("item_code", "qty");
 	},
 
@@ -542,20 +536,14 @@ erpnext.bom.calculate_op_cost = function(doc) {
 	doc.operating_cost = 0.0;
 	doc.base_operating_cost = 0.0;
 
-	if(doc.with_operations) {
-		for(var i=0;i<op.length;i++) {
-			var operating_cost = flt(flt(op[i].hour_rate) * flt(op[i].time_in_mins) / 60, 2);
-			var base_operating_cost = flt(operating_cost * doc.conversion_rate, 2);
-			frappe.model.set_value('BOM Operation',op[i].name, "operating_cost", operating_cost);
-			frappe.model.set_value('BOM Operation',op[i].name, "base_operating_cost", base_operating_cost);
+	for(var i=0;i<op.length;i++) {
+		var operating_cost = flt(flt(op[i].hour_rate) * flt(op[i].time_in_mins) / 60, 2);
+		var base_operating_cost = flt(operating_cost * doc.conversion_rate, 2);
+		frappe.model.set_value('BOM Operation',op[i].name, "operating_cost", operating_cost);
+		frappe.model.set_value('BOM Operation',op[i].name, "base_operating_cost", base_operating_cost);
 
-			doc.operating_cost += operating_cost;
-			doc.base_operating_cost += base_operating_cost;
-		}
-	} else if(doc.fg_based_operating_cost) {
-		let total_operating_cost = doc.quantity * flt(doc.operating_cost_per_bom_quantity);
-		doc.operating_cost = total_operating_cost;
-		doc.base_operating_cost = flt(total_operating_cost * doc.conversion_rate, 2);
+		doc.operating_cost += operating_cost;
+		doc.base_operating_cost += base_operating_cost;
 	}
 	refresh_field(['operating_cost', 'base_operating_cost']);
 };
diff --git a/erpnext/manufacturing/doctype/bom/bom.json b/erpnext/manufacturing/doctype/bom/bom.json
index 2d936ea92e..c31b69f3dc 100644
--- a/erpnext/manufacturing/doctype/bom/bom.json
+++ b/erpnext/manufacturing/doctype/bom/bom.json
@@ -33,9 +33,6 @@
   "column_break_23",
   "transfer_material_against",
   "routing",
-  "fg_based_operating_cost",
-  "fg_based_section_section",
-  "operating_cost_per_bom_quantity",
   "operations_section",
   "operations",
   "materials_section",
@@ -578,26 +575,7 @@
   {
    "fieldname": "scrap_items_section",
    "fieldtype": "Section Break",
-   "label": "Scrap Items",
-   "hide_border": 1
-  },
-  {
-   "default": "0",
-   "fieldname": "fg_based_operating_cost",
-   "fieldtype": "Check",
-   "label": "FG based Operating Cost"
-  },
-  {
-   "depends_on": "fg_based_operating_cost",
-   "fieldname": "fg_based_section_section",
-   "fieldtype": "Section Break",
-   "label": "FG Based Operating Cost Section"
-  },
-  {
-   "depends_on": "fg_based_operating_cost",
-   "fieldname": "operating_cost_per_bom_quantity",
-   "fieldtype": "Currency",
-   "label": "Operating Cost Per BOM Quantity"
+   "label": "Scrap Items"
   }
  ],
  "icon": "fa fa-sitemap",
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 8ab79e68be..53af28df8a 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -614,26 +614,18 @@ class BOM(WebsiteGenerator):
 		"""Update workstation rate and calculates totals"""
 		self.operating_cost = 0
 		self.base_operating_cost = 0
-		if self.get("with_operations"):
-			for d in self.get("operations"):
-				if d.workstation:
-					self.update_rate_and_time(d, update_hour_rate)
+		for d in self.get("operations"):
+			if d.workstation:
+				self.update_rate_and_time(d, update_hour_rate)
 
-				operating_cost = d.operating_cost
-				base_operating_cost = d.base_operating_cost
-				if d.set_cost_based_on_bom_qty:
-					operating_cost = flt(d.cost_per_unit) * flt(self.quantity)
-					base_operating_cost = flt(d.base_cost_per_unit) * flt(self.quantity)
+			operating_cost = d.operating_cost
+			base_operating_cost = d.base_operating_cost
+			if d.set_cost_based_on_bom_qty:
+				operating_cost = flt(d.cost_per_unit) * flt(self.quantity)
+				base_operating_cost = flt(d.base_cost_per_unit) * flt(self.quantity)
 
-				self.operating_cost += flt(operating_cost)
-				self.base_operating_cost += flt(base_operating_cost)
-
-		elif self.get("fg_based_operating_cost"):
-			total_operating_cost = flt(self.get("quantity")) * flt(
-				self.get("operating_cost_per_bom_quantity")
-			)
-			self.operating_cost = total_operating_cost
-			self.base_operating_cost = flt(total_operating_cost * self.conversion_rate, 2)
+			self.operating_cost += flt(operating_cost)
+			self.base_operating_cost += flt(base_operating_cost)
 
 	def update_rate_and_time(self, row, update_hour_rate=False):
 		if not row.hour_rate or update_hour_rate:
diff --git a/erpnext/manufacturing/doctype/bom/test_bom.py b/erpnext/manufacturing/doctype/bom/test_bom.py
index d60feb2b39..16f5c79372 100644
--- a/erpnext/manufacturing/doctype/bom/test_bom.py
+++ b/erpnext/manufacturing/doctype/bom/test_bom.py
@@ -202,33 +202,6 @@ class TestBOM(FrappeTestCase):
 
 		self.assertEqual(bom.items[0].rate, 20)
 
-	def test_bom_cost_with_fg_based_operating_cost(self):
-		bom = frappe.copy_doc(test_records[4])
-		bom.insert()
-
-		raw_material_cost = 0.0
-		op_cost = 0.0
-
-		op_cost = bom.quantity * bom.operating_cost_per_bom_quantity
-
-		for row in bom.items:
-			raw_material_cost += row.amount
-
-		base_raw_material_cost = raw_material_cost * flt(
-			bom.conversion_rate, bom.precision("conversion_rate")
-		)
-		base_op_cost = op_cost * flt(bom.conversion_rate, bom.precision("conversion_rate"))
-
-		# test amounts in selected currency, almostEqual checks for 7 digits by default
-		self.assertAlmostEqual(bom.operating_cost, op_cost)
-		self.assertAlmostEqual(bom.raw_material_cost, raw_material_cost)
-		self.assertAlmostEqual(bom.total_cost, raw_material_cost + op_cost)
-
-		# test amounts in selected currency
-		self.assertAlmostEqual(bom.base_operating_cost, base_op_cost)
-		self.assertAlmostEqual(bom.base_raw_material_cost, base_raw_material_cost)
-		self.assertAlmostEqual(bom.base_total_cost, base_raw_material_cost + base_op_cost)
-
 	def test_subcontractor_sourced_item(self):
 		item_code = "_Test Subcontracted FG Item 1"
 		set_backflush_based_on("Material Transferred for Subcontract")
diff --git a/erpnext/manufacturing/doctype/bom/test_records.json b/erpnext/manufacturing/doctype/bom/test_records.json
index e9cbdfe638..507d319b51 100644
--- a/erpnext/manufacturing/doctype/bom/test_records.json
+++ b/erpnext/manufacturing/doctype/bom/test_records.json
@@ -162,31 +162,5 @@
   "item": "_Test Variant Item",
   "quantity": 1.0,
   "with_operations": 1
- },
- {
-  "items": [
-   {
-    "amount": 5000.0,
-    "doctype": "BOM Item",
-    "item_code": "_Test Item",
-    "parentfield": "items",
-    "qty": 2.0,
-    "rate": 3000.0,
-    "uom": "_Test UOM",
-    "stock_uom": "_Test UOM",
-    "source_warehouse": "_Test Warehouse - _TC",
-    "include_item_in_manufacturing": 1
-   }
-  ],
-  "docstatus": 1,
-  "doctype": "BOM",
-  "is_active": 1,
-  "is_default": 1,
-  "currency": "USD",
-  "item": "_Test Variant Item",
-  "quantity": 1.0,
-  "with_operations": 0,
-  "fg_based_operating_cost": 1,
-  "operating_cost_per_bom_quantity": 140
  }
 ]