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Former Member

Cost Component

What is cost componet?

where it will hit in COPC?

what is the purpose of cost component?

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1 Answer

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    Former Member
    Oct 08, 2007 at 10:09 AM

    Hi,

    A grouping of cost elements that makes the costs of a material, an activity type, or a process transparent.

    Groups the costs of a material according to the requirements for material valuation and profitability analysis

    The cost components are listed in a cost component structure that can contain up to 40 cost components (cost fields).

    You can create up to 40 cost components that contain variable costs.

    For cost components that contain full costs, the system creates a second cost field for the fixed costs. This means that you can create no more than 20 cost components that are full costs.

    The costs for a raw material appear under the cost component "raw materials" in the cost estimate of the semifinished material and the higher-level semifinished materials and finished materials.

    When defining the cost components you must determine whether they:

    1. Contain cost of goods manufactured, sales and administration costs, or nonrelevant costs

    2. relevant for the initial cost split

    3. rolled up to the next-highest costing level

    Regards

    Balaji

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