Activity Dependant and Independant Cost in real time scenarios

[Former Member]

Hi SAP Gurus,

I know what is activity Dependant and independant costs. But i would like to know in the realtime scenario what are the costs that would be treated as activity dependant costs and how thay will be handled.

You answer would be suitably rewarded with points

Thanks in advnace

[Former Member · Accepted solution]

Hi

In real time based on client practices, the cost/activity plan will be based on activity dependant cost.

ex: There is Quality control department and it carries out testing of the products.

now, to get plan/budgeted cost/activity, we can choose the requied cost elements to be planned for the period.

like:

the cost elements are

QC cost elements

Salararies & Benefits

Indirect Materials

Indirect Expeneses

and fixed expenses

for above cost elements we do cost/activity dependant plan and calculate the cost per i hour of testing based on parameters.

Regards

Laxmiprasad