Material cost - fixed & total

[former_member218048]

I have one doubt. I have run the costing run and analysing the costs. In the material costs, I find the bifurcation of fixed cost and total cost. i.e. means the difference is a variable cost. I know that there is a price in the material master record. Which is this price in the costing result - fixed cost, variable cost or total cost ? If it is variable cost, what is the fixed cost and from where it is coming ?

[former_member218048]

thanks for the inputs

[Adimallaiah]

Hi Nikitha,

You can find some details on the below web links : how Material Prices and Activity prices are calculated for standard costing run.

Valuation of Materials

http://help.sap.com/saphelp_47x200/helpdata/en/7e/cb80f643a311d189ee0000e81ddfac/content.htm

Valuation of Production Activities:

http://help.sap.com/saphelp_47x200/helpdata/en/7e/cb810343a311d189ee0000e81ddfac/content.htm

BR,

ADI

[Former Member]

Dear Nikkitha,

The total costs of a FG may consist of both vairable and fixed costs.

Raw material costs are normally variable costs.

You may have fixed costs in the Labor costs i.e for some activities you may have some portion of fixed costs and some potions of vairable costs. You will update these costs in the Planning (KP06). This will later appear in KP26.

You may also have fixed overheads which are charged when you apply overhead.

Kind Regards

Umapathi G