What is actual cost in SAP AP-COS - FIN Costing?

SAP Term: actual cost

• Component: AP-COS

• Component Name: FIN Costing

• Description: The cost actually incurred for a cost object or item.

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• Key Concepts: 
   Actual cost is a term used in SAP's Financial Costing (AP-COS FIN) component. It is the total cost of a product or service that has been incurred up to a certain point in time. This includes both direct and indirect costs, such as labor, materials, overhead, and other expenses. 
  
  How to use it: 
   Actual cost can be used to determine the profitability of a product or service. It can also be used to compare the actual cost of a product or service to its estimated cost. This comparison can help identify areas where costs can be reduced or improved. 
  
  Tips & Tricks: 
   When calculating actual cost, it is important to include all relevant costs, including those that may not be immediately apparent. This includes indirect costs such as overhead and other expenses. Additionally, it is important to ensure that all costs are up-to-date and accurate. 
  
  Related Information: 
   Actual cost is closely related to standard cost, which is the estimated cost of a product or service based on historical data and industry standards. Standard cost can be used to compare actual cost and identify areas for improvement. Additionally, actual cost can be used in conjunction with other financial metrics such as gross margin and return on investment (ROI).