What is 'planned cost' in SAP AP-COS - FIN Costing?

planned cost - Overview

• Component: AP-COS

• Component Name: FIN Costing

• Description: The cost expected to be incurred for a cost object or item.

planned cost - Details

• 
  Key Concepts: 
  Planned cost is a term used in SAP's Financial Costing (AP-COS FIN) component. It is the estimated cost of a product or service before it is actually produced or delivered. This cost is based on the expected costs of materials, labor, and other resources needed to produce the product or service. 
  
  How to use it: 
  Planned cost can be used to help businesses plan their budgets and make decisions about production and delivery. It can also be used to compare actual costs to planned costs, allowing businesses to identify areas where they can save money or increase efficiency. 
  
  Tips & Tricks: 
  When calculating planned costs, it is important to consider all potential costs associated with producing a product or service. This includes not only the cost of materials and labor, but also any overhead costs such as shipping, taxes, and insurance. 
  
  Related Information: 
  Planned cost is closely related to actual cost, which is the actual cost of producing a product or service after it has been produced or delivered. Comparing planned cost to actual cost can help businesses identify areas where they can save money or increase efficiency.