What is cost behavior in SAP CO-OM-ABC - Activity-Based Costing?

SAP Term: cost behavior

• Component: CO-OM-ABC

• Component Name: Activity-Based Costing

• Description: An attribute of a business process indicating the dependencies influencing the process costs. &EXAMPLE& Number of lots - Costs depend on the number of lots to be processed. Activity quantity neutral - Costs are independent of the activities produced such as personnel costs for the cost center responsible person.

Smart SAP Assistant

• Key Concepts: 
  Cost behavior is a term used in Activity-Based Costing (ABC) in SAP's CO-OM module. It refers to the way in which costs change in relation to changes in the level of activity. For example, when production increases, the cost of materials may increase as well. 
  
  How to use it: 
  In order to use cost behavior in SAP's CO-OM module, you must first set up an activity-based costing system. This involves defining activities and assigning costs to them. Once this is done, you can then analyze the cost behavior of each activity and make decisions based on the results. 
  
  Tips & Tricks: 
  When analyzing cost behavior, it is important to consider both fixed and variable costs. Fixed costs are those that remain constant regardless of changes in activity levels, while variable costs are those that change with activity levels. It is also important to consider the time frame of the analysis, as different time frames may yield different results. 
  
  Related Information: 
  For more information on cost behavior and Activity-Based Costing in SAP's CO-OM module, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed explanations and examples of how to use cost behavior in SAP's CO-OM module.