What is secondary fixed cost variance in SAP CO-OM-CCA - Cost Center Accounting?

SAP Term: secondary fixed cost variance

• Component: CO-OM-CCA

• Component Name: Cost Center Accounting

• Description: The difference between the fixed plan costs and the fixed target costs. This occurs only when activity-dependent activity inputs are made for a cost center or business process. A portion of the fixed target costs variable target quantity x fixed price varies with the operating rate.

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• Key Concepts: 
  Secondary fixed cost variance is a term used in Cost Center Accounting (CO-OM-CCA) in SAP. It is the difference between the actual fixed costs incurred and the planned fixed costs for a given period. This variance is calculated by subtracting the planned fixed costs from the actual fixed costs. 
  
  How to use it: 
  In order to calculate the secondary fixed cost variance, you must first determine the actual and planned fixed costs for a given period. The actual fixed costs can be found in the cost center accounting system, while the planned fixed costs can be found in the budgeting system. Once these values are determined, you can subtract the planned fixed costs from the actual fixed costs to calculate the secondary fixed cost variance. 
  
  Tips & Tricks: 
  It is important to note that secondary fixed cost variance does not take into account any changes in production volume or other factors that may affect the actual and planned costs. Therefore, it is important to consider these factors when calculating this variance. Additionally, it is important to ensure that all of the data used for calculating this variance is accurate and up-to-date. 
  
  Related Information: 
  The secondary fixed cost variance can be used to identify areas where there are discrepancies between actual and planned costs. This information can then be used to make adjustments to future budgets or production plans in order to reduce or eliminate these discrepancies. Additionally, this variance can be used to identify areas where cost savings can be achieved.