What is volume variance in SAP CO-OM-CCA - Cost Center Accounting?

SAP Term: volume variance

• Component: CO-OM-CCA

• Component Name: Cost Center Accounting

• Description: The volume variance identifies over-absorption and under-absorption of fixed plan costs per cost element for each activity type. It shows whether the fixed cost center costs are covered by actual activity. The variance is always because of actual activity variance from plan activity.

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• Key Concepts: 
  Volume variance is a term used in Cost Center Accounting (CO-OM-CCA) in SAP. It is the difference between the actual cost of a product or service and the standard cost of the same product or service. This variance is calculated by taking the difference between the actual cost and the standard cost, and then multiplying it by the quantity of the product or service. 
  
  How to use it: 
  In order to calculate volume variance, you must first determine the standard cost of a product or service. This can be done by looking up the standard cost in a pricing table or by calculating it based on historical data. Once you have determined the standard cost, you can then calculate the volume variance by subtracting the actual cost from the standard cost and multiplying it by the quantity of the product or service. 
  
  Tips & Tricks: 
  When calculating volume variance, it is important to remember that it is only applicable to products or services that have a fixed quantity. If you are dealing with a product or service that has a variable quantity, then you will need to use another method to calculate its variance. Additionally, it is important to remember that volume variance only applies to products or services that have a fixed price. If you are dealing with a product or service that has a variable price, then you will need to use another method to calculate its variance. 
  
  Related Information: 
  Volume variance is closely related to other terms such as price variance and efficiency variance. Price variance is the difference between the actual price of a product or service and its standard price, while efficiency variance is the difference between the actual efficiency of a product or service and its standard efficiency. Additionally, volume variance can be used in conjunction with other methods such as activity-based costing (ABC) in order to more accurately calculate costs.