What is fixed cost rate in SAP CO-OM - Overhead Cost Controlling?

SAP Term: fixed cost rate

• Component: CO-OM

• Component Name: Overhead Cost Controlling

• Description: The cost charged for an activity that is independent of the activity quantity.

Smart SAP Assistant

• Key Concepts: 
  Fixed cost rate is a term used in SAP's CO-OM Overhead Cost Controlling component. It is a rate used to calculate the overhead costs of a particular activity or process. The rate is determined by dividing the total overhead costs by the total activity or process costs. 
  
  How to use it: 
  In order to use the fixed cost rate, you must first determine the total overhead costs and the total activity or process costs. Once these two values are determined, you can divide the overhead costs by the activity or process costs to get the fixed cost rate. This rate can then be used to calculate the overhead costs of any given activity or process. 
  
  Tips & Tricks: 
  When calculating the fixed cost rate, it is important to ensure that all overhead costs are included in the calculation. This includes any indirect costs such as administrative expenses, insurance, and taxes. Additionally, it is important to ensure that all activity or process costs are included in the calculation as well. 
  
  Related Information: 
  The fixed cost rate can be used in conjunction with other SAP components such as CO-PA Profit Center Accounting and CO-PC Product Cost Controlling. Additionally, it can be used to help determine pricing strategies for products and services.