What is additive cost estimate in SAP (CO-PC - Product Cost Controlling)?

SAP Term: additive cost estimate

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A material cost estimate in which you can enter costs manually in the form of a unit cost estimate, so that the manual costs can be added to an automatic cost estimate with quantity structure.

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• Key Concepts: 
  Additive cost estimates are used in SAP Product Cost Controlling (CO-PC) to calculate the cost of a product or service. This type of cost estimate is based on the sum of all the individual costs associated with the production of the product or service. It takes into account all direct and indirect costs, such as labor, materials, overhead, and other expenses. 
  
  How to use it: 
  In SAP Product Cost Controlling, additive cost estimates are used to calculate the total cost of a product or service. This type of cost estimate is based on the sum of all the individual costs associated with the production of the product or service. To create an additive cost estimate, you must first enter all the relevant data into SAP CO-PC, such as labor costs, material costs, overhead costs, and other expenses. Once all the data has been entered, you can then use SAP CO-PC to calculate the total cost of the product or service. 
  
  Tips & Tricks: 
  When creating an additive cost estimate in SAP CO-PC, it is important to ensure that all relevant data is entered accurately and completely. This will ensure that your cost estimate is accurate and reliable. Additionally, it is important to keep track of any changes that are made to the data over time, as this can affect your cost estimate. 
  
  Related Information: 
  Additive cost estimates are just one type of cost estimate used in SAP Product Cost Controlling (CO-PC). Other types of cost estimates include standard costing and activity-based costing. Additionally, there are various methods for calculating costs in SAP CO-PC, such as bottom-up costing and top-down costing.