What is cost object in SAP CO-PC - Product Cost Controlling?

SAP Term: cost object

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Cost objects are the activity units of the value added process to which, in accordance with their cause, costs are added on an accrual basis period-based. Cost objects can either be standalone entities so-called cost object Ids or represent other entities, such as orders, projects, or the like. The system performs a preliminary costing, a simultaneous costing, and a final costing for each cost object. In the SAP system, the following cost objects, amongst others, can be used: Product cost collectors Production orders Process orders Cost object IDs Sales order items

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• Key Concepts: 
  A cost object is an entity in SAP Product Cost Controlling (CO-PC) that is used to collect and analyze costs. It can be a product, a production order, a sales order, or any other object that incurs costs. The cost object is used to track the costs associated with the object and to analyze the cost structure. 
  
  How to use it: 
  Cost objects are created in the SAP system and assigned to the relevant cost centers. The cost object is then used to track the costs associated with it. The costs are collected from various sources such as material costs, labor costs, overhead costs, etc. The cost object can then be used to analyze the cost structure and identify areas of improvement. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant costs are captured in the cost object. This includes both direct and indirect costs. Additionally, it is important to ensure that all cost objects are properly maintained and updated regularly. This will ensure that accurate and up-to-date information is available for analysis. 
  
  Related Information: 
  The cost object is closely related to other components of SAP Product Cost Controlling such as cost centers, activity types, and cost elements. It is also related to other components of SAP such as Materials Management (MM) and Financial Accounting (FI).