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

SAP Term: cost object hierarchy

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A set of cost objects structured in hierarchical form.

Smart SAP Assistant

• Key Concepts: 
  Cost object hierarchy is a feature of SAP's Product Cost Controlling (CO-PC) component. It is a structure of cost objects that are used to track and analyze the costs associated with a product or service. The cost object hierarchy consists of cost centers, cost elements, and cost objects. Cost centers are the highest level of the hierarchy and are used to group costs into categories. Cost elements are the next level down and are used to further break down costs into more specific categories. Finally, cost objects are the lowest level of the hierarchy and are used to track individual costs associated with a product or service. 
  
  How to use it: 
  The cost object hierarchy can be used to track and analyze costs associated with a product or service. To do this, users must first create a cost center, which is the highest level of the hierarchy. This cost center will be used to group costs into categories. Next, users must create cost elements, which are used to further break down costs into more specific categories. Finally, users must create cost objects, which are used to track individual costs associated with a product or service. 
  
  Tips & Tricks: 
  When creating a cost object hierarchy, it is important to ensure that all levels of the hierarchy are properly linked together. This will ensure that all costs associated with a product or service can be tracked and analyzed accurately. Additionally, it is important to ensure that all levels of the hierarchy have meaningful names that accurately describe their purpose. This will make it easier for users to understand and navigate the cost object hierarchy. 
  
  Related Information: 
  For more information on SAP's Product Cost Controlling (CO-PC) component and its features, please refer to SAP's official documentation at https://help.sap.com/viewer/product/SAP_ERP_Central_Component/7.50/en-US