What is 'cost of goods manufactured' in SAP CO-PC - Product Cost Controlling?

cost of goods manufactured - Overview

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Sum of the material and production costs incurred in the production of a material.

cost of goods manufactured - Details

• 
  Key Concepts: 
  Cost of Goods Manufactured (COGM) is a term used in SAP's CO-PC Product Cost Controlling component. It is the total cost of all the materials, labor, and overhead costs associated with producing a product. This includes the cost of raw materials, direct labor, and manufacturing overhead. 
  
  How to use it: 
  In SAP, COGM is calculated by taking the sum of the costs of raw materials, direct labor, and manufacturing overhead. This calculation is done in the Product Cost Planning module. The COGM can then be used to calculate the cost of goods sold (COGS) and the gross profit margin. 
  
  Tips & Tricks: 
  It is important to ensure that all costs associated with producing a product are included in the COGM calculation. This includes both direct and indirect costs such as raw materials, labor, and overhead. 
  
  Related Information: 
  The COGM calculation is used to calculate the cost of goods sold (COGS) and the gross profit margin. It is also used to determine the profitability of a product or service. Additionally, it can be used to compare different products or services in terms of their profitability.