What is costing model in SAP CO-PC - Product Cost Controlling?

SAP Term: costing model

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A planning tool for simplified cost planning. Costing models are used to design planning procedures that are performed frequently in similar ways. The factors that drive costs the characteristics are converted into a unit cost estimate by deriving the costing items from the characteristics. The characteristics are defined by the planner in the costing model. Characteristics values can be predefined. For each characteristic, rules are defined that determine how data is assigned in the SAP System. &EXAMPLE& Characteristics: Number of employees, mode of travel, equipment needed Values: 4, car predefined, laptop PC predefined

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• Key Concepts: 
  A costing model is a tool used in SAP's CO-PC Product Cost Controlling component to calculate the cost of a product or service. It is based on the cost elements and cost objects that are used to define the cost structure of a product or service. The costing model is used to determine the cost of a product or service based on the cost elements and cost objects that are associated with it. 
  
  How to use it: 
  The costing model is used to calculate the cost of a product or service by taking into account the cost elements and cost objects associated with it. The cost elements are used to define the cost structure of a product or service, while the cost objects are used to define the actual costs associated with producing or providing the product or service. The costing model is then used to calculate the total cost of a product or service based on these two components. 
  
  Tips & Tricks: 
  When using the costing model, it is important to ensure that all of the relevant cost elements and cost objects are taken into account when calculating the total cost of a product or service. Additionally, it is important to ensure that all of the costs associated with producing or providing a product or service are accurately accounted for in order to get an accurate calculation of the total cost. 
  
  Related Information: 
  For more information about SAP's CO-PC Product Cost Controlling component and its costing model, please refer to SAP's official documentation at https://help.sap.com/viewer/product/CO-PC/latest/en-US.