What is 'lot size variance' in SAP CO-PC - Product Cost Controlling?

lot size variance - Overview

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Difference between fixed planned costs and fixed allocated actual costs. Lot size variances occur because a part of the total costs for an order or a cost object hierarchy does not change with the change of the output quantity. &EXAMPLE& The fixed costs of a transaction for example, setup costs remain the same, irrespective of how often the transaction is repeated.

lot size variance - Details

• 
  Key Concepts: 
  Lot size variance is a term used in SAP's CO-PC Product Cost Controlling component. It is the difference between the actual cost of a product and the standard cost of a product, based on the lot size of the product. The lot size variance is calculated by multiplying the difference between the actual and standard costs by the lot size of the product. 
  
  How to use it: 
  In order to calculate lot size variance, you must first determine the actual cost and standard cost of a product. The actual cost is determined by taking into account all costs associated with producing the product, such as raw materials, labor, overhead, etc. The standard cost is determined by taking into account all costs associated with producing a certain quantity of the product. Once these two costs are determined, you can then calculate the lot size variance by multiplying the difference between the actual and standard costs by the lot size of the product. 
  
  Tips & Tricks: 
  When calculating lot size variance, it is important to remember that it is based on both actual and standard costs. Therefore, it is important to ensure that both costs are accurate in order to get an accurate result. Additionally, it is important to remember that lot size variance is calculated based on the lot size of the product, so