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

SAP Term: mixed costing

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A costing method that uses multiple cost estimates to calculate a mixed price for a material. An equivalence number is applied to each of the cost estimates, and the cost estimates are adjusted to a uniform costing lot size. The result is a mixed cost estimate that can be used to update the standard price.

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• Key Concepts: 
  Mixed costing is a method of product cost controlling in SAP's CO-PC module. It is used to calculate the cost of a product based on both fixed and variable costs. Fixed costs are those that remain constant regardless of the number of products produced, while variable costs are those that change depending on the number of products produced. 
  
  How to use it: 
  Mixed costing is used to calculate the cost of a product by taking into account both fixed and variable costs. The fixed costs are calculated first, then the variable costs are added to the total cost. The total cost is then divided by the number of products produced to get the cost per unit. 
  
  Tips & Tricks: 
  When using mixed costing, it is important to accurately calculate both fixed and variable costs. This will ensure that the cost per unit is accurate and that the total cost of production is not underestimated or overestimated. 
  
  Related Information: 
  Mixed costing is one of several methods used in SAP's CO-PC module for product cost controlling. Other methods include standard costing, activity-based costing, and process costing.