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

SAP Term: mixed-price variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Variance category on the output side that shows the variance between the standard price calculated in a mixed cost estimate of multiple procurement alternatives procurement versions and the cost estimate of a single procurement alternative.

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• Key Concepts: 
  Mixed-price variance is a term used in SAP's CO-PC Product Cost Controlling component. It is a measure of the difference between the actual cost of a product and the standard cost of the same product. The mixed-price variance is calculated by taking the difference between the actual cost and the standard cost, and then multiplying it by the quantity of the product. 
  
  How to use it: 
  Mixed-price variance can be used to identify areas where costs are higher than expected. This can help companies identify areas where they can reduce costs and improve their bottom line. It can also be used to compare different products and determine which ones are more cost-effective. 
  
  Tips & Tricks: 
  When calculating mixed-price variance, it is important to ensure that all costs are included in the calculation. This includes both direct and indirect costs, such as labor, materials, overhead, etc. Additionally, it is important to ensure that all prices are up-to-date and accurate. 
  
  Related Information: 
  Mixed-price variance is closely related to other terms such as price variance and quantity variance. Price variance measures the difference between the actual price of a product and its standard price, while quantity variance measures the difference between the actual quantity of a product and its standard quantity.