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

SAP Term: product costing

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A tool for planning costs and establishing prices. Product costing calculates the cost of goods manufactured and the cost of goods sold per product unit. Products are costed automatically using the BOMs and routings in Production Planning.

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• Key Concepts: 
  Product costing is a component of SAP's CO-PC Product Cost Controlling module. It is used to calculate the cost of a product or service based on the materials, labor, and overhead costs associated with it. It also helps to identify areas where costs can be reduced and profits increased. 
  
  How to use it: 
  Product costing in SAP is used to calculate the cost of a product or service based on the materials, labor, and overhead costs associated with it. This information can then be used to make decisions about pricing, production, and other aspects of the business. The system also allows users to track changes in costs over time and compare them to industry standards. 
  
  Tips & Tricks: 
  When using product costing in SAP, it is important to ensure that all costs are accurately accounted for. This includes both direct and indirect costs such as materials, labor, and overhead. Additionally, it is important to keep track of changes in costs over time so that pricing decisions can be made accordingly. 
  
  Related Information: 
  Product costing is closely related to other components of SAP's CO-PC Product Cost Controlling module such as cost center accounting and activity-based costing. Additionally, product costing can be used in conjunction with other modules such as Materials Management and Sales & Distribution.