What is standard cost in SAP CO-PC - Product Cost Controlling?

SAP Term: standard cost

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A cost that is based on an activity unit and that remains stable over a relatively long period of time, such as a year. A standard cost usually represents a norm that should not be exceeded.

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• Key Concepts: 
  Standard cost is a method of product costing used in SAP's CO-PC Product Cost Controlling component. It is a predetermined cost that is assigned to a product or service based on the estimated costs of the materials, labor, and overhead associated with producing it. This cost is used to compare actual costs to the standard cost and identify any variances. 
  
  How to Use it: 
  Standard cost can be used to calculate the cost of a product or service by taking into account the estimated costs of materials, labor, and overhead associated with producing it. This cost can then be compared to the actual costs incurred in order to identify any variances. The standard cost can also be used to set pricing for products or services. 
  
  Tips & Tricks: 
  When setting a standard cost for a product or service, it is important to consider all of the costs associated with producing it, including materials, labor, and overhead. Additionally, it is important to regularly review and update the standard cost in order to ensure that it accurately reflects current market prices and production costs. 
  
  Related Information: 
  For more information on standard cost in SAP's CO-PC Product Cost Controlling component, please refer to SAP's official documentation here: https://help.sap.com/viewer/product/SAP_CO-PC/7.5/en-US