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

SAP Term: standard cost estimate

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The most important type of cost estimate in material costing. Standard cost estimates form the basis for profit planning or product costing where the focus is on determining the variances. Typically, a standard cost estimate is created for each product at the beginning of the fiscal year or new season. Standard cost estimates establish standard prices for semifinished products and finished products. The costs calculated in standard cost estimates are used to value materials with standard price control.

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• Key Concepts: 
  Standard cost estimate is a feature of SAP's Product Cost Controlling (CO-PC) component. It is used to calculate the expected cost of a product or service based on the standard cost of the materials and labor required to produce it. The standard cost estimate is used to compare actual costs against expected costs, and to identify areas where costs can be reduced. 
  
  How to use it: 
  Standard cost estimates are created in the SAP system by entering the material and labor costs associated with a product or service. The system then calculates the expected cost based on these inputs. The standard cost estimate can then be used to compare actual costs against expected costs, and to identify areas where costs can be reduced. 
  
  Tips & Tricks: 
  When creating a standard cost estimate, it is important to ensure that all relevant material and labor costs are included. This will ensure that the estimate is as accurate as possible. Additionally, it is important to regularly review and update the standard cost estimate, as material and labor costs can change over time. 
  
  Related Information: 
  For more information on SAP's Product Cost Controlling (CO-PC) component, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_ERP_Central_Component/7.50/en-US.