What is total absolute variance in SAP CO-PC - Product Cost Controlling?

SAP Term: total absolute variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The sum of the absolute values of all variances for a production order. This is only calculated for orders that are delivered or technically completed. For example, if an order has an input price variance of +1000, and a resource usage variance of -1000, then the total absolute variance is 2000. Note that in this example, the total cost variance would be 0.

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• Key Concepts: 
  Total absolute 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 planned cost of the product. This variance is calculated by taking the absolute value of the difference between the actual and planned costs. 
  
  How to use it: 
  Total absolute variance can be used to measure the efficiency of a production process. It can be used to identify areas where costs are higher than expected, and can help to identify potential areas for cost savings. 
  Tips & Tricks: 
  When calculating total absolute variance, it is important to ensure that all costs are taken into account, including both direct and indirect costs. Additionally, it is important to ensure that all costs are calculated in the same currency. 
  Related Information: 
  Total absolute variance is related to other measures of cost efficiency, such as total relative variance and total standard deviation. Additionally, total absolute variance can be used in conjunction with other measures of cost efficiency, such as cost per unit or cost per hour.