What is control cost in SAP CO - Controlling?

SAP Term: control cost

• Component: CO

• Component Name: Controlling

• Description: The costs that are compared with the target costs when the variances are calculated. In Overhead Cost -OM, the control costs are always the actual costs. In Cost Object -PC-OBJ, the control costs are either the actual costs less the work in progress and scrap, or the cost calculated in the preliminary cost estimate for the order, depending on the target cost version.

Smart SAP Assistant

• Key Concepts: 
  Control cost is a term used in SAP Controlling (CO) to refer to the costs associated with controlling and monitoring the activities of an organization. It includes costs related to planning, budgeting, monitoring, and reporting. Control cost is a key component of the overall cost structure of an organization. 
  
  How to use it: 
  In SAP Controlling, control cost can be tracked and monitored using various tools such as cost centers, cost elements, and activity types. Cost centers are used to group costs into categories such as production, marketing, or research and development. Cost elements are used to track specific costs such as labor or materials. Activity types are used to track activities such as production or sales. 
  
  Tips & Tricks: 
  When tracking control cost in SAP Controlling, it is important to ensure that all costs are accurately tracked and reported. This can be done by setting up a system of checks and balances to ensure that all costs are accounted for. Additionally, it is important to regularly review the control cost data to ensure that it is accurate and up-to-date. 
  
  Related Information: 
  Control cost is closely related to other concepts in SAP Controlling such as overhead costs and fixed costs. Overhead costs are those costs that are not directly related to the production of goods or services but are necessary for the operation of the business. Fixed costs are those costs that remain constant regardless of changes in production or sales volume.