What is costing in SAP CO - Controlling?

SAP Term: costing

• Component: CO

• Component Name: Controlling

• Description: A process that calculates the cost of goods manufactured or the cost of goods sold for products or cost objects. The results of costing are used to determine the following information: Target costs Variances for materials produced Contribution margin for materials sold The costing process is based on the order quantity or the costing lot size in the material master record.

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• Key Concepts: 
  Costing is a component of SAP Controlling (CO) that helps to analyze and manage the costs of a company. It enables users to track and analyze the costs associated with production, sales, and other activities. Costing also helps to identify areas of potential cost savings and to optimize the use of resources. 
  
  How to Use It: 
  Costing in SAP CO can be used to create cost estimates for products or services, track actual costs, and compare them to the estimates. It can also be used to analyze cost drivers and identify areas of potential cost savings. Additionally, it can be used to allocate costs across different departments or activities. 
  
  Tips & Tricks: 
  When using costing in SAP CO, it is important to ensure that all costs are accurately tracked and allocated. Additionally, it is important to regularly review cost estimates and actual costs in order to identify areas of potential cost savings. 
  
  Related Information: 
  For more information on costing in SAP CO, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_CO/7.5/en-US