1. SAP Glossary
  2. Controlling
  3. fixed-cost variance


What is fixed-cost variance in SAP CO - Controlling?


SAP Term: fixed-cost variance

  • Component: CO

  • Component Name: Controlling

  • Description: The difference between the planned fixed costs and the allocated actual fixed costs. Fixed cost variances arise when part of the planned fixed costs are not covered by the amount for which the cost center is credited.


Smart SAP Assistant

  • Key Concepts: 
    Fixed-cost variance is a term used in SAP Controlling (CO) to describe the difference between the actual fixed costs incurred and the budgeted fixed costs. It is calculated by subtracting the budgeted fixed costs from the actual fixed costs. This variance can be used to analyze the performance of a company's cost management.
    
    How to use it: 
    In SAP Controlling, fixed-cost variance can be calculated by entering the budgeted and actual fixed costs into the system. The system will then calculate the variance and display it in a report. This report can be used to analyze the performance of a company's cost management.
    
    Tips & Tricks: 
    It is important to ensure that all budgeted and actual fixed costs are entered accurately into the system in order to get an accurate calculation of the fixed-cost variance. Additionally, it is important to review the report regularly in order to identify any potential issues with cost management.
    
    Related Information: 
    Fixed-cost variance is related to other terms such as variable-cost variance, which is used to describe the difference between the actual variable costs incurred and the budgeted variable costs. Additionally, it is related to other SAP Controlling terms such as cost center accounting and profitability analysis.
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