What is marginal costs in SAP CO - Controlling?

SAP Term: marginal costs

• Component: CO

• Component Name: Controlling

• Description: The manufacturing costs that vary according to output. Variable costs include direct material costs, direct labor, and the variable portion of overhead.

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• Key Concepts: 
  Marginal costs are the additional costs incurred when producing one additional unit of a product or service. In SAP Controlling (CO), marginal costs are used to calculate the cost of a product or service based on the cost of the resources used to produce it. 
  
  How to use it: 
  In SAP Controlling, marginal costs are calculated by taking into account the cost of the resources used to produce a product or service. This includes direct materials, labor, and overhead costs. The marginal cost of a product or service is then used to determine its price. 
  
  Tips & Tricks: 
  When calculating marginal costs in SAP Controlling, it is important to consider all of the resources used in production, including direct materials, labor, and overhead costs. This will ensure that the cost of a product or service is accurately calculated. 
  
  Related Information: 
  Marginal costs are closely related to other concepts such as fixed costs and variable costs. Fixed costs are those that remain constant regardless of production levels, while variable costs are those that change with production levels. Understanding these concepts can help you better understand how marginal costs are calculated in SAP Controlling.