What is usage variance in SAP CO - Controlling?

SAP Term: usage variance

• Component: CO

• Component Name: Controlling

• Description: The difference between planned and actual costs caused by higher usage of material, time, and so on.

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• Key Concepts: 
  Usage variance is a term used in SAP Controlling (CO) to describe the difference between the actual usage of an activity and the planned usage. It is calculated by subtracting the planned usage from the actual usage. This variance can be used to analyze the efficiency of production processes and identify areas for improvement. 
  
  How to use it: 
  Usage variance can be calculated in SAP Controlling by entering the planned and actual usage values into the system. The system will then calculate the variance and display it on a report. This report can then be used to analyze the efficiency of production processes and identify areas for improvement. 
  
  Tips & Tricks: 
  It is important to ensure that the planned and actual usage values are accurate before calculating the variance. This will ensure that the variance is an accurate representation of the efficiency of production processes. 
  
  Related Information: 
  Usage variance is related to other terms such as cost variance, which is used to measure the difference between actual costs and planned costs. It is also related to capacity variance, which is used to measure the difference between actual capacity and planned capacity.