What is variance in SAP CO - Controlling?

SAP Term: variance

• Component: CO

• Component Name: Controlling

• Description: The difference between target cost and control cost that is analyzed in cost accounting. Target costs can be calculated on the basis of various costs such as standard costs or planned costs. Control costs can be the actual costs.

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• Key Concepts: 
  Variance in SAP CO Controlling is the difference between the actual cost of a product or service and the planned cost. It is used to measure the efficiency of a company's operations and to identify areas where costs can be reduced. Variance can be calculated for both direct and indirect costs. 
  
  How to use it: 
  In SAP CO Controlling, variance is calculated by comparing the actual cost of a product or service with the planned cost. The variance is then used to identify areas where costs can be reduced or improved. Variance can also be used to measure the efficiency of a company's operations. 
  
  Tips & Tricks: 
  When calculating variance in SAP CO Controlling, it is important to ensure that all costs are taken into account, including both direct and indirect costs. It is also important to ensure that the planned cost is accurate and up-to-date. 
  
  Related Information: 
  Variance analysis is an important tool for measuring the performance of a company's operations. It can also be used to identify areas where costs can be reduced or improved. Variance analysis can be used in conjunction with other tools such as budgeting and forecasting to help companies make informed decisions about their operations.