What is 'consumption rate' in SAP EPM-IM-FPL - EPM IM Flying Profit&Loss (Leopard)?

consumption rate - Overview

• Component: EPM-IM-FPL

• Component Name: EPM IM Flying Profit&Loss (Leopard)

• Description: The amount of resources consumed by an iteration of an activity in a transaction or the amount of resource consumed by the transaction itself.

consumption rate - Details

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  Key Concepts: 
  Consumption rate is a term used in SAP's EPM-IM-FPL (EPM IM Flying Profit&Loss) module, also known as Leopard. It is a measure of the rate at which resources are used up in the production process. It is calculated by dividing the total cost of resources consumed by the total output produced. 
  
  How to use it: 
  The consumption rate can be used to measure the efficiency of a production process. It can be used to identify areas where resources are being wasted and to identify opportunities for cost savings. It can also be used to compare different production processes and to identify areas where improvements can be made. 
  
  Tips & Tricks: 
  When calculating the consumption rate, it is important to ensure that all costs associated with the production process are included in the calculation. This includes direct costs such as materials and labor, as well as indirect costs such as overhead and depreciation. 
  
  Related Information: 
  The consumption rate is closely related to other measures of efficiency such as productivity and utilization rate. It is also related to cost accounting concepts such as absorption costing and variable costing.