What is direct cost in SAP EPM-IM-FPL - EPM IM Flying Profit&Loss (Leopard)?

SAP Term: direct cost

• Component: EPM-IM-FPL

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

• Description: A cost that can be used directly in the calculation of profitability without further distribution.

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• Key Concepts: 
  Direct cost is a term used in SAP's EPM-IM-FPL (Flying Profit & Loss) module, also known as Leopard. It refers to the cost of goods or services that are directly related to the production of a product or service. This includes raw materials, labor, and other costs associated with the production process. 
  
  How to use it: 
  In SAP's EPM-IM-FPL module, direct costs are used to calculate the total cost of producing a product or service. This cost is then used to determine the profitability of the product or service. Direct costs can also be used to compare different products or services and determine which one is more profitable. 
  
  Tips & Tricks: 
  When calculating direct costs, it is important to include all costs associated with the production process. This includes raw materials, labor, and other costs such as shipping and taxes. It is also important to consider any discounts or incentives that may be available when calculating direct costs. 
  
  Related Information: 
  Direct costs are just one part of the overall cost structure for a product or service. Other costs such as overhead, marketing, and research and development should also be taken into account when calculating total costs. Additionally, indirect costs such as depreciation and amortization should also be considered when calculating total costs.