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

fully absorbed cost - Overview

• Component: EPM-IM-FPL

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

• Description: The indirect costs allocated to transactions using the fully absorbed cost unit rate.

fully absorbed cost - Details

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  Key Concepts: 
  Fully absorbed cost is a term used in SAP's EPM-IM-FPL (EPM IM Flying Profit&Loss) module, also known as Leopard. It is a cost that has been completely allocated to a particular product or service. This cost includes all direct and indirect costs associated with the production of the product or service. 
  
  How to use it: 
  In order to calculate fully absorbed cost, you must first identify all of the direct and indirect costs associated with the production of the product or service. This includes labor, materials, overhead, and any other costs associated with the production process. Once these costs have been identified, they must be allocated to the product or service in question. This can be done by using a variety of methods such as activity-based costing or traditional costing methods. 
  
  Tips & Tricks: 
  When calculating fully absorbed cost, it is important to ensure that all costs are accurately allocated to the product or service in question. This will ensure that the cost is accurately reflected in the final price of the product or service. Additionally, it is important to keep track of any changes in costs over time as this can affect the final price of the product or service. 
  
  Related Information: 
  For more information on fully absorbed cost and other related topics, please refer to SAP's official documentation on EPM-IM-FPL (Leopard).