1. SAP Glossary
  2. EPM IM Flying Profit&Loss (Leopard)
  3. fully absorbed cost unit rate


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


SAP Term: fully absorbed cost unit rate


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  • Key Concepts: 
    Fully absorbed cost unit rate is a term used in SAP's Enterprise Performance Management (EPM) and Investment Management (IM) modules. It is a measure of the total cost of producing a unit of output, including all direct and indirect costs associated with the production process. This rate is used to calculate the profitability of a product or service, as well as to determine the cost of goods sold.
    
    How to use it: 
    The fully absorbed cost unit rate is calculated by dividing the total cost of production by the number of units produced. This rate can then be used to calculate the profitability of a product or service, as well as to determine the cost of goods sold. It can also be used to compare different products or services in terms of their profitability.
    
    Tips & Tricks: 
    When calculating the fully absorbed cost unit rate, it is important to include all direct and indirect costs associated with the production process. This includes labor costs, materials costs, overhead costs, and any other costs associated with producing the product or service.
    
    Related Information: 
    The fully absorbed cost unit rate is closely related to other measures of profitability such as gross margin and net margin. It can also be used in conjunction with other financial metrics such as return on investment (ROI) and payback period.
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