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

SAP Term: fully absorbed unit rate

• Component: EPM-IM-FPL

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

• Description: The cost per unit of consumed resource, which is calculated by dividing the total cost of supplying the resource by the consumed resource units.

Smart SAP Assistant

• Key Concepts:
  Fully absorbed unit rate is a concept used in SAP's EPM-IM-FPL (EPM IM Flying Profit&Loss) module, also known as Leopard. It is a method of calculating the cost of a product or service based on the total cost of production, including all overhead costs and other expenses. This method allows for a more accurate calculation of the true cost of production.
  
  How to use it:
  The fully absorbed unit rate is calculated by dividing the total cost of production by the number of units produced. This calculation can be used to determine the cost of each unit produced, as well as the total cost of production. It can also be used to compare the cost of different products or services, as well as to determine the profitability of a particular product or service.
  
  Tips & Tricks:
  When calculating the fully absorbed unit rate, it is important to include all overhead costs and other expenses in the calculation. This will ensure that the true cost of production is accurately reflected in the calculation. Additionally, it is important to consider any discounts or other incentives that may be available when calculating the fully absorbed unit rate.
  
  Related Information:
  The fully absorbed unit rate is closely related to other concepts such as marginal costing and absorption costing. Marginal costing is a method of calculating costs based on variable costs only, while absorption costing takes into account both variable and fixed costs. Additionally, fully absorbed unit rate can be used in conjunction with other methods such as activity-based costing and target costing.