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

SAP Term: theoretical unit rate

• Component: EPM-IM-FPL

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

• Description: The cost per unit of available resource, as opposed to consumed resource.

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• Key Concepts: 
  Theoretical 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 rate used to calculate the cost of a product or service based on the amount of resources used to produce it. The theoretical unit rate is calculated by dividing the total cost of production by the total number of units produced. 
  
  How to use it: 
  The theoretical unit rate can be used to determine the cost of a product or service. It can also be used to compare the cost of different products or services, as well as to identify areas where costs can be reduced. 
  
  Tips & Tricks: 
  When calculating the theoretical unit rate, it is important to take into account all costs associated with production, including labor, materials, and overhead. Additionally, it is important to ensure that all costs are up-to-date and accurate in order to get an accurate calculation. 
  
  Related Information: 
  The theoretical unit rate is closely related to other concepts such as cost accounting and activity-based costing. Additionally, it can be used in conjunction with other methods such as break-even analysis and pricing strategies.