What is 'actual cost' in SAP IS-HT-DRM - Distributor-Reseller-Management?

actual cost - Overview

• Component: IS-HT-DRM

• Component Name: Distributor-Reseller-Management

• Description: The effective cost of purchase to the distributor/reseller for a resale after considering the ship-and-debit claim received from the manufacturer/supplier. Therefore, actual cost = extended cost - cost reduction

actual cost - Details

• 
  Key Concepts: 
  Actual cost is a term used in the IS-HT-DRM Distributor-Reseller-Management component of SAP software. It is the total cost of goods and services that have been purchased and used in a given period. This includes the cost of materials, labor, overhead, and other expenses associated with the production of goods or services. 
  
  How to use it: 
  Actual cost can be used to measure the efficiency of a business’s operations. It can be used to compare the actual cost of goods and services to the budgeted cost, as well as to compare the actual cost to the market price. This information can be used to identify areas where costs can be reduced or improved. 
  
  Tips & Tricks: 
  When calculating actual cost, it is important to include all costs associated with production, including labor, materials, overhead, and other expenses. It is also important to consider any discounts or incentives that may have been received when calculating actual cost. 
  
  Related Information: 
  Actual cost is closely related to other terms such as budgeted cost and market price. It is also related to concepts such as efficiency and profitability. Understanding how these terms are related can help businesses make better decisions about their operations.