What is cost component in SAP PLM-PLC - Product Lifecycle Costing?

SAP Term: cost component

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: A grouping of account groups which is used to analyze the costs, to do the following, for example: Make the cost distribution of a material, an activity type, or a business process transparent Group the costs of a material according to the requirements for material valuation and profitability analysis

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• Key Concepts: 
  Cost component is a term used in SAP Product Lifecycle Costing (PLM-PLC). It is a way of breaking down the cost of a product into its individual components. This allows for more accurate cost analysis and better decision making. 
  
  How to use it: 
  In SAP PLM-PLC, cost components are used to analyze the cost of a product. This is done by breaking down the cost into its individual components, such as materials, labor, overhead, etc. This allows for more accurate cost analysis and better decision making. 
  
  Tips & Tricks: 
  When using cost components in SAP PLM-PLC, it is important to ensure that all costs are accurately accounted for. This includes both direct and indirect costs. Additionally, it is important to consider the impact of inflation when analyzing costs over time. 
  
  Related Information: 
  Cost component is related to other terms such as cost object and cost element. Cost object is a term used to describe an item or service that has a cost associated with it. Cost element is a term used to describe an individual component of the cost of an item or service.