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

SAP Term: price component

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: A part of the overall price. Each price component is assigned to an individual account in order to show where each portion of the price comes from. For example, a material price might be split into the following price components: raw material, labor, overhead, and storage.

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• Key Concepts: 
  Price component is a term used in SAP Product Lifecycle Costing (PLM-PLC). It is a cost element that is used to calculate the total cost of a product throughout its lifecycle. Price components can include raw materials, labor, overhead, and other costs associated with the production of a product. 
  
  How to use it: 
  In SAP PLM-PLC, price components are used to calculate the total cost of a product throughout its lifecycle. This includes the cost of raw materials, labor, overhead, and other costs associated with the production of a product. The price component can be used to determine the profitability of a product and to identify areas where cost savings can be made. 
  
  Tips & Tricks: 
  When using price components in SAP PLM-PLC, it is important to ensure that all costs associated with the production of a product are accurately accounted for. This includes both direct and indirect costs such as raw materials, labor, overhead, and other costs associated with the production of a product. 
  
  Related Information: 
  Price components are closely related to other SAP terms such as cost centers and cost objects. Cost centers are used to track costs associated with specific activities or departments within an organization. Cost objects are used to track costs associated with specific products or services.