What is item cost in SAP (SBO - SAP Business One)?

SAP Term: item cost

• Component: SBO

• Component Name: SAP Business One

• Description: The cost of the item as calculated according to the valuation method defined for the item.

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• Key Concepts: 
  Item cost is a term used in SAP Business One (SBO) to refer to the total cost of an item, including the cost of materials, labor, and overhead. It is used to calculate the price of an item for sale and to determine the profitability of a product. 
  
  How to use it: 
  In SBO, item cost is calculated by adding up the costs associated with each component of the item. This includes the cost of materials, labor, and overhead. The total cost is then used to determine the price of the item for sale. 
  
  Tips & Tricks: 
  When calculating item cost, it is important to consider all costs associated with the item, including those that may not be immediately apparent. This includes costs such as shipping and taxes. 
  
  Related Information: 
  Item cost is closely related to other terms such as gross margin and markup. Gross margin is the difference between the selling price and the item cost, while markup is the percentage increase in price from the item cost.