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what is cost component structure both splitting and
switching?
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Answer Posted / kaustav
Splitting structure : If a cost center provides two or more
activities, then we define a splitting structure to inform
the system to break up the cost into the activities tagged
to the CC through the splitting structure
Switching structure ; If we do not want to retain all the
cost components of a cost center to the primary cost center
we use a switching structure. For example, we have a
summarization cost center in which labor, overheads and
materials are charged. the same can be trfd to the primary
cost component structure wherein the same will be added to
respective cost components. However if we want to retain all
the cost components as single component say Energy, we
create a switching structure in which we assign all the
elements to the energy component. In the planning layout, we
assign this switching structure to the required CC
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