Answer Posted / Afjal Ali Ansari
Costing in SAP PP (Production Planning) refers to the process of determining the costs associated with production. This includes direct material costs, direct labor costs, overhead costs, and scrap costs. Costing can affect PP by influencing the profitability analysis of production orders, which in turn helps in decision making regarding production planning and control. The costing is primarily affected by the costing method chosen (Standard, Actual, or Weighted-Average), work center rates, and material and labor costs.
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