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how costing is done in pp or how u will know the cost of a
product which is manufactured in ur plant
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Answer Posted / nanduri k. prasad
There are different methods of doing product cost estimate.
e.g., Std. cost estimate or variable cost estimate.
From the BOM and routing the total no of components used
for that product is calculated using the price mentioned in
accouting views and from routings each operation cost is
calculated from the activity types defined in workcenters.
Collectively this cost is displayed in Product cost
estimate as cost of manufacture in the T.code CK 11n.
In case of variable cost, all the variables are considered
for the production order and the actuals are considered for
calculating the product cost. It is also posible to have
cost estimates and actual costs from which we can find the
variances.
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