Cost Components (tcmcs0148m000)

Use this session to maintain cost components.

Performance aspects

The settings in this session could affect system performance and database growth. For more information, refer to Cost component setup.

Related topics

 

Cost Component

A cost component is a user-defined category for the classification of costs.

Cost components have the following functions:

  • To break down an item's standard cost, sales price, or valuation price.
  • To create a comparison between the estimated production order costs and the actual production order costs.
  • To calculate production variances.
  • To view the distribution of your costs over the various cost components in the Cost Accounting module.

Cost components can be of the following cost types:

  • Operation Costs
  • Material Costs
  • Surcharge
  • General Costs
  • Not Applicable
Note

If you use Assembly Control (ASC), you cannot use cost components of the General Costs type.

Component Type

Specify what the cost component is used for.

Allowed values

  • Detail
  • Collect
  • Aggregated
Cost Type

The cost type defines the elements that make up the standard cost and the valuation price. Cost types indicate the type of costs that must be posted to a cost component.

For cost components for use in Project and Service, the recommended cost component type is Not Applicable.

Fixed / Variable

The cost component is for fixed or variable costs.

Allowed values

  • Fixed
  • Variable
  • Both
Direct / Indirect

The cost component is for direct or indirect costs.

Allowed values

  • Direct
  • Indirect
  • Not Specified
Cost Subtype

The sub type of the standard cost and valuation price that is posted to a cost component.