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19 Αυγ 2015 · The target costs are typically calculated based on the itemization of the used cost estimate. The calculation then is: Target costs = planned costs / planned output quantity or lot size * actual output quantity
18 Ιουν 2020 · The target costs are calculated based on different target cost planning categories. For how you could Calculating Variances, please refer to this document. please note, Only the variances calculated on the basis of target cost version 0 can be settled to profitability analysis.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of a service unit (such as the planned cost of a production order) and the control quantities (such as the yield delivered to stock).
You are working with BEI scenario. After variance calculation, you found the target cost shown in Display Production Order - Menu - Goto - Cost Analysis is different with the value shown in app Production Cost Analysis.
Target Costing. You want to evaluate the performance of your cost centers. You notice that the comparison of the planned costs with the actual costs shows whether planned costs have been exceeded. But the question arises: are the actual costs incurred justified?
In target cost calculation, the costs can be broken down into fixed and variable costs. A requirement for this function is that the price control indicator in the material’s master record is set to S (standard price) and that a current standard cost estimate for the material exists.
Target cost used for variance settlement is always calculated based on the current standard cost estimate. It can be viewed in reporting apps such as Analyze Production Costs - Event-Based. It corresponds to the old target cost version 0 but doesn't need any prerequisite configuration.
