| 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 components
Fields | Description
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 cost price, 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: Material Costs Operation Costs Surcharge on Material Costs Surcharge on Operation Costs WIP Transfer Costs General Costs Note If you use Assembly Control (ASC), you cannot use cost components of the General Costs type. Related topics Cost components in Manufacturing
Cost Type | The cost type defines the elements that make up the cost price 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. Related topics Cost components in Manufacturing