Price calculation enables you to calculate prices as a cost component split, as well as normal iteration. This means the distribution of the allocation price for an activity type to a maximum of 40 cost elements. These cost elements represent either one of the following:

• Individual cost components (such as wages, salaries, or operating supplies).
• The costs of complete cost centers (such as energy, or maintenance).

The following example describes Customizing for setting up the cost component split. Then the assignment of a switch layout is explained, followed by the split report, which displays the results of price calculation with a cost component split.