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## calculated
costs

### Product Cost
Controlling (CO-PC)

Costs calculated for a sales order by results analysis using a base for the order's progress towards completion.

For example, if this base is revenue, the calculated costs are the actual costs multiplied by the planned revenue and divided by the planned costs.

If this base is the quantity produced, the calculated costs are the actual quantity multiplied by the planned costs per quantity unit.

The methods described above for determining the calculated costs are used as a basis for the realization of profit on orders whose planned revenue is greater than their planned cost. If the calculated costs are determined without profit realization, the calculated costs are always equal to the actual revenue. This is because without profit realization, the ratio of planned revenue to planned costs is assumed to be 1.

Results analysis compares the calculated costs with the actual costs, and calculates either of the following:

- Revenue in excess of billings (actual costs greater than calculated costs)

- Reserves for unrealized costs (actual costs less than calculated costs)