A planned cost estimate was created for a bar of chocolate. This product consists of the semifinished product cocoa and the raw material sugar. The activity types production hours, packaging, and mixing are necessary to manufacture the chocolate. In Customizing of Product Cost Planning, a cost component structure was defined with the cost components raw materials, personnel, production, a nd material overhead.
During the period, a production order is created for the material chocolate. For production of the chocolate, the semifinished product cocoa and the raw material sugar are withdrawn from inventory and the production activities are confirmed.
The chocolate is valuated at standard price. At this point in time, the differences have not yet been posted. The single-level differences (due to over- or underconsumption) remain on the order. At this point in time, the actual cost component split matches the cost component split for planned costs and explains the preliminary valuation of the material chocolate.