Cost Component Split for the Cost of Goods Manufactured 
Definition
A report that enables you to do the following:
Show the value added for each manufacturing level
Compare the material cost estimates
Use
Typical
cost components
of the cost component split for the cost of goods manufactured are raw materials, internal activities, external activities, material overhead, and so on. You define the structure of the cost components for the cost of goods manufactured in Customizing. For further information, see the Implementation Guide for Product Cost Controlling under
Product Cost Planning
Basic Settings for Material Costing
.
Example
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In this example, the cost of goods manufactured are assigned to five cost components (raw materials, labor production, setup production, machine production, and material overhead). This structure enables the costs of assemblies 100-100, 100-200, and so on to be transferred into the cost estimate for material P-100 as raw materials costs, production costs, overhead costs and so on, instead of as material costs.
The cost component split thus enables an analysis to be made of the value added at each manufacturing level. You can switch from the reports for the upper level of the cost estimate to the lower level.
With the upper level report, you can display the costs that occurred with assemblies 100-100, 100-200 and so on for material P-100. The costs of the subordinate assemblies are added together to make the total of the lower level.
With the lower level report, you can view the alternative display of the costs for P-100. In this report, the costs of assemblies 100-100. 100-200 and so on are displayed broken down into cost components. The costs of the assemblies are added together to make the total of the upper level.
Example
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