Cost Component Views in Material Costing 
Use
You can display the costing results in various views. The cost component view is one of these views. Examples of cost component views are:
Cost of goods manufactured
Cost of goods sold
Prerequisites
You assign the cost components to a cost component view in Customizing for Product Cost Planning.
Features
The following graphic details the types of report available:
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The costing results, which are contained in reports such as the itemization and the cost component split, are displayed in various cost component views.
Example
For Profitability Analysis, the view for the cost of goods sold determines which costs are compared with the sales revenues to calculate the contribution margin for each product.
For Materials Management, the view for stock valuation determines which costs go into the standard price and the inventory cost estimate.
Also affecting Materials Management is the view for tax-based inventory valuation, which determines which costs are included in the inventory cost estimate based on tax law.
When you define a cost component view in Customizing for Product Cost Planning, you enter a name for the cost component view and define which cost components are contained in the cost component view.
Example
The cost component view Cost of goods sold contains all the cost components that are indicated as the cost of goods manufactured and sales and administration costs.
With the cost component view in Customizing for Product Cost Planning, you can also define what costs are used in the calculation of material overhead surcharges.
Example
You want to calculate material overhead for the semifinished products used in the finished product. The cost estimate for the semifinished product contains costs such as the cost of goods manufactured and sales and administration costs.
In Customizing for Product Cost Planning, you use the calculation base in the costing type to specify that the applied material overhead for the semifinished products should only be calculated on the basis of the cost of goods manufactured. Overhead is not applied to the sales and administration costs for the semifinished product.
See also:
Implementation Guide (IMG) for Product Cost Planning