on 09-24-2008 1:25 PM
Hi Gurus,
can anyone explain me the following sentence in primary cost planning
You can only plan activity-specific primary costs when the corresponding activity outputs have been planned for the sender cost centers .
HI,
Planning primary costs involves entering those costs that arise from the consumption of goods and services supplied to the organization from external (as opposed to internal) sources.
Primary costs include:
Labor costs
External services
Material costs
Operating supplies
Accrual costs
In primary cost planning, you can enter costs and consumption quantities for each cost center/cost element. This means that primary costs can be planned by quantity, as well as by value.
You can find the documents related with that in SAP help also.
I hope, it helps
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good answer
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Hi, The Primary costs are planned by two ways. Some Primary Cost Elements shall not be used against the activity types and hence, they are independent of activity types and are always fixed costs. Whereas some primary cost elements are based planned with reference to the activity types. This is activity-dependent or activity-specific primary cost planning. This is updated as variable costs. Trust this helps much! Cheers! Tkx. Pl revert if your query is not answered yet.
Edited by: Ashok Singh on Sep 25, 2008 2:33 PM
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