What is customer specific cost?

As already discussed, customer-specific costs are those costs that are driven primarily by the needs or demands of a particular customer.

What is a price item?

Item price means the tag, stamp or mark affixed to a stock keeping item which sets forth, in Arabic numerals, the retail price of each item of consumer goods.

What is difference between market price and normal price?

Market price is for a particular time but normal price is for a period of time. Market price is the price prevailing on a particular day or a particular time. Normal price, on the other hand, is the result of long period demand and long period supply.

How do you calculate normal price?

A price that reflects the lowest possible average of the total cost of production with normal profit taken into consideration. It is the equilibrium price that is determined by the interaction of the demand and supply in a perfectly competitive market.

What are the different types of cost categories?

Note: In manufacturing environments, cost categories are known by several other names, such as labor rate codes or machine rate codes. Each cost category has associated cost records and an assigned cost group. Different cost categories are required for different production purposes.

How are cost categories assigned to time and quantity?

The assignment of cost categories to time and quantity can be mandated by company-wide policies that are defined on the Production control parameters page. Each cost category has associated costs that are based on the definition of cost records in a costing version.

How are cost records defined in cost category?

Each cost category has associated costs that are based on the definition of cost records in a costing version. Use the Cost category price page to define the cost records for a specified costing version and site. When the cost record for a cost category is first entered, it has a status of Pending and an intended effective date.

When do you assign a cost center to a category?

When you assign a cost center to a particular category (you do this when creating the cost center), the corresponding lock indicators and allowed values for this category are proposed as default values for this cost center. The above image illustrates how cost center categories might look in a typical organization using SAP systems.