standard cost estimate

Product Cost Controlling (CO-PC)

The most important type of cost estimate in material costing. Forms the basis for profit planning or product costing where the emphasis is on determining the variances.

A standard cost estimate for each product is usually created once at the beginning of the fiscal year or new season.

Standard cost estimates calculate the standard prices for semifinished products and finished products. The costs calculated in standard cost estimates are used to valuate materials with standard price control.