All major inquiries of costs and revenues are based on dimensions. In a typical cost accounting setup you will use the following dimensions:

  • Cost center

  • Purpose

Cost center accounting

Cost center accounting collects and structures overhead costs according to responsibility areas. It also allocates and distributes costs to other cost centers or purposes.

Purpose accounting

Purpose accounting calculates the production costs per purpose. Examples of purposes are items, item groups, orders, and projects.

Note Note

Before you can implement and use Cost accounting, you must know which dimensions are used in Cost accounting.

See Also