term hierarchy object cost what is
Meaning of cost object hierarchy. What is it: of cost objects structured in hierarchical form. A.

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Definition cost object hierarchy

COST OBJECT HIERARCHY title: cost object hierarchy (CO-PC) (SAP Library - Glossary)
COST OBJECT HIERARCHY category: Product Cost Controlling (CO-PC)
COST OBJECT HIERARCHY explained:

The business object "cost object hierarchy" contains a number of cost objects structured in hierarchical form.

A cost object hierarchy can be used to analyze target costs, actual costs, and variances in situations where costs cannot be collected at the level of orders or materials.

A cost object hierarchy consists of cost object nodes to which you can assign the following:

Material or plant Material, plant or production process

The assignment to a cost object hierarchy lets you select production cost collectors and manufacturing orders by the node to which they are assigned.

At the level of the cost object hierarchy, price differences can be passed on to inventory and from there to Financial Accounting and Profitability Analysis.

You can also distribute the costs to the assigned orders and settle them from there.

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