term variance planning help what is
Meaning of planning variance. What is it: variance can be calculated by comparing the target costs.

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Definition planning variance

PLANNING VARIANCE title: planning variance (CO-PC) (SAP Library - Glossary)
PLANNING VARIANCE category: Product Cost Controlling (CO-PC)
PLANNING VARIANCE explained:

A variance that arises in the planning stage.

The planning variance can be calculated by comparing the target costs calculated in the standard cost estimate for the material to the planned costs for a manufacturing order.

This comparison is made on the basis of the planned order quantity.

You analyze planning variances for such purposes as optimizing the quantity structure or the lot size of an order.

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