The following are considered in costing, 1) cost of materials that you have issued for order
2) activity you have performed in terms of labour hours that you entered while confirming the order (the rates for the labour are defined in the activity planning tables of controlling module)..which is generally associated with a formula key and attached to a workcenter that is linked to a cost center also 3) overhead as applicable with respect to that cost center based on a predetermined cost center planning and its rate...
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