Planned cost/target cost/control cost

Question

Dear Expets,
Ps guide me on the below.
Difference between - planned cost/target cost/control cost and Plan qty/target qty/control qty in MTS or MTO.
your response will be highly appreciated.
regards
Raman Rana
Moderator: Please, avoid asking basic questions

Answer 1

Dear Raman,
planned costs:
The costs anticipated for a particular undertaking (such as an order).
Target costs:
The costs expected to be incurred when a specific quantity is produced.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of a service unit (such as the planned cost of a production order) and the control quantities (such as the yield delivered to stock).
Target costs can be used for purposes such as:
u2022     To determine variances
u2022     To valuate work in process
u2022     To valuate unplanned scrap 
Control costs:
The costs that are compared against the target costs when the variances are calculated.
In Overhead Cost Controlling (CO-OM), the control costs are always the actual costs.
In Cost Object Controlling (CO-PC-OBJ), the control costs are either the actual costs less the work in process and scrap or the cost calculated in the preliminary cost estimate for the order, depending on the target cost version.
br, Guido