SAP Product Costing Interview Questions And Answers

Q. How Does Sap Go About Costing A Product Having Multiple Bill Of

Materials Within It?
Answer : SAP first costs the lowest level product, arrives at the cost
and then goes and cost the next highest level and finally arrives at the
cost of the final product.

Q. What is ‘Activity-Based Costing’?

Ans. ‘Activity-Based Costing,’ popularly known as ABC, helps you to

view overhead costs from the point of business processes. The result is
you will be able to optimize costs for the entire business process. As a
single business process, activity-based costing will cut across several
cost centres and will give you an enhanced view of the costs incurred.