Standard Cost Centers Rates
In this form, it is possible to enter (via the New button) fixed standard rates that are not calculated through defined ratios between the result of a reclassification model and the result of a corporate center.
These rates will then be used by the cost drivers (in particular by the distribution criterion Reversion to standard rate) to value the movements and results of the centers typically moved at physical quantities and thus not economic.
To code a fixed rate, we need to enter:
- an Area of analysis (for example, Final, rather than Budget)
- the Corporate Center of reference (typically a center valued at physical quantities)
- a Code for the rate
- a Description of the rate.
In the grid below we will then enter the details of the rate:
- The reference Year
- the From Period and To Period range
- the Fixed value of the rate
- the Variable value of the rate
The fixed and variable quota refers to the distribution of controlling data into fixed and variable costs, which is set starting from the Chart of Accounts through the Variability field and the Variability Cost Centers table.
Based on the definition of the variability percentage, each economic movement taken from an mid-year closing is divided into fixed and/or variable quota. It could thus be 100% fixed, or 100% variable, or for example 40% fixed and 60% variable. The rates will therefore separately value the fixed and variable components of the cost.