How do you use the results of a released standard cost estimate? There are 2 correct answers to this question.

Question

Options

• ATo valuate the material stock quantity
• BTo calculate the price of an activity type
• CTo determine a material sales price in Sales and Distribution
• DTo calculate production overhead

• A
  81% (34)
• B
  12% (5)
• D
  7% (3)

Explanation

Releasing a standard cost estimate in SAP marks it as the official standard price, which immediately updates the material master price field (Option A) - this is the primary purpose, as all stock valuations and inventory postings use this price going forward. Option C is correct because SD pricing conditions can reference the standard cost as the basis for calculating a material's sales price, enabling margin-based pricing directly from the cost estimate.

Option B is wrong because activity type prices (e.g., machine hours, labor) are set through cost center planning in Controlling - they feed into the cost estimate, not the other way around. Option D is wrong because production overhead is determined by overhead costing sheets and rates applied during the cost estimate calculation itself, not as a result of releasing it.

Memory tip: Think "Released = Published Price" - releasing locks in the standard price for two audiences: internal (inventory/stock valuation) and external (customers via SD pricing). B and D are inputs to the cost estimate, not outputs of releasing it.

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