Bills of Material automatically performs a single level cost rollup for each new configuration item to establish accurate standard costs. The Laptop Computer configuration in the example would get a frozen standard cost equal to the sum of the costs of the components in its single level bill, any resource costs in its routing, plus any material overhead. Each new configuration item automatically inherits the material overheads of the model on which it is based.
Configuration items do not pick up any cost from models or option classes in their single level bill. Models and option classes are only considered by forecast consumption and master schedule relief functions.