Example: Determining Your Cost Structure Strategy

These examples illustrate the different strategies for setting up the books and profiles, along with the steps that are necessary for each option. When deciding on an approach, be sure to consider future as well as current accounting and management requirements. The scenarios for cost structure strategies include:

• Using one cost profile and one book.

• Using different cost profiles in a business unit.

• Using different cost profiles in different business units.

• Using multiple simultaneous costing methods in one business unit.