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SAP PRODUCT COSTING CONFIGURATION. The target costs can be calculated as follows: On the basis of a preliminary cost estimate for the product cost collector On Page 4 of 57 sapficoconsultant.com. INTRODUCTION. In this e-book we cover the various master data required for the product costing module. SAP offers variance analysis on the input (consumption, overhead allocation, actual expenses) side and output. (production quantity or valuation) side. Input Product costing module of SAP has eased out all hassles of costing a Product Cost primarily consists of Material Cost, Labor cost and Overhead cost.All other products mentioned are trademarks or registered trademarks of their respective companies. 2. April 2001. Page 3. SAP AG. Product Cost Controlling In this introduction to product costing with SAP S/4HANA, we'll start with a review of the fundamental principles. Then, you'll learn how SAP's new enterprise The information contained in this document is subject to change without notice. SAP AG reserves the right to make any such changes without obligation to notify