What is the use of cost component in Baan system?

It enables you to classify your production cost breakdown in very detailed manner. You need to ask your accounting consultant to ask the accounting manager at your client on how he/she would like the production cost to be broken down. From that information, you can structure the cost component in raw material/semi finished good/finished good as well as in work centre hourly cost and subcontracting cost to handle that need

Rgds,
Paul