Unit 4: Management Accounting (CO)
You are currently working on cost center planning in SAP ERP Management Accounting. Which of the following can serve as inputs to cost center planning? (3 correct answers) a. Manual entries b. Formulas c. HCM planning d. CO-PA e. CO-PCA
Answer: A, B, C Manual Entries, Formulas, HCM planning
What are the 4 typical uses of internal orders?
Answer: 1. Overhead orders (used to monitor costs incurred for a particular purpose such as conducting trade fairs or tracking maintenance or repair work) 2. Investment orders (used to monitor costs incurred during the construction of assets such as building a storage facility) 3. Accrual orders (used to offset postings of accruied costs in CO) 4. Orders with Revenue (used to replace the cost accounting parts of SD customer orders if SD is not being used)
You are preparing an assessment in SAP ERP Management Accounting. Which type of cost element is used to perform an assessment? (one correct answer) a. Primary b. Secondary c. Revenue d. Cost object
Answer: A, B Primary and Secondary
Which of the following can be represented by a profit center in SAP? (3 correct answers) a. An organizational unit within the company b. A line of business c. A geographical location d. An assignment monitor e. A vendor
Answer: A, B, C An organization unit within the company. A line of business. A geographical location.
You are updating the standard price of a material. Which of the following actions must be performed to successfully update the standard price? (3 correct answers) a. Analyze the costs b. Marking c. Releasing d. Confirmation e. Authorization
Answer: A, B, C Analyze the costs, marking, releasing
Your colleagues have asked you assistance in explaining product cost controlling in SAP ERP Management Accounting. You begin by explaining the different components of product cost controlling. Which of the following will you say are components of product cost controlling? (3 correct answers) a. Product cost planning b. Cost object controlling c. Cost center planning d. Actual costing/material ledger e. Activity based costing
Answer: A, B, C Product cost planning. Cost object planning. Actual costing/material ledger
An Internal Order is an extremely flexible tool in SAP ERP Management Accounting that can be used for a wide variety of purposes to track costs and, in some cases revenues, within a controlling area. Which of the following order types are internal orders? (2 correct answers) a. Result analysis orders for posting accrual costs in CO. b. Capital investment orders for creating assets. c. Maintenance orders d. Sales orders for make-to-order products.
Answer: A, B, C Result analysis orders for posting accrual costs in CO. Capital Investment orders for creating assets. Maintenance orders
Which of the following are the three types of currencies that can be used in SAP Management Accounting? a. Controlling area currency b. Company code currency or object currency c. Chart of accounts currency d. Transaction currency e. International currency
Answer: A, B, D Controlling area currency. Company code currency or object currency. Transaction currency
Which of the following is true about fixed values and total values of statistical key figures (2 correct answers) a. Fixed values are valid as of the posting period, and in all subsequent posting periods of the fiscal year. b. Total Values are valid as of the posting period, and in all subsequent posting periods of the fiscal year. c. Totals values are valid only in the posting period in which they are entered. d. Fixed values are valid only in the posting period in which they are entered
Answer: A, C Fixed values are valid as of the posting period and in all subsequent posting periods of the fiscal yr. Total values are valid only in the posting period in which they are entered.
A client has asked you to explain the use of currencies in SAP ERP Management Accounting. What currencies will you say can be used in management accounting? (3 correct answers) a. Transaction b. Operative c. Object currency d. Controlling area e. Consolidation
Answer: A, C, D Transaction. Object Currency. Controlling Area.
Which of the following fields are required to create a cost center in management accounting (CO)? (2 correct answers) a. Hierarchy area b. Description c. User responsible d. Company code
Answer: A, D Hierarchy Area, Company Code
You are about to create a statistical key figure to help with the distribution of costs in SAP ERP Management Accounting. Which of the following are examples of fixed (Type 1) statistical figures? (2 correct answers) a. Square footage of a building b. Hours of maintenance labor c. Kilowatt hours used d. Number of network connections
Answer: A, D Square footage of a building & Number of network connections
What type of cost element do you use when passing costs from a sender to receivers utilizing an assessment? (Choose the correct answer) a. General Ledger Accounts b. Secondary Cost Elements c. Primary Cost Elements d. Overhead Elements
Answer: B Secondary Cost Elements
You want to plan costs on internal orders in SAP ERP Management Accounting. Which of the following options are available to you to plan costs on internal orders? (3 correct answers) a. Activity planning b. Unit costing c. Primary and secondary costs d. Overall planning e. Easy cost planning
Answer: B, C, D Unit costing. Primary and secondary costs. Overall planning
To enable ______________, you need to specify which Cost Center provides which Activity Types at what price. a. Statistical key figures b. Tracing factors c. Internal activity allocations d. Profit center accounting e. Cost Center planning
Answer: C Internal activity allocations
A _____________ allows organizations to create financial statements for organizational structures defined internally. a. Company Code b. Cost Center c. Profit Center d. Segment
Answer: C Profit Center
List the true cost objects
Answer: Cost centers, Real Internal Orders, Real Projects, Networks, Cost Objects, and Profitability Segments
In cross-company code cost accounting, which of the following is true? a. the controlling area and the company codescan have different currencies. b. The currency of the controlling area can be the sameas that for a company code. c. The currency of the controlling area can differ from the currency of all the companycodes assigned to the controlling area. d. All of the above
Answer: D All of the above
Which Organizational Structure is required if you want to use Profitability Analysis? (Choose the correct answer) a. Business Area b. Company Code c. Controlling Area d. Operating Concern
Answer: D Operating concern
Which of the following management accounting (CO) components requires an operating concern? a. Product Cost Accounting b. Profit Center Accounting c. Overhead Cost Controlling d. Profitability Analysis
Answer: D Profitability Analysis
A secondary cost element is linked to a G?L account to ensure that expense posting pass to CO. True or False.
Answer: False A primary cost element is linked to a G/L account. A secondary cost element is used within CO to allocate costs between objects.
When allocating cost centers using assessments, the original cost elements are used to track the movement from sender to receiver. True or False
Answer: False Periodic reposting and distribution used the original cost elements while assessments use secondary cost elements.
The FI module is the only source of expense and revenue postings in CO. True or False
Answer: False Sales and Distribution, Materials Management, and Human Capital Management can also transfer expense and revenue postings to CO.
What is the difference between marking a standard cost estimate and releasing a standard cost estimate? ________________
Answer: Marking enables the results of the standard cost estimate to be updated in the future standard price in the material master. Releasing a standard cost estimate enables the future standard price to be updated as the Current standard price and the Current planned price in the material master.
List the two organizational unit defined in Controlling. ___________ and _____________
Answer: Operating Concern and Controlling Area
What are the requirements for assigning multiple company codes to a controlling area.
Answer: The company codes must have the same operating chart of accounts and the same fiscal year variant.
Describe the goal of Profit Center Accounting.
Answer: The goal of profit center accounting is to measure the profitability of areas of responsibility within the organization.
Describe the goal of Profitability Analysis.
Answer: The goal of profitability analysis is to determine the profitability of market segments
14. Profitability Analysis (CO-PA) is used with the operating concern. a. True b. False
Answer: True
A controlling area can have only one standard hierarchy (True/False).
Answer: True