Terp10 Unit 04 - Management Accounting

Front 1

List the master data created in Cost Center Accounting (4).

Back 1

1. Cost Elements
2. Hierarchy
3. Cost Center
4. Activity Types

Front 2

A company is assigned to how many controlling areas?

Back 2

One.

Front 3

What needs to be the same if multiple company codes are assigned to the same controlling
area? (2)

Back 3

1. Same chart of accounts
2. Same Fiscal variant

Front 4

What is a standard cost estimate used for? (2)

Back 4

1. Benchmark for cost object Controlling/Variance Calculations
2. Used in profitability analysis to show the cost of sales by valuating the quantity billed.

Front 5

List the different methods to plan internal orders. (3)

Back 5

1. Overall planning
2. Primary/secondary cost and revenue planning
3. Unit costing

Front 6

What is needed to post an expense in FI to a cost center?

Back 6

You need to have the FI/GL ID set up as a primary cost element on the controlling side and the cost center id to put it into the GL and the GL account #.

Front 7

What is the difference between a real and a statistical cost object? (2)

Back 7

1. Real cost objects can send and receive objects during cost allocation.
2. Statistical are for informational purposes only.

Front 8

T/F - Profitability Analysis analyzes profits and contribution margins for external market segments.

Back 8

True

Front 9

T/F - Secondary cost elements are defined in FI and are used to allocate costs.

Back 9

False

Front 10

T/F - A cost center can be settled.

Back 10

True

Front 11

T/F - An operating concern is always created in CO.

Back 11

False: While never created outside of CO it is only created when doing profitability analysis.

Front 12

T/F - Many controlling areas can be assigned to an operating concern.

Back 12

True

Front 13

T/F - Company codes that are assigned to the same controlling area must have the same operating chart of accounts.

Back 13

True

Front 14

T/F - An internal order is an enterprise object which assists in planning, collecting, settling, and budgeting.

Back 14

True

Front 15

T/F - A profit center is a real cost object.

Back 15

False: It is statistical object

Front 16

T/F - Marking a standard cost estimate re-valuates inventory.

Back 16

False

Front 17

T/F - An Operation Concern is required to do Profitability Analysis

Back 17

True

Front 18

What are the organizational units specific to controlling? (2)

Back 18

1. Controlling Area: Basic organizational unit in controlling. It is a closed entity used for cost accounting.
2. Operating Concern: Represents the structure of external market segments for the enterprise. Several Controlling Areas can be assigned to an Operating Concern.

Front 19

T/F – A plant must be allocated to a company code.

Back 19

True

Front 20

T/F – A company code can belong to more than one controlling area.

Back 20

False

Front 21

T/F - A controlling area and a company code must have the same local currency.

Back 21

False

Front 22

T/F – A controlling area can have only one standard hierarchy.

Back 22

True

Front 23

T/F – The FI module is the only source of expense and revenue postings in CO.

Back 23

False: Sales & Distribution, Materials Management, and Human Capital Management can also transfer expense and revenue postings to CO.

Front 24

Explain the interaction between FI and CO. (4)

Back 24

1. Postings to an expense account in FI can cause cost postings in CO-OM.
2. FI can post revenues directly to CO-PA.
3. Cost flows occur between FI and CO-PC.
4. There is a flow into FI if production costs have been activated as a finished product or WIP.

Front 25

Describe the difference between Cost Center Accounting vs. Activity-Based Costing.

Back 25

1. CCA: Answers the question of where costs occur.
2. ABC: Answers the question of why (for what purpose) costs occur.

Front 26

What are the requirements for assigning multiple company codes to a controlling area? (2)

Back 26

1. The company codes must have the same operating chart of accounts
2. and the same fiscal year variant.

Front 27

What currencies can be used in management accounting? (3)

Back 27

1. Controlling area currency
2. Company Code currency (Object currency).
3. Transaction currency (used for posting a document to Management Accounting).

Front 28

Define primary and secondary cost elements. (2)

Back 28

1. Primary: accounts exist in both FI and CO.
2. Secondary: accounts only exist in CO. They are used for internal CO allocations, such as assessments and settlements.

Front 29

Explain the cost center planning process. (3)

Back 29

1. Can be done manually or with the help of automatic procedures, such as formula planning.
2. Both fixed and variable costs can be planned for each area of responsibility.
3. It is the aim of Cost Center Planning to calculate planning costs to define deviations later and to prepare the allocation to cost bearers.

Front 30

Name three inputs to cost center planning.

Back 30

1. Manual entries
2. Formulas
3. HCM planning

Front 31

T/F – Personnel cost planning is a step in the integrated planning process.

Back 31

False

Front 32

Explain statistical key figures. (2)

Back 32

1. They define some measurable value applicable to Cost Centers, Activity types, Overhead orders, Business Processes, and Profit Centers.
2. Used as an allocation base (Tracing Factor) in overhead cost allocations.

Front 33

Explain allocations.

Back 33

Placing costs where they occur.

Front 34

Assessments (transfer cost within controlling) are accomplished using what type of cost element?

Back 34

Secondary.

Front 35

T/F – When allocating cost centers using assessments, the original cost elements are used to track the movement from the sender to receiver.

Back 35

False: Periodic reposting and distributions use the cost elements while assessments use secondary cost elements.

Front 36

What is a Profit Center? (3)

Back 36

1. A management-oriented organizational unit used for internal controlling purposes.
2. Enable a company to set up PC accounting for products, geographical factors, or functions.
3. PCs allow a company to calculate internal measurements of profitability.

Front 37

Describe the goal of Profit Center Accounting.

Back 37

To measure the profitability of areas of responsibility with the organization.

Front 38

Explain how cost centers link to profit centers. (2)

Back 38

1. The master records of controlling objects contain a profit center field.
2. When PC Accounting is active, the controlling objects (CCs) are linked or assigned to the PC identified in that field.

Front 39

What is the difference between total and fixed statistical key figures? (2)

Back 39

1. Total: Must be entered for each individual period and is useful for values that tend to change each period.
2. Fixed: Useful for statistical key figures that tend to remain constant over time

Front 40

What is a statistical posting?

Back 40

It is an informational posting.

Front 41

Which types of controlling objects can post to FI accounts?

Back 41

MM: Goods Issue & Goods Receipt (GI/GR)

Front 42

What does CO-PA analyze?

Back 42

The profitability of segments in your external market by product, customer, or geographic area.

Front 43

What does EC-PCA analyze? (2)

Back 43

1. Measures profitability of areas of responsibility with the organization.
2. Reflects the success of a given profit center at meeting the profitability goal for which it was given.

Front 44

What is a profit center? (3)

Back 44

1. A PC is a management-oriented organizational unit used for internal controlling purposes.
2. PCs allow you to divide your organization into areas of responsibility and to delegate responsibility to decentralized units.
3. PCs are not real account assignment objects.

Front 45

What is a cost center? (2)

Back 45

1. An organizational unit in a controlling area representing a clearly delimited location where costs occur.
2. You can make organizational divisions on the basis of functional, settlement-related, activity-related, spatial, and/or responsibility-related standpoint.

Front 46

What is the standard hierarchy?

Back 46

Represents all CCs per controlling area.

Front 47

Describe Posting Logic processes:

Back 47

When a Financial Accounting document is created that posts to an expense or revenue account using a corresponding cost element, a Management Accounting document is also created.

Front 48

Name five types of periodic Allocation Techniques:

Back 48

1. Periodic Reporting
2. Assessment
3. Distribution
4. Indirect Activity Allocation
5. Template Allocation

Front 49

T/F – An internal order can be real or statistical.

Back 49

True: If it is a statistical posting, the cost object that the internal order is attached to would receive the real posting.

Front 50

T/F - Settlement may occur at the end of each period, or at the end of the order’s life.

Back 50

True: Depending on the type of order and its business purpose.

Front 51

Each internal order must have a ________________ rule.

Back 51

Settlement

Front 52

Why do the master records of controlling objects contain a profit center field? (2)

Back 52

1. The controlling objects are linked or assigned to the profit center identified in the field.
2. Note that a profit center is not a real account assignment object!

Front 53

Explain Profit Center Planning: (3)

Back 53

1. It is part of short-term planning that covers one fiscal year.
2. Planning data is transferred to the profit centers from cost centers, internal orders, profitability analysis, and product cost planning.
3. The planning data can then be modified directly in the profit centers.

Front 54

What is a Profitability Segment?

Back 54

A combination of characteristic values

Front 55

What is a Cost Rollup?

Back 55

Used to ensure that the cost of goods manufactured, material and production costs, of all materials in a BOM are included in the cost estimate of the higher –level material

Front 56

What is Management Accounting? (2)

Back 56

1. Contains all the functions necessary for effective cost and revenue controlling.
2. It covers all aspects of management controlling and includes many tools for compiling information for company management.

Front 57

What five other five SAP ERP Applications are integrated with Management Accounting (CO)? (5)

Back 57

1. Financial Accounting - FI
2. Sales Order Management - SD
3. Human Capital Management - HCM
4. Materials Management - MM
5. Manufacturing area of Logistics

Front 58

Costs from ________________ and ________________ together with revenue can be used in ______________ to calculate operating results.

Back 58

1. Overhead Cost Controlling CO-OM
2. Product Cost Accounting CO-PC
3. Profitability Analysis CO-PA

Front 59

_________________ is a primary source of data for Management Accounting.

Back 59

Financial Accounting

Front 60

What are the five main components of Management Accounting? (5)

Back 60

1. Profitability Analysis

2. Profit Center Accounting

3. Overhead Cost Controlling

4. Product Cost Controlling (Accounting)

5. Cost Element Accounting

Front 61

If you’re interacting with CO you must have a _____ and ______ account.

Back 61

1. Sender
2. Receiver

Front 62

T/F - If you’re interacting with FI it can just be 1 way interaction.

Back 62

True

Front 63

The main components of management accounting are: (5)

Back 63

1. Classify costs and recon. data (Cost Element Acct)
2. Control O/H cost and Allocate (O/H Cost Controlling)
3. Evaluate COGS (Product Cost Accounting)
4. Analyze Profit (Profitability Analysis)
5. Analyze Profit Centers (Profit Center Accounting)

Front 64

Profit Center Accounting receives

Back 64

Statistical cost posting

Front 65

What is the basic organization unit in management accounting?

Back 65

Controlling area.
You can only allocate cost within a controlling area.

Front 66

The profitability analysis (CO–PA) is used with the ?

Back 66

Operating concern. You can assign several controlling areas to each operating concern.

Front 67

What are the three currencies used in Management Accounting? (1)

Back 67

1. Controlling area currency
2. Company code currency
3. Transaction currency (used for MA)

Front 68

Secondary cost elements are defined in?

Back 68

The CO and are used for internal CO allocations. They don't have a corresponding GL account in FI.

Front 69

During allocations the receiver is _____ and the sender is _____ for the quantity and costs.

Back 69

Debit
Credit

Front 70

For a direct activity allocation, the plan price for the combination "_______ / __________" is used for the calculation.

Back 70

"cost center / activity type"

Note: it can be manually entered or automatically.

Front 71

A measureable quantity that can be assigned to cost centers, activity type, O/H orders, business process and Profit Centers. You define a statistical key figure as a? (2)

Back 71

Type 1 (Fixed Value) or
Type 2 (Total Value)

Front 72

The aim of Cost Center Planning is to?

Back 72

Calculate planning cost to define deviations and prepare the allocation to cost bearers.

Front 73

What is created when a FI document is posted to a corresponding cost element?

Back 73

Management accounting document.

Front 74

The management accounting document contains

Back 74

1. MA object that was posted
2. Cost element
3. Posted amount

Front 75

Management accounting document debits the controlling object using the corresponding cost element of the same number and no credit. It's a single sided entry. (T/F)

Back 75

True

Front 76

When transactions that are created within management accounting are balance entries? (T/F)

Back 76

True – The sender is credited and the receiver is debited.

Front 77

True objects can act as sending or receiving objects during allocations. What about the statistical?

Back 77

Statistical objects cannot allocate costs to other objects. It only collects.

Front 78

Each segment of an assessment cycle is assigned to:

Back 78

An assessment cost element (secondary cost element - category 42).

Front 79

The original cost elements are not displayed on the receivers? (T/F)

Back 79

True – It is useful when the breakdown of costs is unimportant to the receiver.

Front 80

An Assessment can be reversed as often as needed?

Back 80

True

Front 81

What are the four categories of an internal order? (4)

Back 81

1. Overhead orders (trade fair)
2. Investment orders (fixed asset)
3. Accrual orders
4. Orders with revenue

Front 82

What are the 3 cost planning levels for planning internal orders? (3)

Back 82

1. Overall planning
2. Primary/Secondary cost and revenue planning
3. Unit costing (more detail planning)

Front 83

Commitment identifies:

Back 83

Cost which will be incurred in the future. You reduce the commitment by posting the goods receipt against the PO.

Front 84

Order settlement is:

Back 84

The process of allocating cost to their final destination at the end. Settlement rules must be defined and it can be allocated to multiple receivers.

Front 85

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)

Back 85

1. Transaction
2. Object currency
3. Controlling area

Front 86

One of the greatest benefits of SAP ERP Management Accounting is the Integrated Planning Process. Your colleagues have asked you to help explain this process. Which one of the following will you say is a step in the integrated planning process?

Back 86

SOP
Product cost planning
Production planning
Cost center planning

Front 87

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?

Back 87

Product cost planning
Cost object controlling
Actual costing/material ledger

Front 88

You are updating the standard price of a material. Which of the following actions must be performed to successfully update the standard price?

Back 88

Analyze the costs
Marking
Releasing

Front 89

You’ve been asked to provide an explanation of some of the organizational levels in SAP ERP. Which of the following statements will you say is true? (one correct answer)
a. A company code can belong to more than one controlling area.
b. A plant must be allocated to a company code.
c. A controlling area and a company code must have the same local currency
d. A business area and a company code are assigned to each other in the enterprise structure in the IMG

Back 89

b. A plant must be allocated to a company code.

Front 90

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

Back 90

a. Transaction
c. Object currency
d. Controlling area

Front 91

A controlling area can have only one standard hierarchy (True/False).

Back 91

True

Front 92

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. SOP

Back 92

a. Manual entries
b. Formulas
c. HCM planning

Front 93

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

Back 93

b. Secondary

Front 94

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.

Back 94

a. Result analysis orders for posting accrual costs in CO.
b. Capital investment orders for creating assets.

Front 95

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

Back 95

b. Unit costing
c. Primary and secondary costs
d. Overall planning

Front 96

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

Back 96

a. Square footage of a building
d. Number of network connections