Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
151 Cards in this Set
- Front
- Back
|
What does management accounting contain?
|
All the functions necessary for effective cost and revenue controlling
|
|
|
How can operating results be calculated to make it possible to establish how profitable various areas are?
|
By flowing costs from overhead cost controlling and product cost accounting into profitability analysis where, together with revenue data, operating results can be calculated.
|
|
|
How does cost element accounting analyze the success of individual profit centers?
|
By classifying costs and revenues and reconciling data between CO and FI
|
|
|
How does overhead cost controlling control and allocate overhead costs?
|
By examing the origin (reponsibility) for costs.
|
|
|
What is an overhead cost?
|
A cost that cannot be directly assigned to a product or service
|
|
|
What is product cost accounting used for?
|
Costing and evaluating the cost of goods manufactured for a product and the cost associated with providing a service or when carrying out a project through its tools for comprhensive analysis of the value-adding processes in an enterprise.
|
|
|
What is profitability analysis?
|
It deals mainly with analyzing the effects of enterprise activities on the external market.
|
|
|
What is profit center accounting?
|
The analyses of the success of the profit centers in the internal market of the enterprise.
|
|
|
What type of cost postings does profit center accounting receive?
|
Statistical cost postings
|
|
|
Within the overhead cost controlling area how can costs be posted?
|
To cost centers, internal orders, and processes from other SAP applications (external costs).
|
|
|
Where can cost centers allocate costs?
|
To other cost centers, to orders, and to processes in ABC.
|
|
|
Where can ABC pass costs to?
|
Cost centers and to orders.
|
|
|
Where can internal orders settle costs to?
|
Cost centers, processes in ABC, and to other internal orders.
|
|
|
In addition to direct postings from financial accounting, how else can profitability analysis receive costs?
|
Through cost assessments from cost centers and ABC processes and through cost settlements from internal orders and production variances settled from cost objects.
|
|
|
What is the primary source of data for management accounting?
|
Financial accounting
|
|
|
What is the primary source for revenue postings from billing documents to revenue posting in profitability analysis (CO-PA) and profit center accounting (PCA)?
|
Sales order management
|
|
|
What does human capital management allow?
|
The opportunity to allocate labor costs to various controlling objects.
|
|
|
Can product cost estimates created in management accounting update price fields in the material master record?
|
Yes.
|
|
|
What is the basic organizational unit in management accounting?
|
The controlling area
|
|
|
What is a controlling area?
|
A closed entity used for cost accouning.
|
|
|
Can you assign more than one company code to a controlling area?
|
Yes. It enables cross-company code accounting.
|
|
|
What must a controlling area and all its company codes use?
|
The same operating chart of accounts and fiscal year variant.
|
|
|
What is the only thing that can vary within a controlling area and its company codes chart of accounts and fiscal year variant?
|
The number of special periods.
|
|
|
What does the operating concern represent and where is it used?
|
It represent the structure of external market segments for the enterprise and is used within profitability analysis.
|
|
|
Can business areas be cross-company code?
|
Yes
|
|
|
What is the central organizational unit in materials management and production planning?
|
The plant
|
|
|
What is a plant assigned to and what does it represent?
|
It is assigned to a company code and it represents a production unit.
|
|
|
What is a purchasing organization?
|
An organizational unit used in materials management
|
|
|
What is a sales organization?
|
An organizational unit used in sales order management
|
|
|
In cross-company code accounting can the controlling area and company codes have different currencies?
|
Yes
|
|
|
What are the three currencies used in management accounting?
|
1. Controlling area currency
2. Object (company code) currency 3. Transaction currency |
|
|
Where is the chart of accunts created?
|
In financial accounting
|
|
|
What are primary cost elements?
|
Expense accounts to which costs are posted for cost accounting purposes (4).
|
|
|
What are secondary cost elements?
|
Are defined only in CO and are used for internal CO allocations (5,6). They do not have any corresponding G/L accounts in FI.
|
|
|
What is a cost center?
|
An organizational unit in a controlling area representing a clearly delimited location where costs occur.
|
|
|
What can you make organizational divisions based off of?
|
functional
Settlement related Activity related Spatial Responsibility related |
|
|
What does the cost center accounting component (CO-OM-CCA) track?
|
Where costs occur in your organization.
|
|
|
What is a cost center used for?
|
Differentiated assignment of overhead costs to organizational activities based on utilization of the relevant areas (cost determination function) and for differentiated controlling of costs arising in an organization (cost controlling function).
|
|
|
Can the design approach of cost centers in an enterprise be different throughout?
|
No. It should be consistent throughout the enterprise.
|
|
|
What does an activity type classify?
|
The activities that are to be performed within a company by one or several cost centers. It serves as a tracing factor.
|
|
|
To enable internal activity alocations, what do you need to specify in the cost center?
|
Which activity types at what price by planning the activity output/price for a cost center.
|
|
|
How do you enter direct activity allocation?
|
You enter the quantity of the activity to be allocated manually.
|
|
|
What must happen in SAP for a cost and activity allocation to occur?
|
The system has to valuate the allocated activity amount using the senders price for this activity type.
|
|
|
What are statistical key figures?
|
They define some measurable quantity that can be assigned to cost centers, activity types, overhead orders, business processes, profit centers and internal orders.
|
|
|
What type of values can you post for key statistical figures?
|
Plan and actual
|
|
|
What can you use statistical key figures for?
|
As an allocation base (tracing factor in CO) for periodic allocation transactions as well as for analysis.
|
|
|
With what value do you define a key statistical figure?
|
Through a fixed or totals value.
|
|
|
What is a fixed value key statistical figure?
|
Is carried over from the period in which it is posted to all subsequent periods of the same fiscal year.
|
|
|
What is a totals value key statistical figure?
|
Not transferred to the following period but must be entered for each individual period.
|
|
|
How can you transfer statistical key figures from the logistics information system?
|
By linking a key figure from the logistics information system to a statistical key figure in cost center accounting.
|
|
|
When master data groups are used in reporting can each hierarchical level produce totals of the levels beneath it?
|
Yes. Automatically.
|
|
|
How can values be used in master data groups and where is the master data itself assigned?
|
Each value can be used in more than one master data group the data itself is assigned to the lowest level nodes in the structure.
|
|
|
What is the standard hierarchy for the cost center?
|
A special type of cost center group
|
|
|
Can controlling areas have more than one standard hierarchy?
|
No. each controlling area must have a unique standard hierarchy.
|
|
|
Must all cost centers be assigned to a node in the standard hierarchy?
|
Yes
|
|
|
How many times can you use the name of a master data group within a client?
|
Once
|
|
|
How can cost center planning be done?
|
Manually or with the help of automatic procedures.
|
|
|
What is the advantage of cost center planning?
|
That it is easy to manage becasue the keys as well as the sender and receiver relationship are usually defined only once.
|
|
|
What is the aimm of cost center planning?
|
To calculate planning costs to define deviations later and prepare the allocation to cost bearers.
|
|
|
Why is activity type planning an important step in cost center planning?
|
Because the planned activity amounts can influence planned costs.
|
|
|
Where could sales and operations planning obtain the planned sales quantities for the upcoming period?
|
1. In the sales information system sales quantity can be planned at the product or product group level
2. Or in profitability anaylsis They can both be combined together to form a single sales quantity forecast as well. |
|
|
What is a capacity based comparison?
|
It is a comparison of planned quantities with production resources that takes place once SOP has its splanned ales quantities.
|
|
|
How are the plan activity quantities created in cost center palnning?
|
On the basis of scheduled quantities from SOP.
|
|
|
What is cost planning performed for?
|
Cost centers and internal orders as well as additional activity planning for overhead cost controlling.
|
|
|
After cost planning is performed, where do the calculated plan activity prices go to?
|
Product cost planning
|
|
|
How does product cost planning estimate the production costs of the planned products?
|
By using bills of material and routings
|
|
|
What are the steps in the strategic procedure for planned requirements?
|
1. Sales planning
2. Production planning (activity/process input quantity) 3. Cost center planning (business process) 4. Material cost estimate (CGS) 5. Profit planning (CO-PA) |
|
|
When a financial document that posts to an expense or revenue account, using a corresponding cost element, is created what occurs?
|
A management accounting document is created
|
|
|
What does a management accounting document created from an FI posting contain?
|
1. A unique number
2. The management accounting object that it was posted to 3. Cost element used 4. Posted amount |
|
|
When a primary cost is initially posted in management accounting how is it treated?
|
As a one-sided journal entry.
|
|
|
What is the difference between a true and statistical posting?
|
True postings are real and can be settled with other management accounting objects.
Statistical postings are for information purposes only and can not allocate costs to other objects. |
|
|
How do true postings act during cost allocations?
|
As sending or receiving objects
|
|
|
What are examples of true objects?
|
1. Cost centers
2. Real internal orders 3. Real projects 4. Networks 5. Make-to-order production orders 6. Cost objects 7. Profitability segments |
|
|
What are examples of statistical objects?
|
Statistical orders
Statistical projects Profit centers |
|
|
How can an expense (or revenue) be posted to CO as a cost?
|
If a primary cost element has been created in CO that corresponds to the expense (or revenue) account and a valid cost center is reference in the line item of the cost.
|
|
|
A CO document has its own unique number and contains what details?
|
1. The controlling object posted to
2. The cost element used 3. The amount |
|
|
When a cost is moved from one controlling object to the other what happens to the balance sheet?
|
The sending object is credited and the receiving object is debited.
|
|
|
What is a movement type?
|
An identification key which has important control functions in inventory management.
|
|
|
What does direct activity allocation deal with?
|
The measurement, posting and allocation of an organizationla activity.
|
|
|
In cost center accounting, what is the equivalent to the tracing factors of financial accounting?
|
Activity types
|
|
|
What must you enter to make a direct activity allocation?
|
The cost center that provides the activity (sender cost center), the object that receives the activity (receiver), the activity type, and the quantity of the activity provided.
|
|
|
During activity allocation, what cost center is debited and credited and how do yo calculated the amount the debit/credit?
|
The sender is credited and the receiver is debited. yo debit and credit the activity provided multiplied by the activity price.
|
|
|
Where is the cost element used for direct allocation of an internal activity derived from?
|
Directly from the master data for the activity type.
|
|
|
What are examples for periodic allocation techniques?
|
Periodic reposting
Assessment Distribution Indirect activity allocation Template allocation |
|
|
What is a tracing factor?
|
A user-defined key for determining cost and quantity assignments in periodic allocations.
|
|
|
What are the only things that may serve as senders in an assessment allocation?
|
Cost senders or business processes
|
|
|
What is an assessment designed for?
|
The allocation of primary and secondary costs from a sender cost center to receiver controlling objects.
|
|
|
When is an assessment allocation useful?
|
When the breakdown of costs is unimportant to the receiver.
|
|
|
What is an internal order?
|
An extremely flexible CO tool("bucket") that can be used for a wide variety of purposes to track costs, in some cases revenues, within a controlling area.
|
|
|
What are the categories of internal orders?
|
1. Overhead orders
2. Investment orders 3. Accrual orders - used to offset postings of accrued costs to cost centers (vacations and bonuses) 4. Orders with revenue |
|
|
What is an order with revenue?
|
It is used to replace the cost accounting parts of SD customer orders if SD is not being used, so both costs and revenues can be tracked or to monitor revenues not affecting the organizations core business.
|
|
|
What are the different cost planning levels available for planning internal orders?
|
1. Overall planning
2. Primary/secondary cost and revenue planning 3. Unit costing |
|
|
What is overall planning?
|
The simplest level for planning order costs by planning overall and annual values irrespective of the cost elements.
|
|
|
What is the level of detail for each cost planning level?
|
1. Overall - least
2. Primary/secondary - mid 3. Unit costing - most |
|
|
What does an internal order allow for?
|
A better view of costs that could not be irmized in detail in a cost center ("bucket").
|
|
|
If an internal order is a statistical posting what receives the real posting?
|
The cost object that the internal order is attached to.
|
|
|
What is a commitment?
|
It identifies costs which will be incurred in the future for materials and services requested or ordered.
|
|
|
Where are commitments for future costs created?
|
In the purchasing function of the materials management component.
|
|
|
When is a commitment recorded automatically?
|
When you assign an overhead order to a PR or PO line item.
|
|
|
When is a commitment reduced?
|
By posting a goods receipt against a PO.
|
|
|
Actual costs are posted to the internal order until what happens to the commitment?
|
It is reduced to zero
|
|
|
Where do you activate commitment management?
|
In managment accounting for each controlling area
|
|
|
What is a settlement?
|
After an internal order is complete and the costs have to be passed on to their final destination.
|
|
|
What do internal orders aid in?
|
The planning, mointoring and reporting processes.
|
|
|
what must be defined for each internal order?
|
A settlement rule
|
|
|
Where are settlement rules defined?
|
In the order master record
|
|
|
What is a profit center?
|
A management-oriented organizational unit used for internal controlling purposes
|
|
|
How does profit center accounting enable you to set up your profit centers?
|
According to products, geographical factors or functions.
|
|
|
What is the overall goal of profit center accounting?
|
To measure the profitability of the areas of responsibility within the organization.
|
|
|
What can a profit center be seen as theoretically?
|
A company within a company.
|
|
|
What does profit center accounting allow you to do?
|
Calculate internal measurements of profitability
|
|
|
What is an account assignment?
|
It specifies where a revenue or cost will reside in CO
|
|
|
What are example of real account assignment objects?
|
Cost centers, internal orders, production orders, and profitability segments.
|
|
|
When profit center accounting is active, how are the various controlling objects linked to their respective profit centers?
|
Through the master record of the controlling object which contains a profit center field.
|
|
|
Profit center planning is part of shirt-term planning that covers how long?
|
One fiscal year
|
|
|
What are the two steps in profit center planning?
|
1. The planning data is transferred to the profit centers from cost centers, internal orders, profitability analysis and product cost planning.
2. Then the data can be modified directly in the profit centers |
|
|
What is the aim of profitability analysis?
|
to provide the organization with market oriented decision support.
|
|
|
How is the profitability segment generated?
|
Automatically
|
|
|
What are characterisitics?
|
Non-numeric descriptors
|
|
|
What are value fields?
|
Numeric
|
|
|
What does product cost accounting do?
|
All aspects of planning the cost of product or services as well as tracking and analyzing the actual costs.
|
|
|
What components does product cost accounting consist of?
|
Product cost planning
Cost object controlling Actual costing and material ledger |
|
|
What does cost object controlling do?
|
Collects the costs incurred during the production of a product or service using cost objects sucha s production orders.
|
|
|
What does actual costing and material ledger provide?
|
Actual costs for each material at the end of the period.
|
|
|
How can the system automaticaaly create a cost estimate in product cost accounting?
|
If a quatity structure (BOM and routing) is available in manufacturing planning
|
|
|
What calculates the value of goods still in production (WIP) and the variances between the cost estimates and the actual costs and settles them to other components?
|
Period end closing
|
|
|
What components are the WIP goods and variances sent to after period end closing calculates their value?
|
Profitability analysis and financial accounting
|
|
|
What is actual costing with the material ledger used to provide?
|
Actual costs for each material at the end of the period
|
|
|
How are materials and their movements valuated?
|
With a standard price during the period
|
|
|
during period-end closing, what is used to calculate the actual price for the material in the closed period?
|
Any variance with respect to the standard price
|
|
|
What must you enter when you create a cost estimate with a quantity structure?
|
You must enter the costing variant, the material, the plant, and the lot size.
|
|
|
What do the dates proposed from the costing variant specify?
|
1. The period of validity of the cost estimate
2. The selection date for the BOM and routing (quantity structure dates) 3. The pricing data for the material components and activities (valuation date) |
|
|
What does the cost element itemization do?
|
Groups the individual costing items into cost elements
|
|
|
How are cost elements determined in cost element itemization?
|
Via account determination for materials, activity type master record or via activity type planning for activities, and via the process master record for processes.
|
|
|
What are two ways costing results can be displayed?
|
Cost element itemization or cost component split
|
|
|
What does a cost component split do?
|
Groups the cost elements into cost components.
|
|
|
What happens to the cost component split when a multi-level structure is costed?
|
Is is rolledup so that the original identity of the costs is retained for analysis.
|
|
|
What is a cost rollup used for?
|
To ensure that the cost of goods manufactured, material and production costs, of all materials in a multi-level BOM are included int eh cost estimate of the higher level material.
|
|
|
What are the pre-requisites that must be met before a standard cost estimate can be marked or released?
|
1. Stand cost estimate must be free of errors (status KA)
2. The marking and release must be allowed |
|
|
An authorization for marking should be set up by the employee responsible how often?
|
Once per period
|
|
|
If you mark a standard cost estimate, how are the results updated in the material master record?
|
As the future standard price
|
|
|
How often can you release a standard cost estimate from the database?
|
Once per period unless you delete the previously released standard cost estimate (using a special program) from the database.
|
|
|
What are the types of material master prices?
|
1. Planned prices 1, 2, 3
2. Tax-based prices 3. Commercial prices 4. Price control |
|
|
What is a price control?
|
Indicator that controls which price is used to valuate the inventory of a material.
|
|
|
What are the types of price control?
|
1. Standard price
2. Moving average price |
|
|
What are planned prices 1, 2, and 3 used for?
|
For raw materials and purchased parts and to valuate the materials in the cost estimate
|
|
|
What can be used to update the standard price?
|
A standard cost estimate
|
|
|
What does it mean when the price control indicator is set to S?
|
The inventory is valuated at standard price
|
|
|
How are goods movements valuated in the system?
|
Using a price selected in accordance with the price control indicator
|
|
|
What is a standard price used for?
|
Inventory valuation and valuation of goods movement
|
|
|
What is the benchmark for cost object controlling/variance calculation?
|
Standard cost estimate. Itemization required
|
