112 Terp10 Unit 4 - Management Accounting

Front 1

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

2. A company is assigned to how many controlling areas?

Back 2

1. One.

Front 3

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 Calendar

Front 4

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

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

Back 5

1. Overall planning
2. Period Planning
3. Annual planning

Front 6

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

Back 6

1. 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

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

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

Back 8

1. True

Front 9

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

Back 9

1. False

Front 10

10. T/F - A cost center can be settled.

Back 10

1. True

Front 11

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

Back 11

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

Front 12

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

Back 12

1. True

Front 13

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

Back 13

1. True

Front 14

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

Back 14

1. True

Front 15

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

Back 15

1. False: It is statistical object

Front 16

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

Back 16

1. False

Front 17

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

Back 17

1. True

Front 18

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

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

Back 19

1. True

Front 20

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

Back 20

1. False

Front 21

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

Back 21

1. False

Front 22

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

Back 22

1. True

Front 23

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

Back 23

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

Front 24

25. 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

26. 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

27. 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

28. 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

29. Define primary and secondary cost elements. (20

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

30. 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

31. Name three inputs to cost center planning.

Back 30

1. Manual entries
2. Formulas
3. HCM planning

Front 31

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

Back 31

1. False

Front 32

33. 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

34. Explain allocations.

Back 33

1. Placing costs where they occur.

Front 34

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

Back 34

1. Secondary.

Front 35

36. 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

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

Front 36

37. 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

38. Describe the goal of Profit Center Accounting.

Back 37

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

Front 38

39. 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

40. 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

41. What is a statistical posting?

Back 40

1. It is an informational posting.

Front 41

42. Which types of controlling objects can post to FI accounts?

Back 41

1. MM: Goods Issue & Goods Receipt

Front 42

43. What does CO-PA analyze?

Back 42

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

Front 43

44. 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

45. What is a profit center?

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

46. 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

47. What is the standard hierarchy?

Back 46

1. Represents all CCs per controlling area.

Front 47

49. Describe Posting Logic processes:

Back 47

1. 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

50. 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

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

Back 49

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

Front 50

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

Back 50

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

Front 51

59. Each internal order must have a ________________ rule.

Back 51

1. Settlement

Front 52

60. 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

61. 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

62. What is a Profitability Segment?

Back 54

1. A combination of characteristic values

Front 55

63. What is a Cost Rollup?

Back 55

1. 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

58. 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

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

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

60. 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

60. ________ _________ is a primary source of data for Management Accounting.

Back 59

1. Financial Accounting

Front 60

61. What are the five main components of Management Accounting?

Back 60

1. Profitability Analysis: (2)
i. How Profitable?
ii. Used to determine through analysis how successful the enterprise is in different market segments and over time. (example: sales of product A to customer Y)

Front 61

61.

Back 61

2. Profit Center Accounting: (2)
i. Profitability in which area?
ii. Analyze the success of the profit center in the enterprise.

Front 62

61.

Back 62

3. Overhead Cost Controlling: (2)
i. Where are cost?
ii. Examines the origin of costs in the functional areas of an Enterprise.

Front 63

61.

Back 63

4. Product Cost Controlling (Accounting): (2)
i. Cost for What?
ii. Used for costing and evaluating the cost of goods manufactured for a product and the costs associated with providing a service or when carrying out a project.

Front 64

61.

Back 64

5. Cost Element Accounting: (2)
i. What Costs?
ii. Classifies the costs and revenue posted to Management Accounting.

Front 65

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

Back 65

1. Sender
2. Receiver

Front 66

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

Back 66

1. True