SAP - Controlling
Terms in this set (62)
Management Accounting is responsible for cost and revenue controlling. (T/F)
Which of the following components are parts of SAP Management Accounting?
a. Profitability Analysis
b. Accounts Payable
c. Overhead Cost Controlling
d. Product Cost Controlling
e. Payroll Cost Controlling
An expense can only be recorded in Financial Accounting or Management Accounting but not both. (T/F)
Cost Element Accounting is responsible for recording overhead related to products and services. (T/F)
FALSE CO-OM Overhead Management is responsible for managing overhead
Overhead Costs can be allocated to cost centers
internal orders and processes using ABC. (T/F),TRUE
Costs associated with Product Cost Accounting can be allocated to an internal order. (T/F)
FALSE Costs associated with Overhead Management can be allocated to an internal order.
What are the prerequisites for companies to belong to the same Controlling Area
same chart of accounts and same fiscal year variant
What is the basic organisational unit used in management accounting?
What organisational unit is used in Profitability Analysis?
What organisational unit is used to group strategic business units for reporting profit/loss and financial statements?
Name organisational units used in management accounting?
Client/operating concern / controlling area/ company code / business area / purchasing area / plant
Companies belonging to the same Controlling Area must use the same currency. (T/F)
False 3 different types of currencies controlling area currency - company code/object currency - transaction currency
Expense accounts in FI are linked represented in CO. (T/F)
Secondary Cost Elements exist in both FI and CO. (T/F)
FALSE Secondary cost elements only exist in CO
Which organisational unit is used to track costs in an organization?
Cost center P811
Activity Types determine which costs are allocated to which cost center. (T/F)
TRUE activity types classify the activities to be performed within a company
List types of master data used in CO?
activity type - statistical key figure - cost element - accounts - internal orders - accrual orders - production orders
Describe the relationship between Cost Centers and Activity Types.
Activity types p813
What master data is used to quantify a cost?
Statistical key figures
What master data can be used as a tracing factor for the allocation of costs to cost centers internal orders, and processes?
Statistical key figure
Statistical Key Figures can be defined as fixed value or totals value. What is the difference?
Fixed are .... totals are more of a variable cost
Material Data groups in reporting use hierarchies to automatically total the levels below. (T/F)
True group related master data p815
A Management Accounting document is created when FI post and expense to a cost element. What are the components of a management accounting document?
Cost element used- Posted amount p818
What is the difference between True and Statistical objects in CO?
true can be both sending and receiving statistical only receives
What is the purpose of Direct Activity Allocation?
P820 Direct activity used to measure post and allocate cost associated with a center. debit receiver credit sender
What is the relationship between Activity Type and Direct Activity Allocation.
Activity type defines activity of a cost center
How do Direct Activity Allocation and Periodic Allocation differ?
Direct allocation is always one to one - periodic can be one to many i.e. direct doesn't need statistical key figures
An Assessment is designed fro the allocation of primary and secondary costs from a sender cost center to receiver controlling objects. (T/F)
List different types of receiver controlling objects?
Project - cost center - order - cost object - WBS elements
An internal order can not be used to track revenues. (T/F)
What is the purpose of an Internal Order?
Temporary cost object used to plan/monitor/allocate
List 4 different types of Internal Orders?
Overhead cost order - investment order - accrual order - orders with revenues
Three different levels can be used in planning internal orders. What are they?
Overall planning - primary/secondary costs and revenues - unit costing
What is a Commitment in CO?
Purpose is to reserve funds for
Where and when is a Commitment created?
Purchase req/order p847
When is a Commitment closed?
What is a Settlement?
Transfer of costs / revenues between centers
What is the purpose of a Profit Center?
Track both costs and revenues
Costs are allocated directly to Profit Centers (T/F)
FALSE cost are directly allocate to cost centers then transferred
What is the difference between Profitability Analysis and Profit Center Accounting?
PA has external focus PCA has internal focus
What is a components make up a Profitability Segment?
characteristics key figures value fields
Name the components of Product Cost Accounting?
cost object controlling - product cost planning - actual costing and material ledger
In Product Cost Planning what is required in MRP to automatically create a material cost estimate?
BOM and routing but need value structure to come up with standard cost
A Production Order is a type Cost Object where costs can be collected. (T/F)
In a Cost Estimate what is the purpose of a Costing Variant?
costing variant determines period of validity of costing estimate
A Cost Roll Up is used to allocate costs to different cost objects. (T/F)
False used to ensure all costs associated with BOM included cost of product
Releasing a Cost Estimate updates the standard price in the Material Master and then re-evaluates inventory. (T/F)
TRUE -release = immediate
mark = effective next period
In Profitability Analysis what is the role of cost estimates?
use cost estimate to compare to actual cost
Which of the following are tools that can be used to pass costs into Management Accounting?
a. A GL can post to an expense account which will also require the nomination of a controlling object like a cost centre or internal order.
b. A valuated goods receipt for a non-stock purchase order in Materials Management can post to a controlling object nominated in the purchase order.
c. A direct activity allocation can be used to pass costs for a secondary cost element from FI into a controlling object.
d. Settlement of an internal order can pass costs to a receiver cost object.
A B D
What are internal orders used for and describe how an overhead order could be used.
internal orders are used for temporary internal cost bucket - overhead order is used for any costs that cannot be tracked directly to a product this is the sender - the receiver is going to be a production order (all overhead costs must be settled to a product)
What is the purpose of the Controlling module in ERP?
concerned with controlling revenues and expenses
The difference between target costs and actual costs for a production order are analysed based on the product cost estimate itemisation details. (T/F),TRUE p883
Give 3 examples of an Activity Type.
labor hours - machine hours - setup time - usually hourly rate
In a CO assessment cycle the sender cost centre cost elements are the same ones that are used to allocate the costs to the receiver cost centre. (T/F)
false true in distribution - however in assessment receiver always receives a secondary cost element
Once an internal order task is complete what happens to the costs stored in the internal order?
must be settled to a controlling object, i.e. production order
Describe the difference between primary and secondary cost elements.
primary maintains identity - 1:1 w/FI (distribution) - Secondary loses identity (assessment)
In direct activity allocation any controlling abject can allocate activities to another. (T/F)
FALSE direct activity allocation only applies when sender is a cost center
Periodic allocations of costs from CO objects to cost centres is controlled by an allocation cycle in CO. (T/F)
How are profit centres different to cost centers?
profit centers also collect revenues they are also statistical (not true)
Describe three key inputs required to perform a material cost estimate in Product Costing.
-BOM (what / how many)
Value structure (how much)
-activity type prices
Describe the difference between a Controlling Area and an Operating Concern and explain how?
if at all, they are linked., controlling area belongs to operating concern - operating concern 1:M controlling areas - PA done at the operating concern level
Balance sheets and income statements can be drawn up for profit centres. (T/F)
Which of the following master data are used in Product Cost Accounting?
a. bills of materials
b. purchasing info records
c. material masters
e. pricing conditions
A C D Purchase info records used in
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