A Cost Roll Up is used to allocate costs to different cost objects.

(T/F)

1a

False used to ensure all costs associated with BOM included cost of product
1b

A Management Accounting document is created when FI post and expense to a cost element. What are the components of a management accounting document?
2a

Cost element used- Posted amount p818

2b

A Production Order is a type Cost Object where costs can be collected. (T/F)
3a

TRUE

3b

Activity Types determine which costs are allocated to which cost center. (T/F)
4a

TRUE activity types classify the activities to be performed within a company

4b

An Assessment is designed fro the allocation of primary and secondary costs from a sender cost center to receiver controlling objects. (T/F)
5a

TRUE

5b

An expense can only be recorded in Financial Accounting or Management Accounting but not both. (T/F)
6a

FALSE

6b

An internal order can not be used to track revenues. (T/F)

7a

FALSE

7b

Balance sheets and income statements can be drawn up for profit centres. (T/F)
8a

TRUE

8b

Companies belonging to the same Controlling Area must use the same currency. (T/F)
9a

False 3 different types of currencies controlling area currency - company code/object currency - transaction currency
9b

Cost Element Accounting is responsible for recording overhead related to products and services. (T/F)
10a

FALSE CO-OM Overhead Management is responsible for managing overhead

10b

Costs are allocated directly to Profit Centers (T/F)

11a

FALSE cost are directly allocate to cost centers then transferred

11b

Costs associated with Product Cost Accounting can be allocated to an internal order. (T/F)
12a

FALSE Costs associated with Overhead Management can be allocated to an internal order.
12b

Describe the difference between a Controlling Area and an Operating Concern and explain how?
13a

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
13b

Describe the difference between primary and secondary cost elements.

14a

primary maintains identity - 1:1 w/FI (distribution) - Secondary loses identity (assessment)
14b

Describe the relationship between Cost Centers and Activity Types.

15a

Activity types p813

15b

Describe three key inputs required to perform a material cost estimate in Product Costing.
16a

p878 Quantity structure -BOM (what / how many) -Routing (when) Value structure (how much) -activity type prices -Material prices -Process prices -Overhead costs
16b

Expense accounts in FI are linked represented in CO. (T/F)

17a

TRUE

17b

Give 3 examples of an Activity Type.

18a

labor hours - machine hours - setup time - usually hourly rate

18b

How are profit centres different to cost centers?

19a

profit centers also collect revenues they are also statistical (not true)

19b

How do Direct Activity Allocation and Periodic Allocation differ?

20a

Direct allocation is always one to one - periodic can be one to many i.e. direct doesn't need statistical key figures
20b

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)
21a

false true in distribution - however in assessment receiver always receives a secondary cost element
21b

In a Cost Estimate what is the purpose of a Costing Variant?

22a

costing variant determines period of validity of costing estimate

22b

In direct activity allocation any controlling abject can allocate activities to another. (T/F)
23a

FALSE direct activity allocation only applies when sender is a cost center

23b

In Product Cost Planning what is required in MRP to automatically create a material cost estimate?
24a

BOM and routing but need value structure to come up with standard cost
24b

In Profitability Analysis what is the role of cost estimates?

25a

use cost estimate to compare to actual cost

25b

List 4 different types of Internal Orders?

26a

Overhead cost order - investment order - accrual order - orders with revenues
26b

List different types of receiver controlling objects?

27a

Project - cost center - order - cost object - WBS elements

27b

List types of master data used in CO?

28a

activity type - statistical key figure cost element - accounts - internal orders - accrual orders - production orders
28b

Management Accounting is responsible for cost and revenue controlling. (T/F)

29a

TRUE

29b

Material Data groups in reporting use hierarchies to automatically total the levels below. (T/F)
30a

True group related master data p815

30b

Name organisational units used in management accounting?

31a

Client/operating concern / controlling area/ company code / business area / purchasing area / plant
31b

Name the components of Product Cost Accounting?

32a

cost object controlling - product cost planning - actual costing and material ledger
32b

Once an internal order task is complete what happens to the costs stored in the internal order?
33a

must be settled to a controlling object, i.e. production order

33b

Overhead Costs can be allocated to cost centers

34a

internal orders and processes using ABC. (T/F),TRUE

34b

Periodic allocations of costs from CO objects to cost centres is controlled by an allocation cycle in CO. (T/F)
35a

TRUE

35b

Releasing a Cost Estimate updates the standard price in the Material Master and then re-evaluates inventory. (T/F)
36a

TRUE -release = immediate mark = effective next period

36b

Secondary Cost Elements exist in both FI and CO. (T/F)

37a

FALSE Secondary cost elements only exist in CO

37b

Statistical Key Figures can be defined as fixed value or totals value. What is the difference?
38a

Fixed are .... totals are more of a variable cost

38b

Three different levels can be used in planning internal orders. What are they?
39a

Overall planning primary/secondary costs and revenues - unit costing

39b

What are internal orders used for and describe how an overhead order could be used.
40a

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)
40b

What are the prerequisites for companies to belong to the same Controlling Area
41a

same chart of accounts and same fiscal year variant

41b

What is a Commitment in CO?

42a

Purpose is to reserve funds for

42b

What is a components make up a Profitability Segment?

43a

characteristics key figures value fields

43b

What is a Settlement?

44a

Transfer of costs / revenues between centers

44b

What is the basic organisational unit used in management accounting?

45a

Controlling area

45b

What is the difference between Profitability Analysis and Profit Center Accounting?
46a

PA has external focus PCA has internal focus

46b

What is the difference between True and Statistical objects in CO?

47a

true can be both sending and receiving statistical only receives

47b

What is the purpose of a Profit Center?

48a

Track both costs and revenues

48b

What is the purpose of an Internal Order?

49a

Temporary cost object used to plan/monitor/allocate

49b

What is the purpose of Direct Activity Allocation?

50a

P820 Direct activity used to measure post and allocate cost associated with a center. debit receiver credit sender
50b

What is the purpose of the Controlling module in ERP?

51a

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
51b

What is the relationship between Activity Type and Direct Activity Allocation.
52a

Activity type defines activity of a cost center

52b

What master data can be used as a tracing factor for the allocation of costs to cost centers internal orders, and processes?
53a

Statistical key figure

53b

What master data is used to quantify a cost?

54a

Statistical key figures

54b

What organisational unit is used in Profitability Analysis?

55a

Operating concern

55b

What organisational unit is used to group strategic business units for reporting profit/loss and financial statements?
56a

Business area

56b

When is a Commitment closed?

57a

Goods receipt

57b

Where and when is a Commitment created?

58a

Purchase req/order p847

58b

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.
59a

ABD

59b

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
60a

ACD

60b

Which of the following master data are used in Product Cost Accounting? a. bills of materials b. purchasing info records c. material masters d. routings e. pricing conditions
61a

A C D Purchase info records used in

61b

Which organisational unit is used to track costs in an organization?

62a

Cost center P811

62b