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MANAGERIAL ACCOUNTING PCA TEST PAPER 01 1.Which of the following statements are true a.

two accounting methods used for generating profitability statements are cost of sales method and period accounting method b. under the two methods bottom line results are different c. profitability analysis analyze the internal profit and loss for profit centers d. the definitions of both market segments and performance figures are freely definable allowing for maximum flexibility in market evaluation 2. It is possible to treat a profit center as an investment center a. true b. false 3. under profit center accounting there is no possibility to transfer selected balance sheet line items to profit centers on a periodic basis a. true b. false 4. which of the following statements are true a. profit center accounting is not a statistical accounting component. This means it takes transaction data in other components and represents it from a profit center oriented point of view b. the integration of the R/3 system makes it possible to post profit relevant data to profit center accounting automatically as soon as the transaction is originally posted c. in profit center accounting we can store transactions in three currencies : the transaction currency, the local currency and the profit center currency/controlling area currency d. parallel valuation views are not possible in profit center accounting 5. which of the following statements are true a. elimination of internal business selection ensures that the system will post transaction data between objects of the same type which are assigned to the same profit center b. if I do not select the store transaction currency in Controlling area setting for profit center, system will not store the data in the transaction currency c. if I have not set the control indicator flag, no data will be transferred to profit center accounting d. we cannot set up profit centers based on geographical divisions 6. which of the following statements are true with respect of profit center master data a. a profit center is defined at client level b. profit center master data is time based c. by default, a profit center is not assigned to all the company codes within the Controlling area. You have to include the company codes 7. which of the following statements are true in case of dummy profit center master data a. un-assigned object to a profit center is posted to the dummy profit center in profit centre accounting b. you have to specify a validity period for dummy profit center c. you can copy the dummy profit center from an existing profit center d. a switch identifying it as the dummy profit center is automatically set PROFIT CENTER ASSIGNMENTS 8. which of the following statements are true in respect to assignment of controlling objects a. when you assign a controlling object to a profit center, the system makes sure that the controlling area is the same for the object and the profit center

MANAGERIAL ACCOUNTING PCA TEST PAPER 01 b. when we assign a cost center to profit center, the validity period of the profit center must completely contain that of the cost center c. you link internal orders to a profit center in order master data assignments screen 9. which of the following statements are true in respect of materials assignment to profit centers a. the assignment of the material masters to profit center is not the basis for the assignment of sales and production orders b. materials are always assigned to a profit center at the plant level c. the plant is assigned to a company code, which in turn assigned to a controlling area. This controlling area may differ from the controlling area to which the profit center belongs d. we can assign materials directly in the material master or use the fast assignment function 10. which of the following statements are true in case of Production and sales orders assignment to profit centers a. a production order contains its assignment to a profit center in the order master record b. when you create a production order, we have to enter profit center in the production order c. all the primary and secondary costs posted to the production order are passed on to the profit center along with the credit posted when the production order is delivered or settled d. in sales orders, each order item is assigned separately to a profit center 11. which of the following statements are true a. we can call up a list of all cost centers which have not been assigned to a profit center or profit center group, or a list of cost centers which are assigned to a particular profit center or profit center group by using assignment monitor b. the cost objects menu contains the general cost objects as well as the cost objects for process manufacturing ACTUAL DATA FLOW AND LINE ITEM MANAGEMENT 12. When considering the data transferred to profit center accounting which are true a. all postings affecting revenue and cost elements b. p & l postings directly coded to a profit center c. balance sheet accounts maintained with automatic account assignment in PCA customizing d. the data is posted to other objects and passed on from there to a profit center in PCA 13. which of the following statements are true a. all the goods movements between profit centers are created in materials management and where necessary reflected from a profit center point of view via a special account determination b. when you post a purchase order, the system will not post the goods usage immediately upon goods receipt if the purchase order has an account assignment c. when you deliver a production order to warehouse, the change in stock is created in the profit center of the production order d. stock transfers in logistics can lead to an exchange of goods between profit centers. In this case, the system will not post any entries in profit centers because these movements are internal 14. which of the following statements are true in respect to data flow from sales and distribution a. in financial accounting, we can not assign sales revenues directly to a profit center b. if you are using account based profitability6 analysis, you must choose a profitability segment as the real account assignment object c. if we are not using account based profitability analysis, you need to enter the profit center in the corresponding field in the G/L account posting 15. The system determines the profit center to which balance sheet accounts are assigned as follows

MANAGERIAL ACCOUNTING PCA TEST PAPER 01 a. receivables are divided according to the corresponding revenue line items and assigned to the profit centers b. payables are posted to the profit centers of the material ordered for purchase orders to stock, and to that of the account assignment for purchase orders to account assignment object.

MANAGERIAL ACCOUNTING PCA TEST PAPER 01 KEY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. a, d true false b, c b, c b a, d a, c a. b. d a. c. d a, b a,b,c,d a, c c a, b