L2-Explaining Management Accounting (CO) Flashcards
What are Management Accounting Components
It contains all of the functions for controlling cost and revenue effectively.
Example:
management accounting
tools for compiling information for company management.
Purpose of Management Accounting Components
It provides information that management can use to make decisions, such as facilitate the coordination, supervision, and optimization of all processes within a company.
What is Profitability Analysis?(1 component)
It analyzes the profit or loss of an organization according to individual market segments.
How does CO-PA work? (1 component)
Costs are assigned to the revenues of each market segment. This gives you a basis for calculating prices, targeting customers, determining conditions, and choosing sales channels.
What is the relationship between CO-PA and sales management order?(1 component)
Sales order management is a primary source for revenue postings from billing documents to revenue postings in CO-PA and PCA.
It also receives direct postings from FI, such as cost assessments from cost centers and ABC processes, cost settlements from internal orders, Production Variation settlements from cost objects.
Purpose of Overhead Cost Controlling (CO-OM)? 2 Component
Post costs to cost centers, internal orders, and processes from other SAP S/4HANA applications (external costs).
Purpose of Cost Centers (2 Component)
Allocate these costs to other cost centers, internal orders, and processes in Activity-Based Costing (ABC). ABC, in turn, can pass costs to cost centers and internal orders.
Purpose of internal Costs (2 Component)
Settle costs to cost centers, processes in ABC, and other internal orders.
Purpose of Cost Center Accounting (Component 4)
Controlling purposes in your organization, such as taking the costs incurred in a company and allocates them to the actual subareas that caused them.
What is Cost Centers? (Component 4)
Cost centers are separate areas within a controlling area at which costs are incurred. You can create cost centers according to various criteria including functional considerations, allocation criteria, activities provided, or according to their physical location and/or management area.
Product Cost Controlling (Component 3)
Product Cost Controlling calculates the costs incurred when a service is provided or a product is manufactured. It enables you to calculate the minimum price at which a product can be profitably marketed. The manufacturing area of Logistics also works closely with CO. Bills of material (BOMs) and routings can be used in CO-PC.
Costs & Revenue Element in Cost Element Accounting (Component 4)
Costs and revenues are assigned to different CO account assignment objects such as cost centers, projects, or orders.
These Financial Accounting accounts are managed in Management Accounting as cost or revenue elements
What is an Internal order?
used to plan, collect, and analyze the costs arising from internal activities.
HCM in Management Accounting
SAP Human Capital Management (HCM) can generate cost postings in CO. SAP HCM allows you to allocate labor costs to various controlling objects. In addition, you can transfer and use planned personnel costs for planning in CO.
How do you facilitate/supervision of coordination and optimization of all processes?
By recording both the consumption of production factors and the services provided by an organization.
