Livre BOB - Question Chapter 5 Flashcards
Explain in your own words why the information gathered for financial accounting might not be readily usable for decision making?
Financial accounting gathers information needed for accurate external financial reporting. This might not always have the level of detail needed for decision-making.
Explain why financial accounting might not be well-equipped for the profitability computations.
Financial accounting does not necessarily have disaggregate the information to the extent needed. It only has to do what is necessary for external reporting.
Which cost can we directly attribute to the individual products?
Direct labor, cost of dedicated machinery and raw materials.
Identify at least one indirect cost.
Rent/Space cost, electricity and other utilities
Would it make sens to treat the accounting department of a company as a profit center?
No. Accounting departments do not generate cost revenues. However, it is possible for a company to actually charge user department for use of the services of the account departement.
In SAP, a client represents a conglomerate company and can have several company codes within it. Given that scenario, can management accounting cut across company code boundaries?
If the various company codes share common ressources - like a purchasins department, manufacturing, facilities, etc.. then these shared costs will need to be allocated across company code boundaries.
What is the difference between a cost element and an occurence of cost element
Cost element is category of a cost. It does not have an actual monetary value associated with it.
When an instance of the cost element occurs, that instance has the monetary value.
Ex: food expense
Ex: When we go out and spend 25$, that becomes an instance of the cost element “food expense”
Name a cost that might flow from the noted SAP module to CO. Also indicate the component within CO where it might be used. (5)
FI ( general): utility expense - overhead cost controlling
FI -AA ( Asset Accounting): depreciation - product cost accounting
HCM - Payment - Overhead Cost Controlling
MM - Materials Management : purchasing of material for consumption - Overhead cost controlling
PP: Product cost - Profit Center Accounting
SD : Cost and goods sold - Profitability analysis
Indicate one way in which CO might have impact on FI?
Product Costing, which is an aspect of management accounting ( CO ), impacts valuation of finished goods.
In which organizational element will you find Overhead Cost Controlling?
Controlling Area
In which organizational element will you find Product Cost Accounting CO-PCA
Controlling Area
One controlling area can have multiple company codes assigned to it? True or False?
False: A company code can belong to only one Controlling Area.
A client has a many controlling Areas with each containing multiple cost centers. Cost Centers can allocate costs between Controlling Areas?
False: Cost allocations can occur only between cost centers belonging to the same Controlling Area.
Explain the mechanism used to transfer a accounting information from FI to CO.
Every expense account in FI is now considered a primary cost account. Whenever an expense is posted in FI, the posting to that primary cost account resultsin a posting to a cost object in CO.
What type of cost elements exist as account types in FI?
Primary cost element
Secondary Cost elements
Which master data in CO is used to track where costs are incurred within the enterprise?
Cost Center
How are cost centers structured in SAP?
Cost centers are assigned to cost center groups, which are structured hierarchically in SAP.
What do the cost center groups enable?
They enable the ability to track and allocate costs across multiple related cost centers.
Cost center + Activity type are us to determine what in Activiti Based Costing?
Unit price
Which type of cost element is used to perform an assessment(one)
Primary
Secondary
Revenue
In SAP S/4HANA expenses in FI are tracked using which account type?
Primary cost account
A company accumulates costs associated with its cafeteria in a cost center and allocates this cost to other cost centers at the end of each month. What is this process broadly called?
Allocation
A company accumulated costs for a training event in an internal order and then allocates this cost to other cost centers at the end of the month. What is this process broadly called?
Settlement
What is the difference between CO postings to primary cost elements and to secondary cost elements in CO?
Primary cost elements represent the flow of expenses from FI to CO.
Secondary cost elements represent allocations across various cost objects within CO.
What two entries must be made for ajournal posting in FI to properly post in CO?
It requires a line entry to a primary cost account as well as the account assignment object responsible in CO.
What is the purpose of a periodic allocation?
To accumulate costs in a cost center that will be allocate to ther CO objects at the end of the accounting period.
Which of the following is not an example of periodic allocation?
Assessment Distribution Direct activity allocation Periodic reposting Template allocation
Direct activity allocation
For which of the following scenarios would tou suggest using an Internal Order?
The company is going to produce finished goods and wants to have mechanism to accumulate production costs.
The company is organizing a promotion seminar and needs to track all costs incurrend for this purpose.
The company is buying a new machine and wants an object to which to charge the cost to which to charge the cost of the machine as well as future costs incurred on the machine.
The company is constructing a new parking lot and wants to accumulate the costs incurred.
The company is organizing a promotion seminar and needs to track all costs incurrend for this purpose.
The company is buying a new machine and wants an object to which to charge the cost to which to charge the cost of the machine as well as future costs incurred on the machine.
The company is constructing a new parking lot and wants to accumulate the costs incurred.
When does the settlement occur for internal orders?
End of settlement accounting period, or at the end of the life of the order.
Which of the following cannot be a receiver when the costs of an internal order are settled?
Asset Profitability segment Project Profit Center Cost Center
Profit center
Explain the difference between a true cost object and a statistical object?
True cost objects can be allocated costs. Statistical costs are only for information purposes and cannot be allocated.
What is the purpose of a statistical cost object?
To collect or compute specific cost statistics for information purposes without having a need for reallocation.
Which of the following are examples of characteristics used in profitability segments?
Cost of goods sold Sales revenue Product Sales region Customer
Sales region
What is the effect on the material master when the material standard cost estimate is marked?
The material master record has now a “future” standard price.
What is the effect on the material master of releasing a material standard cost estimate?
The future standard price becomes the current standard price and the current price becomes the previous price.
