Which of the following statements are true regarding cost elements? - ProProfs Discuss
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Which of the following statements are true regarding cost elements? Cost Elements are classifications of the organization's evaluated consumption of production factors within a controlling area.



A. Primary Cost Elements are cost elements whose costs originate outside of SAP CO.
B. Secondary Cost Elements are cost elements that are used to allocate costs for internal activities.
C. Each primary cost element corresponds to an account in a chart of accounts.
D. Each secondary cost element corresponds to an account in a chart of accounts.
E. When creating primary cost elements, you Must also create a general ledger account with the same number in the chart of accounts in SAP FI.
F. When creating secondary cost elements, you Must also create a general ledger account with the same number in the chart of accounts in FI.
G. Each revenue element corresponds to an account in a chart of accounts.

This question is part of 10 Management Accounting
Asked by Dbv_rulez, Last updated: Jul 31, 2018

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1 Answer

John Smith

John Smith

Answered on Feb 22, 2017

Primary Cost Elements are cost elements whose costs originate outside of SAP CO.
Secondary Cost Elements are cost elements that are used to allocate costs for internal activities.
Each primary cost element corresponds to an account in a chart of accounts.
When creating primary cost elements, you must also create a general ledger account with the same number in the chart of accounts in SAP FI.
Each revenue element corresponds to an account in a chart of accounts.
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