Management Accounting For 10th Grade Quiz

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Management Accounting For 10th Grade Quiz

Management accounting involves preparing timely and accurate managerial reports and accounts that help managers to make day to day decisions about the operations of a business. Having covered the basics in class you should be able to answer the quiz below with ease. Give it a try and keep revising!


Questions and Answers
  • 1. 
     Which of the following components are part of SAP CO? (4 correct answers)
    • A. 

      Cost Center Accounting

    • B. 

      Maintenance Orders

    • C. 

      Product Cost Controlling

    • D. 

      Cost Element Accounting

    • E. 

      Activity Based Costing

    • F. 

      Profit Center Accounting

  • 2. 
    Which of the following organizational units belong to SAP CO? (3 correct answers) 
    • A. 

      Controlling Area

    • B. 

      Company Code

    • C. 

      Business Area

    • D. 

      Operating Concern

    • E. 

      Plant

    • F. 

      Purchasing Organization

    • G. 

      Cost Center

    • H. 

      Sales organization

  • 3. 
     A controlling area is the basic organizational unit in Management Accounting. A controlling area represents a closed entity for cost accounting. Which of the following statements are true regarding controlling areas in SAP ERP? (2 correct answers)
    • A. 

      Costs can only be allocated within a controlling area.

    • B. 

      You can allocate costs between cost centers that do not belong to the same controlling area. Therefore, you must use the cross-controlling area allocation.

    • C. 

      You can assign several company codes to a controlling area, which allows for cross-company code controlling.

    • D. 

      To allow for a cross-company code allocation of costs, the controlling area and the company codes assigned must have the same country-specific chart of accounts and the same fiscal year variant.

    • E. 

      You can assign several operating concerns to one controlling area.

  • 4. 
     Which of the following master data are part of SAP CO? (4 correct answers)
    • A. 

      Cost Elements

    • B. 

      Work Centers

    • C. 

      Profitability Segments

    • D. 

      Cost Centers

    • E. 

      Internal Orders

    • F. 

      Activity Types

    • G. 

      Statistical Key Figures

  • 5. 
    • 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.

  • 6. 
     An activity type is a unit in SAP CO that classifies the activities performed in a cost center. Which of the following statements are true regarding activity types in SAP CO? (2 correct answers)
    • A. 

      You can allocate activities manually using direct activity allocation.

    • B. 

      You can assign multiple activity types to one cost center.

    • C. 

      You can assign the same activity type to different cost centers.

    • D. 

      Activity types are defined on company code level.

    • E. 

      You can assign a planned price for one unit of an activity only manually.

  • 7. 
     Which of the following master data groups exist in SAP CO? (3 correct answers)
    • A. 

      Cost Element Group

    • B. 

      Profitability Group

    • C. 

      Cost Center Standard Hierarchy

    • D. 

      Activity Type Group

    • E. 

      Statistics Group

  • 8. 
    • A. 

      An Assessment is an indirect allocation method that is carried out for allocating primary and secondary costs from a sender cost center to receiver controlling objects. Thereby, only cost centers or business processes can serve as sender of the costs.

    • B. 

      An Assessment uses secondary cost elements category 43 to allocate costs.

    • C. 

      Direct Activity allocation is a transaction based method for allocating costs between a sender and receivers directly by using activity types as tracing factor.

    • D. 

      Direct and Manual Cost Allocation can be used to plan costs ahead.

    • E. 

      The Direct Cost Allocation credits the sender cost center and debits the receiver controlling objects by using a secondary cost element with category 42.

  • 9. 
     SAP FI and SAP CO are highly integrated. Which of the following statements are true regarding postings in SAP CO and SAP FI? (1 correct answer)
    • A. 

      Postings to a general ledger account in SAP FI lead to a corresponding posting in SAP CO, if a primary cost element is involved.

    • B. 

      Postings to a general ledger account in SAP FI lead to a corresponding posting in SAP CO, if a secondary cost element is involved.

    • C. 

      You pay an employee wages and therefore credit the P&L account for wages and credit the balance sheet bank account. This posting immediately debits the controlling object using the corresponding primary cost element with the same number as the general ledger accounting. The corresponding credit posting in SAP CO is posted to an allocation cost element.

  • 10. 
     SAP MM and SAP CO are highly integrated. Goods issues that are posted in materials management can be assigned to a cost center. From a cost center point of view, this procedure is referred to as material consumption. Which of the following statements are true regarding this posting? (2 correct answers)
    • A. 

      The combination of material number and movement type determines which inventory and cost accounts are affected.

    • B. 

      A goods issue to a cost center initiates a transaction in financial accounting resulting in debit posting to a material consumption expense account and a credit posting to a material stock account.

    • C. 

      The cost center is debited by the amount of the goods issue by using a secondary cost element.

    • D. 

      There is no posting in Financial Accounting, if the material is not a stock material.

  • 11. 
     Internal orders can be used for many different purposes. Internal order types in SAP CO are... (3 correct answers)
    • A. 

      Overhead orders

    • B. 

      Investment orders

    • C. 

      Orders with expenses

    • D. 

      Controlling Orders

    • E. 

      Accrual orders

    • F. 

      Cost collector orders

  • 12. 
     Cost planning is usually carried out for orders with a long life cycle. There are three cost planning levels for planning internal orders. Those are... (3 correct answers)
    • A. 

      Internal Planning

    • B. 

      Primary/secondary cost and revenue planning

    • C. 

      Cost center planning

    • D. 

      Overall planning

    • E. 

      Unit costing

  • 13. 
     Internal orders serve as interim cost collector and as an aid to plan, monitor and report. When an order is completed, the costs of the internal order must be settled. Which of the following statements are true regarding settling internal orders? (2 correct answers)
    • A. 

      Settlement of costs is controlled by the settlement rule defined in the master data of the involved cost element.

    • B. 

      The Settlement of costs always is involves a secondary cost element.

    • C. 

      The Settlement of costs always is involves a primary cost element.

    • D. 

      Internal orders can be settled to other controlling objects only.

    • E. 

      A settlement rule establishes the sender and receiver relationships as well as how much each receiver will receive during settlement.

  • 14. 
     Which of the following statements are true regarding Profit Center Accounting? (2 correct answers)
    • A. 

      A profit center is an organizational unit in accounting and reflects a management-oriented structure of the organization for the purpose of external control.

    • B. 

      Cost centers can be assigned to profit centers. This assignment is made in the master data of the profit center.

    • C. 

      A profit center can belong to only one controlling area.

    • D. 

      When Profit Center Accounting is active, controlling objects are assigned to a profit center. This assignment causes the system to generate a statistical posting in EC-PCA to the corresponding profit center for each debit or credit posting.

    • E. 

      When Profit Center Accounting is active, controlling objects are assigned to a profit center. This assignment causes the system to generate a real posting in EC-PCA to the corresponding profit center for each debit or credit posting.

  • 15. 
    Which of the following statements are true regarding profit centers? (3 correct answers) 
    • A. 

      Profit centers can be used as a dimension for financial statements.

    • B. 

      Profit centers act as cost collectors similar to cost centers.

    • C. 

      Profit centers can allocate costs to other controlling objects.

    • D. 

      Profit centers can be assigned to cost centers.

    • E. 

      Profit centers cannot be receiver of real postings.

    • F. 

      Profit centers cannot only receive statistical postings.

  • 16. 
     Profitability Analysis is an application in Management Accounting and provides two forms of profitability reporting: costing-based and account-based. Which of the following statements are true regarding these two types of reporting? (3 correct answers)
    • A. 

      Costing-based Profitability Analysis has reports that display values by value field.

    • B. 

      Account-based Profitability Analysis reconciles directly with Financial Accounting at account level.

    • C. 

      Costing-based Profitability Analaysis posts revenues when the billing document is created, but updates cost of sales at the point of goods issue.

    • D. 

      Account-based Profitability Analysis produces revenues and cost of sales simultaneously when the billing document is calculated.

    • E. 

      Account-based Profitability Analysis has reports that display values by cost elements and revenue element.

  • 17. 
    Profitability segments are the most important structure in Profitability Analysis. Which of the following elements are used within profitability segments? (3 correct answers) 
    • A. 

      Characteristic values

    • B. 

      Key values

    • C. 

      Value fields

    • D. 

      Key fields

    • E. 

      Characteristics

  • 18. 
    • A. 

      Marking a price estimate leads to an update of the current price in the material master.

    • B. 

      Releasing a price estimate leads to an update of the future price in the material master.

    • C. 

      For marking a price estimate the cost estimate must be free of errors and marking of the price estimate must be allowed for the particular company code, the period and the particular valuation variant.

    • D. 

      A standard cost estimate can only be released once a period.

    • E. 

      The price estimation procedure uses the routing and the BOM of a material to estimate the costs of production of one unit of the material.

  • 19. 
     Which of the following statements are true for operating concern? An operating concern... (2 correct answers)
    • A. 

      ... can display information for several costing areas.

    • B. 

      ... controls profitability analysis (CO-PA) and represents the structure of the external market segments of a company.

    • C. 

      ... is an organizational structure in CO, which supports profit-center-accounting.

    • D. 

      ... is an organizational structure in CO, which supports profitability analysis (CO-PA).

  • 20. 
     Which cost elements are used to allocate costs via cost allocation from sender to receiver? (1 correct answer)
    • A. 

      Secondary cost elements

    • B. 

      General ledger accounts

    • C. 

      Primary cost elements

    • D. 

      Accrual cost elements

  • 21. 
     Which of the following statements is true for posting logic in FI and CO? (2 correct answers)
    • A. 

      Statistical postings are used for information purposes and are usually used in analyses.

    • B. 

      Documents in FI and CO have the same document number.

    • C. 

      A reposting of primary costs in CO leads to archiving of the original FI-document/post.

    • D. 

      A "real" cost object can be displayed in the line item position of the corresponding FI document.

  • 22. 
    Which of the following master data is defined in cost center accounting? (2 correct answers) 
    • A. 

      Standard hierarchy

    • B. 

      Activity data

    • C. 

      Profit centers

    • D. 

      Statistical key figures

    • E. 

      Internal orders

  • 23. 
    • A. 

      ... assigns costs to cost centers and profitability segments.

    • B. 

      ... are real cost objects.

    • C. 

      ... are used to determine profitability of areas of responsibility in a company.

    • D. 

      ... can be stated in the balance sheet and profit & loss statement.

  • 24. 
    In product cost accounting product cost estimates are carried out. What is determined with a product cost estimate? (1 correct answer) 
    • A. 

      General material cost

    • B. 

      Estimate lot size for a material.

    • C. 

      Actual costs of a material

  • 25. 
    What is the main characteristic of secondary cost elements in CO? (1 correct answer) 
    • A. 

      They are used in FI to transfer values to CO.

    • B. 

      They are defined in FI chart of accounts.

    • C. 

      They support assignment of material stock accounts in CO.

    • D. 

      They are used in CO for company-internal transfers (e.g. assessments or settlements) between CO-objects.

  • 26. 
    Which of the following fields are required to create a cost center in management accounting (CO)? (2 correct answers) 
    • A. 

      User responsible

    • B. 

      Description

    • C. 

      Hierarchy area

    • D. 

      Company code

  • 27. 
    Which of the following management accounting (CO) components requires an operating concern? (1 correct answer) 
    • A. 

      Product Cost Accounting

    • B. 

      Profit Center Accounting

    • C. 

      Overhead Cost Controlling

    • D. 

      Profitability Analysis