BCSE ERP Production Planning (PP) and Controlling (CO) 2

Question 1

What is 'standard cost' in SAP CO Product Costing?

Accepted Answer

A predetermined cost calculated based on planned material, labor, and overhead rates used as a benchmark

Answer

The average historical cost of a material

Answer

The vendor's list price for a material

Answer

The last purchase price of a material

Question 2

What is a 'cost element' in SAP CO?

Accepted Answer

A classification that links General Ledger accounts to SAP CO for cost reporting and analysis

Answer

A component part in a BOM

Answer

A budget approval level

Answer

A production step in a routing

Question 3

What is 'profitability analysis' (CO-PA) in SAP Controlling?

Accepted Answer

An analysis of profitability by market segments such as customer, product, region, or sales channel

Answer

A financial statement audit

Answer

A cost center budget review

Answer

A vendor profit margin assessment

Question 4

What is 'variance analysis' in SAP PP/CO?

Accepted Answer

Comparing actual production costs against standard costs to identify and analyze differences

Answer

Checking statistical data variances

Answer

Analyzing workforce schedule variations

Answer

Reviewing budget forecast deviations only

Question 5

What is 'internal order' in SAP CO?

Accepted Answer

A cost collector used to monitor costs for a specific task, project, or event with a defined timeframe

Answer

An order placed between company departments

Answer

A production order for internal consumption

Answer

A journal entry between cost centers

Question 6

What does 'settlement' mean in the context of SAP CO internal orders?

Accepted Answer

Transferring accumulated costs from an internal order to a final receiver such as a G/L account, cost center, or asset

Answer

Paying a vendor invoice

Answer

Closing a financial posting period

Answer

Settling a customer dispute