BCSE ERP Production Planning (PP) and Controlling (CO) 2 — Questions and Answers
Question 1: What is 'standard cost' in SAP CO Product Costing?
- The average historical cost of a material
- A predetermined cost calculated based on planned material, labor, and overhead rates used as a benchmark (Correct answer)
- The vendor's list price for a material
- The last purchase price of a material
Correct answer: A predetermined cost calculated based on planned material, labor, and overhead rates used as a benchmark
Standard cost in SAP CO is a pre-calculated cost estimate based on planned quantities and prices from BOM and routing, used as a benchmark for variance analysis.
Question 2: What is a 'cost element' in SAP CO?
- A component part in a BOM
- A classification that links General Ledger accounts to SAP CO for cost reporting and analysis (Correct answer)
- A budget approval level
- A production step in a routing
Correct answer: A classification that links General Ledger accounts to SAP CO for cost reporting and analysis
Cost elements in SAP CO are classifications that correspond to G/L accounts and enable costs to be captured and reported in the Controlling module for management analysis.
Question 3: What is 'profitability analysis' (CO-PA) in SAP Controlling?
- A financial statement audit
- An analysis of profitability by market segments such as customer, product, region, or sales channel (Correct answer)
- A cost center budget review
- A vendor profit margin assessment
Correct answer: An analysis of profitability by market segments such as customer, product, region, or sales channel
CO-PA (Profitability Analysis) in SAP Controlling analyzes company profitability by market segments, combining revenues and costs to show margins by customer, product line, or geography.
Question 4: What is 'variance analysis' in SAP PP/CO?
- Checking statistical data variances
- Comparing actual production costs against standard costs to identify and analyze differences (Correct answer)
- Analyzing workforce schedule variations
- Reviewing budget forecast deviations only
Correct answer: Comparing actual production costs against standard costs to identify and analyze differences
Variance analysis in SAP CO compares actual costs incurred during production against standard costs to identify and categorize reasons for differences, such as price or quantity variances.
Question 5: What is 'internal order' in SAP CO?
- An order placed between company departments
- A cost collector used to monitor costs for a specific task, project, or event with a defined timeframe (Correct answer)
- A production order for internal consumption
- A journal entry between cost centers
Correct answer: A cost collector used to monitor costs for a specific task, project, or event with a defined timeframe
Internal orders in SAP CO collect and monitor costs for specific, often short-term tasks or events (like a trade show or office renovation) that don't warrant a full project structure.
Question 6: What does 'settlement' mean in the context of SAP CO internal orders?
- Paying a vendor invoice
- Transferring accumulated costs from an internal order to a final receiver such as a G/L account, cost center, or asset (Correct answer)
- Closing a financial posting period
- Settling a customer dispute
Correct answer: Transferring accumulated costs from an internal order to a final receiver such as a G/L account, cost center, or asset
Settlement in SAP CO transfers the costs collected on an internal order or production order to their final cost receivers (G/L accounts, assets, cost centers) at period end.
BCSE ERP Production Planning (PP) and Controlling (CO) 2
What is 'standard cost' in SAP CO Product Costing?