TERP10 Unit 13 Management Accounting
You were speaking to the director of a company earlier, he/she requested a functionality in SAP CO for business planning and decision-making on contribution margins. What would you investigate and demonstrate to him/her the part of SAP CO that can meet his/her requirements ?
(Select ONE best answer)
A) CO-ABC or Activity Based Costing.
B) CO-PCC or Product Cost Controlling.
C) CO-PCA or Profit Center Accounting.
D) CO-PA or Profitability Analysis.
E) CO-COC or Cost Object Controlling.
.
Answer: D
ReplyDeleteProfitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as sales organizations or business areas, with respect to your company's profit or contribution margin.
ReplyDeleteThe aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision-making.
Two forms of Profitability Analysis are supported: costing-based and account-based.
. Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
. Account-based Profitability Analysis is a form of profitability analysis organized in accounts and using an account-based valuation approach. The distinguishing characteristic of this form is its use of cost and revenue elements. It provides you with a profitability report that is permanently reconciled with financial accounting.