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Question 14 - C_TS410_2022 discussion

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Which of the following is the basic organizational unit in Management Accounting?

A.

Cost Center

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A.

Cost Center

B.

Client

Answers
B.

Client

C.

Company Code

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C.

Company Code

D.

Controlling Area

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D.

Controlling Area

Suggested answer: D

Explanation:

The basic organizational unit in Management Accounting within SAP S/4HANA is the Controlling Area (D). The Controlling Area is the central organizational unit within CO (Controlling) that consolidates cost and revenue information. It is used to monitor and document costs within the company. The Controlling Area can encompass one or more company codes, allowing for cross-company code cost accounting, providing a comprehensive view of the financial performance across different parts of the organization.

A Cost Center (A) is an organizational unit within a Controlling Area that represents a defined location of cost incurrence. It is used for internal control purposes rather than being a foundational organizational unit in Management Accounting.

A Client (B) is the highest hierarchical level in SAP and represents a corporate group. It is not specific to Management Accounting.

A Company Code (C) is an independent accounting unit, representing the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

asked 31/10/2024
Bates, Michael
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