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Question 20 - C_TS410_2022 discussion

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Which object is created to report on market characteristics, such as customer, product, and region?

A.

Sales organization

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A.

Sales organization

B.

Profit center

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B.

Profit center

C.

Profitability segment

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C.

Profitability segment

D.

Segment

Answers
D.

Segment

Suggested answer: C

Explanation:

In SAP, a Profitability Segment (C) is the object used to report on market characteristics such as customer, product, and region. Profitability segments are part of the Profitability Analysis (CO-PA) functionality, which allows businesses to analyze financial data by various market segments to make informed decisions regarding pricing, product mix, and target markets.

A Sales Organization (A) is an organizational unit in SAP that sells products and services, negotiates sales conditions, etc., but is not specifically used for reporting on market characteristics.

A Profit Center (B) is used for internal controlling purposes and represents a separate area of responsibility for which the revenues and costs can be analyzed, but it does not inherently report on market characteristics.

A Segment (D) in financial reporting (under IFRS 8 and similar standards) refers to distinguishable components of an entity that are engaged in providing individual products or services or a group of related products and services. However, in the context of SAP, the term 'profitability segment' is more directly associated with reporting on market characteristics.

asked 31/10/2024
Osman Rana
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