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C_TFIN22_65 · Question #24

Which of the following views and results do profit center accounting reports in New GL provide? Note: There are 3 correct answers to this question.

The correct answer is A. Return on investment B. Balance sheet statement E. Cost of goods sold. Profit center accounting reports in New GL can provide a balance sheet statement, return on investment (ROI), and cost of goods sold, allowing for a comprehensive view of a profit center's financial performance.

Profit Center Accounting

Question

Which of the following views and results do profit center accounting reports in New GL provide? Note: There are 3 correct answers to this question.

Options

  • AReturn on investment
  • BBalance sheet statement
  • CFixed and variable cost portions
  • DVariance categories of production
  • ECost of goods sold

How the community answered

(39 responses)
  • A
    90% (35)
  • C
    5% (2)
  • D
    5% (2)

Why each option

Profit center accounting reports in New GL can provide a balance sheet statement, return on investment (ROI), and cost of goods sold, allowing for a comprehensive view of a profit center's financial performance.

AReturn on investmentCorrect

By collecting both revenue and relevant asset information at the profit center level, New GL allows for the calculation and reporting of key performance indicators like Return on Investment (ROI) for individual profit centers.

BBalance sheet statementCorrect

With document splitting and profit center update activated, New GL can produce a full balance sheet statement at the profit center level, showing assets, liabilities, and equity attributed to that specific profit center.

CFixed and variable cost portions

Fixed and variable cost portions are typically provided by cost element accounting or contribution margin accounting, not primarily by profit center accounting, which focuses on responsibility accounting and segment-level P&L and Balance Sheet.

DVariance categories of production

Variance categories of production are results typically found in product cost controlling (CO-PC), focusing on differences between planned and actual production costs, not a direct output of profit center accounting.

ECost of goods soldCorrect

Profit center accounting tracks costs and revenues, and with proper assignment, it can report the Cost of Goods Sold (COGS) at the profit center level, contributing to profit and loss analysis.

Concept tested: New GL profit center reporting capabilities

Topics

#Profit Center Accounting#New GL reporting#Balance sheet#Return on investment

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