To what object can you settle an internal order?

The correct answer is D. Fixed asset. Internal orders can be settled to various objects for cost monitoring and analysis. Two common settlement receivers for internal orders are Profit Centers (C) and Fixed Assets (D). Settling to a Profit Center allows the allocation of costs for internal reporting and performance…

Management Accounting

Question

Options

AStatistical key figure
BEquipment
CProfit center
DFixed asset

How the community answered

(69 responses)

A
12% (8)
B
6% (4)
C
1% (1)
D
81% (56)

Explanation

Internal orders can be settled to various objects for cost monitoring and analysis. Two common settlement receivers for internal orders are Profit Centers (C) and Fixed Assets (D). Settling to a Profit Center allows the allocation of costs for internal reporting and performance measurement, while settling to a Fixed Asset is used for capitalization of costs associated with the construction or acquisition of assets.

Topics

#internal order settlement#fixed asset#order settlement#management accounting

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