Question

The module that handles internal accounting including cost center accounting, activity based accounting, and budgeting is?

1) human resources
2) controlling and profitability analysis
3) financial accounting
4) customer relationship management

Answer 1

The module known for handling internal accounting tasks such as cost center accounting, activity based accounting, and budgeting is Controlling and Profitability Analysis (CO-PA). It is a part of ERP systems aiding in management and financial reporting. An example of its use is calculating accounting profit by subtracting total costs from sales revenue.

Step-by-step explanation:

The module that handles internal accounting, which includes cost center accounting, activity based accounting, and budgeting, is referred to as Controlling and Profitability Analysis (CO-PA). This module is part of larger Enterprise Resource Planning (ERP) systems and is used to support businesses in their management and financial reporting activities. The Controlling (CO) aspect focuses on the internal accounting and cost management, while Profitability Analysis (PA) helps in analyzing the profit or loss of an organization.

To provide an example of how this module works: If a firm had sales revenue of $1 million last year, and spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be the difference between the sales revenue and the total costs. In this case, the accounting profit would be $50,000 ($1,000,000 - $600,000 - $150,000 - $200,000).