Question

Which of the following original Management Accounting objects can you assign in the asset master record? There are 3 correct answers to this question.

1) Activity type
2) Cost element
3) Order
4) Cost center

Answer 1

In management accounting, the original objects assignable in the asset master record are Order, Cost center, and Activity type; these enable detailed tracking and control of assets for accounting purposes.

Step-by-step explanation:

In management accounting, when it comes to asset master records, there are specific objects that can be assigned to enable effective cost tracking and asset control. These records help associate assets with different aspects of accounting management for more detailed reporting and analysis.

The following are the original Management Accounting objects that can typically be assigned in the asset master record:

• Order - This is where costs are collected for a specific task or project, and is an internal object.
• Cost center - It represents a location where costs occur within an organization and is used for controlling purposes.
• Activity type - It is associated with the cost center and denotes what type of activity the asset is used for in terms of producing output.

On the other hand, a cost element is not directly assignable in the asset master record but is used in conjunction with these objects to categorize costs for accounting purposes.