1.    What is the purpose of variance analysis?
Variance analysis is used to calculate and interpret differences between planned costs and actual cost within a cost center or cost center group.  It also provides vital information that can be used to modify and improve planning in subsequent periods.

2.    All variances in SAP can be classified as what two types of variances?
•    Input Side Variance
•    Output Side Variance
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1.    [True] or False? Posting actual cost in Controlling involves the transferring of primary costs from other modules to Controlling, as well as moving costs within Controlling.

2.    List the two main types of actual posting to CO.
There are two types of actual postings to CO, Transaction Based Postings and Periodic Allocations.

Transaction Based Postings (also known as Transaction based allocations) are posted on a real-time basis from other modules or within CO.  This enables up-to-the-minute reporting of costs incurred on the cost centers at any time during the period.  There are four transaction-based postings to CO:

From other modules:
•    Direct postings to cost centers from other modules, such as FI, AM, and MM.

Within CO:
•    Reposting
•    Activity Allocation
•    Posting of Statistical Key Figures.
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1.    True or False?  In SAP Integrated Planning Cycle the planning process begins with a Profit Plan.
False, in SAP Integrated Planning Cycle the planning process begins with a Sales Plan

2.    True or False?  Sales volumes calculated in sales planning or order volumes stored in the Sales Information System (SIS) can be fed into Production Process.
True, sales volumes calculated in sales planning or order volumes stored in the Sales Information System (SIS) can be fed into Production Process.
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1.    List the five types of master data in cost center accounting (CCA).
•    Cost centers
•    Cost elements
•    Activity types
•    Statistical key figures
•    Resources

2.    What characteristics do the master data types in CCA share?
•    Time dependency (except for SKF)
•    Can not be deleted once transaction data has been posted (except for SKF and resources)
•    Can be arranged in groups (except for SKF)
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1.    True or False?  A controlling area has a one to one relationship with company codes.

False.  A controlling area has a one to one relationship with the chart of account and, a one to many relationship with company codes.

2.    After the controlling area has been configured, the assignment of company codes cannot be changed.

[True] or False.

3.    When a number of company codes are assigned to a controlling area, cross company code accounting is possible.  However, each company code must share what three attributes:

•    The same chart of accounts
•    The same fiscal year variant and year end date (the same fiscal year variant must be assigned to the controlling area and to all attached company codes)
•    The same standard hierarchy of cost centers
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