SAP Financial Accounting (SAP FI) Practice Exam

Which cost objects can be assigned to an asset master record?

1. Sales order and cost center

2. Cost center and internal order

3. WBS element and sales order

4. Cost center, internal order, and WBS element

The correct answer is: Cost center, internal order, and WBS element

An asset master record in SAP can indeed be associated with various cost objects, which helps in tracking the costs associated with the asset. The correct answer identifies that a cost center, internal order, and WBS (Work Breakdown Structure) element can all be assigned to an asset master record. A cost center allows businesses to assign costs to specific departments or functions, enabling better cost control and management. By linking a cost center to an asset, organizations can allocate financial resources and assess performance against budgetary targets. Internal orders provide a more granular tracking mechanism for costs, often used for temporary projects or tasks. They are particularly useful for monitoring expenses that may not tie directly to conventional accounting practices. Associating an internal order with an asset facilitates the control and analysis of costs incurred during the asset’s lifecycle. WBS elements from project management allow for comprehensive project planning and tracking associated costs. By associating assets with WBS elements, companies can ensure that the asset costs are properly allocated to the specific project phases or tasks they support, which is crucial for effective project accounting. This multi-dimensional tracking through various cost objects helps organizations to gain better insights into the total costs of asset management and supports strategic financial planning. Understanding how these relationships work in SAP is essential for effective