• The various CO components can be classified into different groups. The classification indicates the general purpose of a given component.
• Management of an enterprise requires the use of different tools for different situations. If you want to analyze profit, for example, then you need a tool appropriate to the view you wish to take (e.g., by product or by responsibility center). The Profitability Accounting component group has two tools (components) that are available for addressing this business need.
• Similarly, the Overhead Cost Controlling and Product Cost Controlling component groups offer tools appropriate to other types of business requirements.
• Overhead Cost Controlling:
– Cost and Revenue Element Accounting
– Cost Center Accounting
– Overhead Order Accounting
– Activity-Based Costing
• Product Cost Controlling:
– Product Cost Planning
– Cost Object Controlling
– Actual Costing/Material Ledger
• Profitability Analysis
Profit Center Accounting