True or False: A profit center is classified as a real cost object.

Prepare for the SAP Integrated Business Processes in SAP S/4HANA Exam. Enhance your skills with multiple choice quizzes, flashcards, and detailed explanations for each question. Gear up for success!

A profit center is typically considered an internal organizational unit within a company that is responsible for generating revenue and controlling costs. It is primarily used for performance measurement and financial reporting.

In terms of classification, profit centers focus on evaluating profitability and are not categorized as real cost objects. Real cost objects are typically associated with the costs incurred for the production of goods or services, such as cost centers or internal orders, which are aimed at tracking actual spending against budgets to manage expenses effectively.

Since profit centers are designed to provide a broader view of financial performance related to revenues generated rather than just tracking costs, classifying them as real cost objects does not align with their intended purpose. Therefore, stating that a profit center is classified as a real cost object is incorrect, making the statement false.

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