Which of the following are considered FM Master Data Elements?

The correct answer pertains to the specific elements that fall within the framework of Financial Management (FM) master data. FM master data includes fundamental categories and classifications that aid in budgeting, accounting, and financial reporting.

The elements identified in the correct option—Application of Funds, Fund, and Functional Area—reflect core components of financial data structure:

1. Application of Funds delineates how funds are to be allocated across various functions or projects, serving as a guide for financial planning and monitoring.

2. Fund refers to financial resources earmarked for particular purposes, which is essential for effective budgeting as it allows organizations to track revenues and expenditures transparently.

3. Functional Area categorizes operations or activities, enhancing the granularity and accuracy of financial analysis and reporting.

Together, these elements ensure that financial information is structured, which is crucial for managing budgets and making informed financial decisions.

The other options contain financial concepts that are important in their own right but do not represent the foundational categories of FM master data. For instance, personnel costs and revenue relate more to specific accounting entries rather than structural data elements. Similarly, investment and assets focus on financial instruments rather than the categorical classifications used in master data. Lastly, budget shortfall