Question 1

You have configured your expense items to accrue at receipt. You have created a few purchase orders andwant to verify that the supplier invoices have been created.Which accounting entries signal this process has taken place?

Options :

A : Debit Charge Account (expense or inventory), Credit Receiving Inspection

B : Debit Accrued Liability, Credit Accounts Payable

C : Debit Receiving Inspection, Credit Accrued Liability

D : Debit Expense, Credit Receiving Inspection

E : Debit Expense, Credit Expense Accrual

Answer: C

Question 2

Identify three characteristics of cost component to cost element mapping.

Options :

A : You cannot modify, duplicate, or create user-defined cost components.

B : You can onlydefine one cost component to cost element mapping for an installation.

C : It is one of the attributes you define as part of your cost profile definitions.

D : It is user-defined.

E : It lets you define how cost component level costs will map into cost elements.

Answer: C,D,E

Question 3

You are explaining the characteristics of a "profit in inventory" cost element to a client. Which three statements describe true characteristics of this cost element?

Options :

A : It is only used when you do not need to maintain an arm-s length relationship.

B : It can help you understand true margins and value added by internal business units through the internal supply chain.

C : It can help you with consolidated financial reporting.

D : It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in different business units.

E : It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in the same business unit.

Answer: B,C,D

Question 4

Your client originally used Quick Setup to configure Cost Accounting However, after reviewing their costingpolicies, they realize that they want to cost some of their lotsdifferently then othersWhat must they do to accomplish this?

Options :

A : Quick Setup generates valuation units so they just have to access those valuation units and make their changes.

B : They cannot change their current configuration; data generated by Quick Setup cannot be changed.

C : They must create their valuation units manually.

D : Quick Setup generates one valuation unit so they can access this to make changes and manually create new valuation units.

Answer: C

Question 5

A manager has decided to close the period by not allowing any new transactions, except for correctionsandadjustments, which can happen any time before the period is closed permanently.Which cost period status will allow the system to perform the transaction?

Options :

A : Open

B : Closed

C : Permanently Closed

D : Never Opened

E : Close Pending

Answer: E