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1. Identify the four types of cost adjustments.
A) When a supplier invoice is processed in accounts payable, it can cause an adjustment to the inventory value and the cost of goods sold if the amounts processed for payment are different from the estimated amount on the purchaseorder.
B) Authorized users can manually create cost adjustments.
C) A standard cost update will create an inventory value adjustment.
D) A change to a requisition after the purchase order has been created will create a cost adjustment.
E) A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.
F) A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.
2. If the accounting method on the Subledger Accounting method page has an assigned chart of accounts (COA), which two types of Journal entry rule sets can be used?
A) Rule sets where the accounting rules override the method rule set
B) Rule sets assigned to a secondary ledger with a different COA
C) Rule sets that have a mapping set to convert the accounts
D) Rule sets not associated with any chart of accounts
E) Rule sets that use the same chart of accounts
3. You have configured your expense items to accrue at receipt. You have created a few purchase orders and want to verify that the supplier invoices have been created.
Which accounting entries signal this process has taken place?
A) Debit Charge Account (expense or inventory), Credit Receiving Inspection
B) Debit Expense, Credit Receiving Inspection
C) Debit Expense, Credit Expense Accrual
D) Debit Receiving Inspection, Credit Accrued Liability
E) Debit Accrued Liability, Credit Accounts Payable
4. You can track costs at what granularity level in Cost Accounting for the actual costing method?
A) Grade, Subinventory, Locator, Serial
B) Subinventory, Make, Lot, Serial
C) Subinventory. Lot, Serial, Grade
D) Grade, Serial, Group, Lot
E) Subinventory, Lot, Serial, Locator
5. How is the standard cost of a manufactured configured item calculated?
A) The standard cost of a model item is calculated.
B) It is based on the actual cost of the work order after it is completed.
C) It is based on the material and resource requirements of a released work order.
D) The standard cost is calculated for every possible combination of options under a model
Solutions:
| Question # 1 Answer: A,C,E,F | Question # 2 Answer: D,E | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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