Question 1

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 2

Which four steps need to be completed to establish standard costs for a make item?

Options :

A : Run preprocessor.

B : Complete cost roll-up.

C : Publish costs

D : Export item costs.

E : Add standard costs to a cost scenario.

F : Create a new cost scenario.

Answer: B,C,E,F

Question 3

Your client wants to set up some of their items as expenseitems and then enable them to be accrued at periodend for one of their business units.Which two configurations will support this request?

Options :

A : Product Information Item > Search and select item > Specifications > Manufacturing > Verify that Inventory AssetValue is set to "No"

B : Manage Common Options for Payables and Procurement > Select the business unit > Expense Accruals > Set Accrue Expense Items to Period End.

C : Configure Procurement Business Function > Select the business unit > Set SelectReceipt Close Point to Accrue at Period End.

D : Product Information Item > Search and select the expense item > Specifications > Manufacturing > Verify that Inventory Asset Value is set to "Yes".

E : Configure Procurement Business Function > Select the business unit > Set Select Receipt Close Point to Accrue at At Receipt.

F : Manage Common Options for Payables and Procurement > Select the business unit > Expense Accruals > Set Accrue Expense Items to At Receipt.

Answer: A,B

Question 4

Which two rules determine whether a condition has been met for accounting rules?

Options :

A : When the condition is met, the rule associated with thatpriority is used.

B : Priorities determine the order in which accounting rule conditions are examined.

C : The conditions are evaluated in the sequence they are defined in the accounting rule.

D : After all conditions are tested, the final resulting value isused.

E : Use parenthesis to control the order of the condition evaluation.

Answer: A,B

Question 5

Which statement is true regarding the cost cutoff date in Cost Accounting?

Options :

A : It only affects whether or not you can process a cost adjustment.

B : Transactions with a transaction date after the cost cutoff date will not be processed until the cost cutoffdate is changed to a date that is later than the transaction date.

C : Transactions with a transaction date after the cost cutoff date will not be processed. These transactions will never be processed in any subsequent cost processor run.

D : Transactions with a transaction date before the cost cutoff date will not be processed until the cost cutoff date is changed to a date that is before the transaction date.

Answer: B

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