Question 1

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

Question 2

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 3

Your client only wants to cost inventory items and third party costs. Which two modules are they required to implement to ensure this functionality?

Options :

A : Receipt Accounting

B : Cost Accounting

C : Landed Cost Management

D : Inventory Management

E : Product Model

Answer: A,B

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

Identify the four types of cost adjustments.

Options :

A : A change to a requisitionafter the purchase order has been created will create a cost adjustment.

B : A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.

C : A standard cost update will create an inventory value adjustment.

D : Authorized users can manually create cost adjustments.

E : 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 differentfrom the estimated amount on the purchase order

F : A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.

Answer: C,D,E,F

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