BPI - Chapters 5 And 6 Exam Questions And
Verified Answers
What type of accounting reports can be generated at any point in time for an ERP
system? - Answer Balance sheets and income statements
What are things that can be found on a balance sheet? - Answer - cash held
- amounts owed to company by customers
- cost of raw materials and finished goods inventory
- long term assets
What are things that can be found on an income statement? - Answer - sales
Cost of goods sold
Profit or loss made during a certain period
What is the effect on the financials by using the integrated IS? - Solution Simplifies the
process of closing the books and preparing the financial statements
What happens to the temporary accounts while closing the books? - Solution The
account balances are closed to retained earnings accounts
What does a material management (MM) module do? - Solution Controls the purchasing
and records changes to inventory
What does a sales representative need to be able to view when an order is placed? -
Answer The account receivable balance
, What are the three components of a manufactured item's cost? - Answer - raw material
cost
- direct labor cost
- overhead
What are inventory costs? - Answer - direct costs: raw material, direct labor
indirect costs: overhead items
standard costs: historic/expected costs
- cost variances: the difference between what actually occurred and what was expected
under standard conditions
Product cost variant: How to develop a product cost in an ERP system
Why is it important to determine product cost? Answer The company will be sure that it
is profitable
Materials to use to find the product cost: Answer - direct labor cost
- direct material cost
What is COGM? - Answer Cost of goods manufactured - total cost of direct materials,
direct labor, and overhead
What is COGS? - Answer Cost of good sold - cost of goods manufactured plus sales and
administration costs
What is ABC? - Answer Activity based costing - allocates overhead costs to products
What is intercompany transaction? - Answer A transaction that occurs between
companies and their subisdies
What is a document? - Answer A transaction captured in SAP
Verified Answers
What type of accounting reports can be generated at any point in time for an ERP
system? - Answer Balance sheets and income statements
What are things that can be found on a balance sheet? - Answer - cash held
- amounts owed to company by customers
- cost of raw materials and finished goods inventory
- long term assets
What are things that can be found on an income statement? - Answer - sales
Cost of goods sold
Profit or loss made during a certain period
What is the effect on the financials by using the integrated IS? - Solution Simplifies the
process of closing the books and preparing the financial statements
What happens to the temporary accounts while closing the books? - Solution The
account balances are closed to retained earnings accounts
What does a material management (MM) module do? - Solution Controls the purchasing
and records changes to inventory
What does a sales representative need to be able to view when an order is placed? -
Answer The account receivable balance
, What are the three components of a manufactured item's cost? - Answer - raw material
cost
- direct labor cost
- overhead
What are inventory costs? - Answer - direct costs: raw material, direct labor
indirect costs: overhead items
standard costs: historic/expected costs
- cost variances: the difference between what actually occurred and what was expected
under standard conditions
Product cost variant: How to develop a product cost in an ERP system
Why is it important to determine product cost? Answer The company will be sure that it
is profitable
Materials to use to find the product cost: Answer - direct labor cost
- direct material cost
What is COGM? - Answer Cost of goods manufactured - total cost of direct materials,
direct labor, and overhead
What is COGS? - Answer Cost of good sold - cost of goods manufactured plus sales and
administration costs
What is ABC? - Answer Activity based costing - allocates overhead costs to products
What is intercompany transaction? - Answer A transaction that occurs between
companies and their subisdies
What is a document? - Answer A transaction captured in SAP
