Suitefoundation Exam Study Guide Exam
Questions With Correct Answers
First-In, First-Out (FIFO) - CORRECT ANSWER✔✔-The first goods purchased are
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assumed to be the first goods sold so that the ending inventory consists of the
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most recently purchased goods. This method is useful to track different
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shipments of similar products. | | |
Last-In, First-Out (LIFO) - CORRECT ANSWER✔✔-The last goods purchased are
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assumed to be the first goods sold so that the ending inventory consists of the
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first goods purchased. (not available in the NetSuite Australia (AU) edition).
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Inventory costing is calculated as the total units available during a specific date
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range divided by the beginning inventory cost plus the cost of additions to
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inventory. - CORRECT ANSWER✔✔-Average (moving average method)
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Enables you track standard costs for items and to track variances between these
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expected costs and actual costs. - CORRECT ANSWER✔✔-Standard Costing
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Enables you to track one average cost for an item across multiple locations within
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a defined group. - CORRECT ANSWER✔✔-Group Average Costing
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In NetSuite, (blank) is the default inventory costing method. - CORRECT
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ANSWER✔✔-Average costing |
,If inventory levels are negative, NetSuite uses the (blank) as the inventory costing
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method. - CORRECT ANSWER✔✔-last purchase price
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Can the costing method be changed after it is saved on the item record? -
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CORRECT ANSWER✔✔-No |
When is item cost calculated? - CORRECT ANSWER✔✔-Using any costing method,
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the cost for items is calculated based on the cost shown on the transaction that
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brings the item into inventory.
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What sales transactions affect inventory? - CORRECT ANSWER✔✔-Sales orders,
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Invoices, Cash Sales | |
Do inventory records update automatically with each sale? - CORRECT
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ANSWER✔✔-Yes. Sales are integrated with inventory records. | | | | | |
How does selling an item affect information tracked on the item record if it can
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be filled from the quantity available? - CORRECT ANSWER✔✔-the item is
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committed to the sale | | |
the quantity committed increases
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the quantity available decreases
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the cost of goods sold increases
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What happens if the item cannot be filled from the quantity available? - CORRECT
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ANSWER✔✔-The quantity backordered increases
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, Do drop-ship items affect inventory? - CORRECT ANSWER✔✔-No
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Item is sent directly from your vendor to your customer and the item is not
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processed in your inventory. - CORRECT ANSWER✔✔-Drop Ship Item
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A transaction that specifies that you shipped some or all items on an order to the
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customer. - CORRECT ANSWER✔✔-Item Fulfillment
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Which item types are "always fulfillable/receivable"? - CORRECT ANSWER✔✔-
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Assembly, Kit, Inventory, and Non-inventory items
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Which item types are "never fuflfillable/receivable"? - CORRECT ANSWER✔✔-
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Group, Description, Markup, Payment, and Download items
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Which item types "allow changes to fulfillable/receivable status"? - CORRECT
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ANSWER✔✔-Gift Certificate, Other Charge and Service Items | | | | | |
What should you do if an order includes items that are not yet fulfilled and you
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do not plan to fulfill them? - CORRECT ANSWER✔✔-Close those transaction lines
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Can you change an item's unit type after it has been assigned? - CORRECT
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ANSWER✔✔-No. Also, the units type cannot be edited except to add more units.
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Identify places in your warehouse where you store inventory items - CORRECT
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ANSWER✔✔-Bin Management |
Questions With Correct Answers
First-In, First-Out (FIFO) - CORRECT ANSWER✔✔-The first goods purchased are
| | | | | | | | | |
assumed to be the first goods sold so that the ending inventory consists of the
| | | | | | | | | | | | | | |
most recently purchased goods. This method is useful to track different
| | | | | | | | | | |
shipments of similar products. | | |
Last-In, First-Out (LIFO) - CORRECT ANSWER✔✔-The last goods purchased are
| | | | | | | | | |
assumed to be the first goods sold so that the ending inventory consists of the
| | | | | | | | | | | | | | |
first goods purchased. (not available in the NetSuite Australia (AU) edition).
| | | | | | | | | |
Inventory costing is calculated as the total units available during a specific date
| | | | | | | | | | | | |
range divided by the beginning inventory cost plus the cost of additions to
| | | | | | | | | | | | |
inventory. - CORRECT ANSWER✔✔-Average (moving average method)
| | | | | |
Enables you track standard costs for items and to track variances between these
| | | | | | | | | | | | |
expected costs and actual costs. - CORRECT ANSWER✔✔-Standard Costing
| | | | | | | |
Enables you to track one average cost for an item across multiple locations within
| | | | | | | | | | | | |
a defined group. - CORRECT ANSWER✔✔-Group Average Costing
| | | | | | | |
In NetSuite, (blank) is the default inventory costing method. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Average costing |
,If inventory levels are negative, NetSuite uses the (blank) as the inventory costing
| | | | | | | | | | | | |
method. - CORRECT ANSWER✔✔-last purchase price
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Can the costing method be changed after it is saved on the item record? -
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CORRECT ANSWER✔✔-No |
When is item cost calculated? - CORRECT ANSWER✔✔-Using any costing method,
| | | | | | | | | |
the cost for items is calculated based on the cost shown on the transaction that
| | | | | | | | | | | | | | | |
brings the item into inventory.
| | | |
What sales transactions affect inventory? - CORRECT ANSWER✔✔-Sales orders,
| | | | | | | | |
Invoices, Cash Sales | |
Do inventory records update automatically with each sale? - CORRECT
| | | | | | | | | |
ANSWER✔✔-Yes. Sales are integrated with inventory records. | | | | | |
How does selling an item affect information tracked on the item record if it can
| | | | | | | | | | | | | | |
be filled from the quantity available? - CORRECT ANSWER✔✔-the item is
| | | | | | | | | | |
committed to the sale | | |
the quantity committed increases
| | |
the quantity available decreases
| | |
the cost of goods sold increases
| | | | |
What happens if the item cannot be filled from the quantity available? - CORRECT
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ANSWER✔✔-The quantity backordered increases
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, Do drop-ship items affect inventory? - CORRECT ANSWER✔✔-No
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Item is sent directly from your vendor to your customer and the item is not
| | | | | | | | | | | | | | |
processed in your inventory. - CORRECT ANSWER✔✔-Drop Ship Item
| | | | | | | |
A transaction that specifies that you shipped some or all items on an order to the
| | | | | | | | | | | | | | | |
customer. - CORRECT ANSWER✔✔-Item Fulfillment
| | | |
Which item types are "always fulfillable/receivable"? - CORRECT ANSWER✔✔-
| | | | | | | |
Assembly, Kit, Inventory, and Non-inventory items
| | | | |
Which item types are "never fuflfillable/receivable"? - CORRECT ANSWER✔✔-
| | | | | | | |
Group, Description, Markup, Payment, and Download items
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Which item types "allow changes to fulfillable/receivable status"? - CORRECT
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ANSWER✔✔-Gift Certificate, Other Charge and Service Items | | | | | |
What should you do if an order includes items that are not yet fulfilled and you
| | | | | | | | | | | | | | | |
do not plan to fulfill them? - CORRECT ANSWER✔✔-Close those transaction lines
| | | | | | | | | | |
Can you change an item's unit type after it has been assigned? - CORRECT
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ANSWER✔✔-No. Also, the units type cannot be edited except to add more units.
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Identify places in your warehouse where you store inventory items - CORRECT
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ANSWER✔✔-Bin Management |
