GFEBS L230E COST MANAGEMENT PROCESS OVERVIEW QUESTIONS WITH CORRECT ANSWERS

Direct Cost CORRECT ANSWER A cost such as labor, materials, or supplies that can be traced directly to producing a specific output of an organization, product, and service Indirect Cost CORRECT ANSWER A cost that cannot be traced directly to a specific organization, product, and/or service output They often are allocated on a predetermined basis and generally are synonymous with overhead costs such as general and administrative expenses. Funded Cost CORRECT ANSWER The value of goods or services received because of an obligation of funds by the organization performing the work Unfunded Cost CORRECT ANSWER A cost that is financed by another organization's or activity's appropriations. Variable cost CORRECT ANSWER A cost that changes with a change in output fixed cost CORRECT ANSWER A cost that remains the same regardless of a change in output sunk cost CORRECT ANSWER A cost incurred in the past that will not be affected by any present or future decision incremental cost CORRECT ANSWER The increase or decrease in cost that would result from a decision to increase or decrease output levels avoidable cost CORRECT ANSWER A cost incurred on an object that will no longer be incurred due to a decision to change the output. unavoidable cost CORRECT ANSWER A cost incurred on an object that will be incurred regardless of the decision to change Activity Type CORRECT ANSWER An Activity Type is the cost master data that represents a group of resources within a Cost Center. These resource groups have capacity and a unit of measure such as: labor hours, machine hours, square footage, etc. Activity Types are used to produce the products and services of the organization. Cost Center CORRECT ANSWER A Cost Center is a responsibility center on which costs are incurred. It has an operational manager who is accountable for the resources consumed to produce the cost center's output. Project CORRECT ANSWER A Project is an object used to plan, collect, monitor, and control costs for large scale time-based events in Project Systems, when extensive scheduling and resource management capabilities are required. Projects have definite start and end dates