Suitefoundation Exam Study Guide
Questions And All Complete Solutions.
First-In, First-Out (FIFO) - 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) - 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. - Answer Average (moving average
method)
Enables you track standard costs for items and to track variances between these expected costs and
actual costs. - Answer Standard Costing
Enables you to track one average cost for an item across multiple locations within a defined group. -
Answer Group Average Costing
In NetSuite, (blank) is the default inventory costing method. - Answer Average costing
If inventory levels are negative, NetSuite uses the (blank) as the inventory costing method. - Answer
last purchase price
Can the costing method be changed after it is saved on the item record? - Answer No
When is item cost calculated? - 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? - Answer Sales orders, Invoices, Cash Sales
Do inventory records update automatically with each sale? - 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? - 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? - Answer The quantity
backordered increases
Do drop-ship items affect inventory? - Answer No
Item is sent directly from your vendor to your customer and the item is not processed in your inventory. -
Answer Drop Ship Item
A transaction that specifies that you shipped some or all items on an order to the customer. - Answer
Item Fulfillment
Which item types are "always fulfillable/receivable"? - Answer Assembly, Kit, Inventory, and Non-
inventory items
Which item types are "never fuflfillable/receivable"? - Answer Group, Description, Markup, Payment,
and Download items
Which item types "allow changes to fulfillable/receivable status"? - 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? - Answer Close those transaction lines
Can you change an item's unit type after it has been assigned? - Answer No. Also, the units type cannot
be edited except to add more units.
Identify places in your warehouse where you store inventory items - Answer Bin Management
What's the inventory impact of building an assembly? - Answer decreases the asset accounts of
member items
increases asset account of the assembly
What's the inventory impact of fulfilling a kit? - Answer decreases the asset account of member items
What's the inventory impact of fulfilling a group? - Answer decreases the asset account of member
items
What's the impact of Assemblies on G/L Accounts? - Answer able to identify a Cost of Goods Sold
(COGS), income, and asset account separate from its components' accounts
What's the impact of Kit/Package on G/L Accounts? - Answer able to identify a separate income
account
What's the impact of Item Group on G/L Accounts? - Answer No account designation available
Is Assembly pricing dependent on its members' prices? - Answer No. Item price is independent of its
members' prices.
Is Kit/Package pricing dependent on its members' prices? - Answer No. Item price is independent of its
members' prices.
Is Item Group pricing dependent on its members' prices? - Answer Yes.
Questions And All Complete Solutions.
First-In, First-Out (FIFO) - 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) - 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. - Answer Average (moving average
method)
Enables you track standard costs for items and to track variances between these expected costs and
actual costs. - Answer Standard Costing
Enables you to track one average cost for an item across multiple locations within a defined group. -
Answer Group Average Costing
In NetSuite, (blank) is the default inventory costing method. - Answer Average costing
If inventory levels are negative, NetSuite uses the (blank) as the inventory costing method. - Answer
last purchase price
Can the costing method be changed after it is saved on the item record? - Answer No
When is item cost calculated? - 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? - Answer Sales orders, Invoices, Cash Sales
Do inventory records update automatically with each sale? - 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? - 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? - Answer The quantity
backordered increases
Do drop-ship items affect inventory? - Answer No
Item is sent directly from your vendor to your customer and the item is not processed in your inventory. -
Answer Drop Ship Item
A transaction that specifies that you shipped some or all items on an order to the customer. - Answer
Item Fulfillment
Which item types are "always fulfillable/receivable"? - Answer Assembly, Kit, Inventory, and Non-
inventory items
Which item types are "never fuflfillable/receivable"? - Answer Group, Description, Markup, Payment,
and Download items
Which item types "allow changes to fulfillable/receivable status"? - 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? - Answer Close those transaction lines
Can you change an item's unit type after it has been assigned? - Answer No. Also, the units type cannot
be edited except to add more units.
Identify places in your warehouse where you store inventory items - Answer Bin Management
What's the inventory impact of building an assembly? - Answer decreases the asset accounts of
member items
increases asset account of the assembly
What's the inventory impact of fulfilling a kit? - Answer decreases the asset account of member items
What's the inventory impact of fulfilling a group? - Answer decreases the asset account of member
items
What's the impact of Assemblies on G/L Accounts? - Answer able to identify a Cost of Goods Sold
(COGS), income, and asset account separate from its components' accounts
What's the impact of Kit/Package on G/L Accounts? - Answer able to identify a separate income
account
What's the impact of Item Group on G/L Accounts? - Answer No account designation available
Is Assembly pricing dependent on its members' prices? - Answer No. Item price is independent of its
members' prices.
Is Kit/Package pricing dependent on its members' prices? - Answer No. Item price is independent of its
members' prices.
Is Item Group pricing dependent on its members' prices? - Answer Yes.
