GFEBS L230E Cost Management Process Overview. | Exam
Revision Questions And Correct Answers | Graded A+ | 2025 Update
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Direct Cost -✔✔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 -✔✔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 -✔✔The value of goods or services received because of an obligation of funds by the
organization performing the work
Unfunded Cost -✔✔A cost that is financed by another organization's or activity's appropriations.
Variable cost -✔✔A cost that changes with a change in output
fixed cost -✔✔A cost that remains the same regardless of a change in output
sunk cost -✔✔A cost incurred in the past that will not be affected by any present or future
decision
incremental cost -✔✔The increase or decrease in cost that would result from a decision to
increase or decrease output levels
avoidable cost -✔✔A cost incurred on an object that will no longer be incurred due to a decision
to change the output.
unavoidable cost -✔✔A cost incurred on an object that will be incurred regardless of the decision
to change
Activity Type -✔✔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 -✔✔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 -✔✔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
WBS -✔✔A WBS element is an activity within the Project used to plan and update cost data.
Some examples of WBS Elements are: tasks, partial tasks, and work packages
Order -✔✔Orders are cost objects used to plan, collect, monitor, and settle the costs of jobs and
tasks
Internal Order -✔✔An object used to track costs and revenues (in some cases) associated with
internal jobs and tasks. Internal Orders are often used to monitor the costs related to shorter-term
projects or those individual services offered by an organization.
Work Order -✔✔A Work Order is a specific task performed on a demand or preventative basis.
Work Orders reside in the Plant Maintenance Module in GFEBS. Work Orders are task-driven and
specific in nature.
Business Process -✔✔is a cost object used to capture costs of cross-functional Cost Center
activities.
Business Processes are the "work" being performed by the Cost Center and Activity Types.
Statistical Key Figure -✔✔is a unit of measure, including quantity or time, by which costs are
reported. For example, the number of people (headcount) served at a meal in a dining facility.
Cost Management Process -✔✔four sub-processes that interact and affect one another.
The sub-processes are:
- Cost Planning
- Cost Accounting
- Cost Analysis
- Cost Controlling
Revision Questions And Correct Answers | Graded A+ | 2025 Update
|
Direct Cost -✔✔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 -✔✔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 -✔✔The value of goods or services received because of an obligation of funds by the
organization performing the work
Unfunded Cost -✔✔A cost that is financed by another organization's or activity's appropriations.
Variable cost -✔✔A cost that changes with a change in output
fixed cost -✔✔A cost that remains the same regardless of a change in output
sunk cost -✔✔A cost incurred in the past that will not be affected by any present or future
decision
incremental cost -✔✔The increase or decrease in cost that would result from a decision to
increase or decrease output levels
avoidable cost -✔✔A cost incurred on an object that will no longer be incurred due to a decision
to change the output.
unavoidable cost -✔✔A cost incurred on an object that will be incurred regardless of the decision
to change
Activity Type -✔✔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 -✔✔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 -✔✔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
WBS -✔✔A WBS element is an activity within the Project used to plan and update cost data.
Some examples of WBS Elements are: tasks, partial tasks, and work packages
Order -✔✔Orders are cost objects used to plan, collect, monitor, and settle the costs of jobs and
tasks
Internal Order -✔✔An object used to track costs and revenues (in some cases) associated with
internal jobs and tasks. Internal Orders are often used to monitor the costs related to shorter-term
projects or those individual services offered by an organization.
Work Order -✔✔A Work Order is a specific task performed on a demand or preventative basis.
Work Orders reside in the Plant Maintenance Module in GFEBS. Work Orders are task-driven and
specific in nature.
Business Process -✔✔is a cost object used to capture costs of cross-functional Cost Center
activities.
Business Processes are the "work" being performed by the Cost Center and Activity Types.
Statistical Key Figure -✔✔is a unit of measure, including quantity or time, by which costs are
reported. For example, the number of people (headcount) served at a meal in a dining facility.
Cost Management Process -✔✔four sub-processes that interact and affect one another.
The sub-processes are:
- Cost Planning
- Cost Accounting
- Cost Analysis
- Cost Controlling
