Online 1D0-1074-25-D Practice Test

Question 1

Identify two characteristics of an expense pool. (Choose two.)

Options :

A :

It helps you analyze under-absorption and over-absorption of expenses that you want to capitalize onto thebalance sheet as inventory value.

B :

It is a user-defined entity that represents a grouping of expenses that you want to absorb with resource and overhead rates.

C : You can define the name of your expense pool, but you cannot define more than one.

D : It isused only for analyzing gross margins on noninventory sales of services.

Answer: A,B

Question 2

Identify the four types of cost adjustments.

Options :

A : A change to a requisitionafter the purchase order has been created will create a cost adjustment.

B :

A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.

C : A standard cost update will create an inventory value adjustment.

D : Authorized users can manually create cost adjustments.

E :

When a supplier invoice is processed in accounts payable, it can cause an adjustment to the inventory value and the cost of goods sold if the amounts processed for payment are differentfrom the estimated amount on the purchase order

F :

A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.

Answer: C,D,E,F

Question 3

You are explaining the characteristics of a "profit in inventory" cost element to a client. Which three statements describe true characteristics of this cost element?

Options :

A : It is only used when you do not need to maintain an arm-s length relationship.

B :

It can help you understand true margins and value added by internal business units through the internal supply chain.

C : It can help you with consolidated financial reporting.

D :

It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in different business units.

E :

It is a special type of cost element that helps you keep track of internal markups when inventory is transferred between inventory organizations that are in the same business unit.

Answer: B,C,D

Question 4

A manager has decided to close the period by not allowing any new transactions, except for correctionsand

adjustments, which can happen any time before the period is closed permanently.

Which cost period status will allow the system to perform the transaction?

Options :

A : Open

B : Closed

C : Permanently Closed

D : Never Opened

E : Close Pending

Answer: E

Question 5

You are trying to import the purchase order information into Receipt Accounting in the Schedule Process work area. Why can't you see this process?

Options :

A : Purchase order information is automatically sent to Receipt Accounting using a real-timemethod

B : This process can only be scheduled and run from the Receipt Accounting work area

C : You do not have the role to import purchase order information into Receipt Accounting.

D :

All purchase order information is included in the Transfer Transactionsfrom Receiving to Costing process. There is no separate process

E : Purchase order information should not be imported into Receipt Accounting.

Answer: D

EXPERTY DESIGNED 1D0-1074-25-D PRACTICE TEST