Online Access Free 1z1-987 Exam Questions

Identify the four types of cost adjustments.

• A.Authorized users can manually create cost adjustments.
• B.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 different from the estimated amount on the purchase order.
• C.A change to a requisition after the purchase order has been created will create a cost adjustment.
• D.A retroactive purchase order price adjustment can cause an adjustment to the inventory value and the cost of goods sold.
• E.A standard cost update will create an inventory value adjustment.
• F.A revenue recognition event, which in turn triggers a cost of goods sold recognition event, can cause a cost adjustment.

Identify two ways that standard cost is calculated.

• A.The cost of a configured item is calculated based on the work definition of the model item.
• B.Users must manually enter the cost of each configured item; the calculation is not automated.
• C.The standard cost is the sum of the cost of the selected option items.
• D.The standard cost of the configured item is based on the purchase order price quoted by the supplier for the configured item.
• E.The roll-up calculation can be performed to update standard costs for Cost Accounting purposes

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?

• A.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.
• B.It is only used when you do not need to maintain an arm's length relationship.
• C.It can help you with consolidated financial reporting.
• D.It can help you understand true margins and value added by internal business units through the internal supply chain.
• 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.

Which two types of costs are included in the cost of contract manufactured items?

• A.Manufacturer will charge to make the outputs and would normally be enough to cover their costs and include a fair profit.
• B.The cost of Items that the contract manufacturer had to purchase to perform the contract manufacturing service, and the cost of resources used by the contract manufacturer
• C.The cost of items that the original equipment manufacturer (OEM) owns and has provided to the contract manufacturer for use in the process of making the output Items
• D.The cost of the contract manufacturing service Item. This is the price that the contract
• E.The cost of resources consumed at the OEM's factory

You need to simulate and estimate landed cost charges associated with purchase order receipts of material.
What must you create to make this possible?

• A.Orders
• B.Charge Name
• C.Routes
• D.Trade Operation
• E.Cost Scenario