Deck 5: Accounting in Erp Systems

Question 1

Using standard costs to accumulate manufacturing costs means that the company does not have to keep track of actual manufacturing costs.

Answer 1

False

Question 2

The Sarbanes-Oxley Act requires that financial statements filed with the SEC include a statement signed by the chief executive officer and chief financial officer,certifying that the financial statement complies with the SEC rules.

Answer 2

False

Question 3

It is very easy to delete items in the ERP system.

Answer 3

False

Question 4

A Business Warehouse system is a completely separate information system that extracts data from the ERP system.

Question 5

The SAP ERP system has a module called Accounting and Finance.

Question 6

With an ERP system,the job of tracking all the data required for a financial report can be a monumental undertaking.

Question 7

In a manufactured item,the cost of heating the plant would be considered part of the item's raw materials.

Question 8

When a company has an ERP system,the general ledger is maintained by the ERP system.

Question 9

When a company has an ERP system,it no longer needs a general ledger.

Question 10

The cost of heating the plant would be considered part of manufacturing overhead.

Question 11

In an ERP system,data does not flow from one module to another.

Question 12

The U.S.Congress passed the Sarbanes-Oxley Act of 2002 in response to the fraud and abuse in the Enron collapse.

Question 13

The term drill down refers to the ability to view the details behind a summary of information.

Question 14

An income statement shows a company's profit or loss in a period of time.

Question 15

SAP ERP has sophisticated user administration tools that allow different levels of authorization management,to ensure that employees can perform only the transactions required for their jobs.

Question 16

In SAP ERP access to general ledger accounts is spread over many modules.

Question 17

Having ERP will require a company to restrict the number of cost allocation bases.

Question 18

Activity-based costing treats overhead costs as more direct than traditional cost-accounting methods have treated them.

Question 19

In activity-based costing,overhead costs are assigned to products based on the manufacturing activities that gave rise to the costs.

Question 20

ERP systems help in resolving conflicts in goals,standardizing basic processes,and controlling product costs.

Question 21

Which financial statement shows account balances such as,cash held,amounts owed to the company by customers,the cost of raw materials and finished goods inventory?

A)Income statement
B)Balance sheet
C)Tolerance group
D)Year end report

Question 22

Assume that a buyer calls a seller to order $3,000 worth of goods and her credit limit is $10,000.If the sellers accounts receivable for the customer is already $8,500,how much of the new order will be accepted?

A)The entire amount
B)$1,500 only
C)No amount
D)$10,000 only

Question 23

Figure 2
Figure 2 is an example of Fitter Snacker's Income Statement.

Question 24

What are the manufacturing costs that include factory utilities,general factory labor such as custodians or security guards,factory managers' salaries,storage,insurance,and other manufacturing-related costs?

A)Direct costs
B)Plant costs
C)Overhead costs
D)Manmade costs

Question 25

Figure 2
Figure 2 is an example of Fitter Snacker's Balance Sheet.

Question 26

Another name for an income statement is a profit and loss statement.

Question 27

Figure 1
Figure 1 is an example of Fitter Snacker's Balance Sheet.

Question 28

The key feature of any ERP system is the ability to drill down from a report to the source documents (transactions)that created it.

Question 29

Figure 3
Figure 3 is an example of document flow.

Question 30

Figure 1
Figure 1 is an example of Fitter Snacker's Income Statement.

Question 31

In the SAP ERP system,inputs to the general ledger occur simultaneously with input of business transactions to the various modules.

Question 32

When finished goods are transferred from the assembly line to the warehouse,an employee in the warehouse records the transaction using a terminal or a barcode scanner.Which SAP ERP module records this change?

A)Materials Management
B)Asset Management
C)Sales and Distribution
D)Controlling

Question 33

Which general ledger document tracks the amount of money that a customer owes for the goods received by the customer?

A)Balance sheet
B)Accounts receivable
C)Accounts payable
D)Income statement

Question 34

In an ERP system,the balance sheet and P&L statements are database reports.

Question 35

Tolerance groups make sure employees do not exceed their authority in financial transactions.

Question 36

Managerial accounting deals with determining the costs and profitability of the company's activities.

Question 37

The process of transferring balances for temporary or nominal accounts,such as revenue,expense,gain,and loss,to the retained earnings account is called ____.

A)cost accounting
B)account closure
C)periodic closure
D)closing the books
E)statement wrap-up

Question 38

In ____,activities associated with overhead cost generation are identified and then records are kept on the costs and on the activities.

A)activity-based costing
B)backoffice costing
C)run of the mill costing
D)plant operation costing

Question 39

Each transaction in SAP ERP gets its own unique number,which acts as an index to the appropriate database table entries.This is known as ____.

A)document reference
B)document flow
C)auditing codes
D)unique codes

Question 40

Figure 3
Figure 3 is an example of production planning.

Question 41

What are the three cost elements for a manufactured item?

Question 42

COMPLETION

Figure 2
Figure 2 is Fitter Snacker's ____________________.

Question 43

In a company that has an ERP system the accountants talk in terms of "data flows" between modules.Why are the accountants not accurate,and what is a better term for them to use?

Question 44

Figure 1
Figure 1 is Fitter Snacker's ____.

A)Balance Sheet
B)Income Statement
C)Credit Report
D)Document Flow

Question 45

Describe the general ledger with regard to SAP ERP.

Question 46

Figure 3
Figure 3 is an example of ____.

A)Production Planning
B)MRP
C)Document Flow
D)Configuration Settings

Question 47

How does ERP facilitate "drilling down" to see the details of transaction data?

Question 48

Another name for an income statement is a ____ statement.

A)credit
B)profit and loss
C)sales
D)revenue

Question 49

In an ERP system,the balance sheet and P&L statements are ____.

A)generated yearly
B)not available
C)database reports
D)modules

Question 50

Assume Fitter Snacker's existing information systems are in place.FS has a customer called First State TastyBars.Here is the background data on FS and First State TastyBars:
An order came in from First State TastyBars:

There are some documents in FS's system as follows:

A)Given the state of FS's systems,will credit be granted or denied on the current order (purchase order FST 1003)?
B)What is the actual First State TastyBars accounts receivable balance (without considering the current order)?
C)If the FS systems processed transaction data in a more timely way would credit be granted or denied? Why?

Question 51

What is the advantage to credit management in SAP ERP?

A)Marketing and Sales get weekly reports.
B)The data is in real-time.
C)Payments are posted daily.
D)There is no advantage.

Question 52

Figure 1
Figure 1 is Fitter Snacker's ____________________.

Question 53

If the cost of manufacturing NRG-A bars is $0.72 per bar,how much does FS need to charge to make a profit of $0.25?

A)$1.00
B)$0.99
C)$0.97
D)$1.25

Question 54

Assume a company has many foreign-based subsidiaries.In what ways can ERP improve preparation of consolidated financial statements?

Question 55

The key pieces of information for cost analysis is the direct material costs and the ____.

A)direct labor cost
B)overhead cost
C)driver cost
D)selling cost

Question 56

With a properly configured and managed ERP system,there are direct links between the company's ____________________ and individual transactions that make up the statements,so that fraud and abuse can be detected more easily.

Question 57

If Fitter Snacker's cost of making a case of bars is $209.82.There are 24 bars to a box and 12 boxes to a case.How much money does it cost Fitter Snacker to make each individual bar?

A)$17.49
B)$1.00
C)$8.74
D)$0.73

Question 58

What is the sum of direct materials,production overhead,and direct labor?

A)COGM - cost of goods manufactured
B)COGS - cost of goods sold
C)COGP - cost of goods produced
D)COGS - cost of goods shipped

Question 59

Any business events that occur between companies and their subsidiaries are known as ____________________.

Question 60

Figure 2
Figure 2 is Fitter Snacker's ____.

A)Balance Sheet
B)Income Statement
C)Credit Report
D)Document Flow

Question 61

What are the key features of the Sarbanes-Oxley Act?

Question 62

What are the implications of the Sarbanes-Oxley Act for ERP systems?

Question 63

List ways in which an ERP system can prevent or minimize fraud in a company.

Question 64

What are the two main accounting challenges when closing the books for companies with overseas subsidiaries?

Question 65

Explain how activity based costing would be implemented using an ERP system.In doing that,explain the advantage of using ERP with activity based costing.

Question 66

Figure 3
What is the significance of the accompanying figure in SAP from an accounting standpoint?

Question 67

Explain how SAP ERP built-in management reporting and analysis tools are an advantage to an organization.

Question 68

Why is developing product costs in a large company such a time-consuming task? Why is an integrated system an advantage?