Deck 5: Accounting in ERP Systems

Question 1

SAP ERP's management reporting tools use data in data warehouses.

Answer 1

True

Question 2

The capability of viewing summary information and then being able to look at details behind the summary is known as data mining.

Answer 2

False

Question 3

Activity based costing means keeping track of instances of activities as well as their costs.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

An ERP system could have prevented all fraud at Enron.

Question 8

Having ERP will let a company use more cost allocation bases.

Question 9

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

Question 10

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

Question 11

Activity based costing is a way of treating overhead costs more like direct costs.

Question 12

User authorizations help prevent fraud and abuse by employees paying fictitious vendors.

Question 13

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

Question 14

It's very easy to delete items in the ERP system.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

In SAP ERP an event's "document flow" can be accessed from any SAP ERP screen.

Question 21

Each transaction in SAP ERP gets its own unique number.This is known as: ____.

A) Uniqueness numbering
B) Document flow
C) Auditing codes
D) Unique codes

Question 22

The following is an example of Fitter Snacker's Income Statement.

Question 23

The following is an example of Fitter Snacker's Balance Sheet.

Question 24

Tolerance groups allow for limiting the authority of employees over certain amounts of transactions.

Question 25

The following screen in SAP is an example of production planning.

Question 26

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

Question 27

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 28

The following SAP screen is an example of document flow.

Question 29

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

Question 30

Periodically,companies summarize the balances in the books of account.This process is called: ____.

A) Cost accounting
B) Account closure
C) Periodic closure
D) Closing the books
E) Statement wrap-up

Question 31

The following is an example of Fitter Snacker's Income Statement.

Question 32

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 33

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

A) ABC, activity-based costing
B) BOC, backoffice costing
C) ROTM, run of the mill costing
D) POC, plant operation costing

Question 34

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 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 35

A specialized database used for data analysis purposes is called a: ____.

A) data warehouse
B) drill down store
C) document flow
D) document pile
E) data union

Question 36

The following is an example of Fitter Snacker's Balance Sheet.

Question 37

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

Question 38

Assume a company records its transactions in an ERP system.On the shop floor,a production run has just been finished and the finished goods are transferred to the warehouse for storage.What would a likely way be to tell the ERP system about this event?

A) The bar codes on the goods are scanned as they enter the warehouse. The data generated is passed to the ERP database electronically.
B) A Production clerk summarizes the data in an Excel spreadsheet and sends the spreadsheet to Accounting. An Accounting clerk enters the data from the spreadsheet into the ERP program's Materials and Production modules.
C) The bar codes on the goods are scanned as they come off the production line. The data generated is passed to the ERP system's Production module electronically. Then bar codes on the goods are scanned as they enter the warehouse. The data generated is passed to the ERP database electronically.

Question 39

____ are often allocated based on total machine hours or total labor hours.

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

Question 40

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

Question 41

For Fitter Snacker,the sum of direct materials,production overhead,and direct labor is the ____.

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 42

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 43

This is Fitter Snacker's ____.

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

Question 44

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

A) Labor
B) Overhead
C) Driver
D) Selling cost

Question 45

What is the following? ____________________

Question 46

Another name for an income statement is a ____.

A) Credit
B) Profit and Loss
C) Sales
D) Revenue

Question 47

What is the following? ____________________

Question 48

This is Fitter Snacker's ____.

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

Question 49

Given that 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 50

If Fitter Snacker's cost of making a case of bars is $209.82,and 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) $0.72

Question 51

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

Question 52

Describe the general ledger with regard to SAP ERP.

Question 53

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

Question 54

In a company that has an ERP system the accountants talk in terms of "data flows between modules" and "sharing data between modules".Why are the accountants speaking imprecisely? I.e.,why are "data flows between modules" and "sharing data between modules" misnomers if an ERP system is used?

Question 55

The following screen in SAP is an example of ____.

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

Question 56

A manufactured item has three cost elements.State what they are and briefly explain the nature of each.

Question 57

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

A) Generated yearly
B) Not available
C) Reports
D) Modules

Question 58

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 has come 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 59

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

Question 60

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 61

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

Question 62

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

Question 63

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

Question 64

What is the significance of the following screen in SAP from an Accounting standpoint?

Question 65

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

Question 66

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 67

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

Question 68

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