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Question ID 3250

Consider the following scenario for Inventory Item B.
1)    Standard Cost: $10
2)    Purchase Order Line Quantity: 100; Purchase Order Line Price: $12
3)    Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery
4)    Received Quantity: 40
5)    Invoice Price: $14; Invoiced Quantity: 20
Which option describes the effect on different accounts correctly?
 

Option A

A.    Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280
 

Option B

B.    Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280
 

Option C

C.    Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $80; Debit Purchase price Variance Account $40; Credit AP Liability Account $280
 

Option D

D.    Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance Account $40; Credit Purchase Price Variance Account $80; Debit AP Liability Account $280
 

Correct Answer B
Explanation


Question ID 3251

Identify four ways in which sourcing rules significantly improve efficiency of procurement processes. (Choose four.)
 

Option A

A.    Allowing you to transfer from one supplier site to the other, if It is a global supplier.
 

Option B

B.    Assigning sourcing rules at the item or item-organization level using an assignment set.
 

Option C

C.    Giving you the ability to identify the priority to be given to the local sites of a global supplier.
 

Option D

D.    Sourcing the highest percentage of an item from only those suppliers who ranked the highest.
 

Option E

E.    Allowing you to identify the most efficient shipping method to be used for a specific sourcing rule,
 

Option F

F.    Automatically allocating planned orders across different suppliers based on predetermined criteria such as rank and percentage.
 

Correct Answer B,C,E,F
Explanation

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