BPIC final practice questions
Terms in this set (66)
Preventive or Detective
The policies and procedures in place to mitigate risks can be ___________ or ______________.
1. Completeness Check
2. Field Check
3. Limit Check
4. Range Check
5. Reasonableness Check
6. Sign Check
7. Size Check
8. Validity Check
9. Closed-Loop Verification
10. Zero Balance Test
What are the 10 IT Controls?
All required data for record/transaction has been entered before user can continue.
Ensures that data entered is the proper type.
Numbers in amount fields, text in data fields. What is the IT control in place?
Tests the amount against a "floor" or "ceiling" limit.
Customer order against available credit, regular hours worked can't go over 40. What is the IT control in place?
Like a limit check but has both an upper and lower limit. Typically to ensure efficiencies are maintained.
For each purchase of cushions for the rocking chairs you have to order at least 5, but not more than 1,000. What is the IT control in place?
Applies logic between categories to determine potential anomalies.
$5,000 a day for office supplies versus $5,000 for raw materials. What is the IT control in place?
Is the number entered the appropriate sign (positive/negative)?
Data will 'fit" into appropriate field.
Zipcodes: 5 or 9 digits, Telephone numbers: 10 digits, G/L account numbers: XXX digits. What is the IT control in place?
Compares entered data to standing data.
Customer number entered on a PO to customer list, PO number entered on a receiving report to open POs. What is the IT control in place?
Works with Validity Check, and displays supplementary information so the user can ensure that correct data is being utilized.
When a vendor number is entered on a PO, the vendor name also populates. What is the IT control in place?
Zero Balance Test
Compares numerical data to a pre-determined result.
Zero Balance Test
In journal entries,
Debits - Credits = 0. What is the IT control in place?
Custody, recording, authorization. You cannot commit and conceal errors or fraud.
What are the three components of segregation of duties? What is the basic purpose of them?
________ specify exactly what each user ID is allowed to do in SAP.
Materials Management (Procurement Logistics)
Purchasing, invoice verification, inventory management, warehouse management.
Production/MRP (Production Logistics)
MRP, production orders, bills of materials, work centers, routing instructions, batch management.
Sales and Distribution (Sales Logistics)
Order entry, picking/packing/shipping, invoicing, inquiries, quotes, sales reporting.
Financial Accounting (Support Process)
General ledger, A/R, A/PAY financial reporting, cash management legal consolidation.
Cost Accounting (Support Process)
Cost accounting and internal reporting by cost center, internal order, project, profit center, or other unit, profitability analysis.
The highest level in a SAP instance. A ______ is a self-contained unit with a separate set of master records and its own set of configuration tables. An instance (installation) can have more than one _______ (e.g., a training _______, a testing _______, and a production ______). In using SAP the user logs on to a particular ______ that usually has a three digit numeric identifier.
Represents an independent legal accounting entity that contains a balanced set of books as required by law or regulation. A client may have more than one ________ ______ (e.g. a ________ ______ for the US, one for Germany, one for Canada, etc.)
System and technical functions of the SAP system itself. These data drive the logic of the applications within the system and is primarily used for defining the details of business processes.
The various business entities present in the system, both internal and external, standing data.
A business event or may be the result of a business process.
________ are business partners that are suppliers of materials or services to the firm.
Vendor Master Record
In order to facilitate purchases from these external vendors, a _______ _______ ______ is set up within the SAP system, includes vendor name, address, tax jurisdiction code, language, payment terms, currency to be used.These are the data items that will be of use each time a purchase is initiated with the particular vendor and do not change frequently.
When a vendor master record is created in SAP, the choice can be made to let the system assign a _________ _________, becomes the key value used to track business activities with the vendor.
Purchasing Info Record
In many cases a company may wish to purchase a given material from one particular vendor. The info record establishes the link between a given material and specific vendor.
Material Master Record
All materials within the SAP system are tracked through the use of a ________ ________ ________.
An internal document (one that is used within the company only) that instructs the purchasing department to initiate steps to buy a material or procure a service by a certain date. The request may come from an individual who is authorized to request such a purchase or it may come from the MRP.
Materials Requirement Planning (MRP)
If we want to make 100 rockers, we need to be sure we have 100 woodkits and 100 cushions ready to "issue" to the production floor.
A legally binding instruction from a purchasing organization to a vendor to deliver a quantity of material or to perform a service at a given time at an agreed upon price.
When ordered materials arrive from the vendor, a _______ _________ must be processed in order to receive the material into inventory and update the quantity records for the material.
The ________ ___________ component of the Materials Management (MM) system provides the link between the Materials Management and the Financial Accounting, Controlling, and Asset Accounting components.
Bill of Materials
"Recipe" of a finished good. Contains part numbers, quantities, etc. Very specific.
Job Order Costing
Distinct product, costs are tracked by job or batch
Large batches of homogenous products and average cost per product is determined.
________ can either be applied to product costs based on hours worked, units produced or by using an Activity Based Costing driver. ABC drivers: RENT allocated by square feet, PURCHASING COSTS allocated by number of POs, SUPERVISORY costs allocated by number of employees, etc.
Raw Materials, Work in Process (Direct Labor + Manufacturing Overhead), Finished Goods
What is the basic inventory account flow?
Thorough description of what must be done, how long it should take and "where" the work will be done. Production line, Assembly centers, Certain employees, and Machines, machine groups
The type of order proposal which is automatically generated during materials planning depends on the procurement type of the material.
In the case of external procurement, the system creates either planned orders or directly creates ________ __________.
Planned orders are converted into production orders for __________ production and into purchase requisitions for _________ procurement.
"How" goods get to customers.
Distribution Channel that is direct to customer.
Distribution Channel that sell to retailer (who sells to final customer)
Template for sales orders, can be used over and over.
Salesperson can run an inquiry to get what the final prices will be for a customer (including discounts, etc.)
Master Data Used (Standing Data)
Customer master records
Material master records (finished goods, trading goods).
All sales that are recorded exist (made to legitimate customers who can and will pay).
Revenue Recognition. When is it a sale? When is "SALES" credited? When is it okay to credit sales?
A sales organization can be subdivided into several distribution chains which determine the responsibility for an organizational element.
Customer Master Record
In order to avoid data redundancy, accounting data and sales and distribution data are stored in one master record.
Person or company that places an order for goods or services.
Person or company that receives the goods.
Person or company that receives the invoice for a delivery or service.
Customer Material Information Record
The data in this record includes the customer-specific material number, the customer-specific material description, and customer-specific data on deliveries and delivery tolerances.
A customer's request to a company that they provide a quotation or sales information without obligation thereby representing actually a request for a quotation.
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