Check your knowledge

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Answer the following questions to see what you've learned.

1.

Why do companies use cost accounting?

Because this is legally required in most countries and regions

To get better insights on the unit cost of each individual item

Because they only care about profit and loss and therefore don't want to use balance sheet accounts.

To help them understand the costs of running a business

2.

On the Cost Accounting Setup page, you set the Align G/L Account field to Automatic. What is the result of this action?

If users change the chart of accounts, the program automatically makes a corresponding change in the chart of cost types.

If users change the chart of cost types, the program automatically makes a corresponding change in the chart of accounts.

Both a and b are correct.

Changes in the chart of accounts are applied to the chart of cost types by using the Get Cost Types from Chart of Accounts function.

3.

Which one of the following statements is true?

When the Check G/L Postings field on the Cost Accounting Setup page is selected, the system will check if the dimension value that is used in the transaction is created as a cost type or cost object.

The Chart of Cost Types is an exact copy of the Chart of Accounts.

Only a one-on-one relation is possible between the dimension values and the cost centers that are set up.

Because no Balance to allocate field exists on the Cost Object Card page, it isn't possible to allocate cost objects.

You must answer all questions before checking your work.