A company has recently deployed Microsoft Dynamics 365 Finance.You have been hired as a Functional Consultant.
Your role will include the management of the Dynamics 365 Finance system and to provide training for members of the Accounts team.
You are providing training on the cost accounting module in the Dynamics 365 Finance system.
Which of the following statements describes a cost entry?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cost-accounting/terms-cost-accountingSure, I'd be happy to explain the concept of a cost entry and the answer options provided.
In the context of cost accounting in Dynamics 365 Finance, a cost entry refers to a record of a cost transaction that has occurred in the system. The cost entry captures information about the amount, nature, and source of the cost, as well as the cost object(s) to which it is assigned.
Now, let's examine the answer options:
A. Used to distribute cost from one cost object to one or more other cost objects by applying a relevant allocation base.
This answer option describes a cost allocation, which is a process of distributing costs from one cost object to other cost objects based on a certain allocation base, such as labor hours or machine usage. However, this does not fully capture the concept of a cost entry, which also includes the initial recording of the cost.
B. Used to allocate the balance of a cost object to other cost objects by applying an allocation base
This answer option also describes a cost allocation, but specifically one that allocates the remaining balance of a cost object to other cost objects based on an allocation base. Again, this does not fully capture the concept of a cost entry.
C. Represents the cost structure. The structure determines how cost flows in a hierarchical order between cost object dimensions and their respective cost objects.
This answer option describes the concept of a cost structure, which is a framework for organizing and analyzing costs within a business. The cost structure includes various dimensions (such as department, product, or geography) and their respective cost objects (such as cost centers or projects). While important for understanding cost accounting in Dynamics 365 Finance, this answer option does not fully describe a cost entry.
D. The result of a transfer via data connectors from general ledger entries, cost allocations, and posted cost entries in cost journals.
This answer option comes closest to describing a cost entry. It refers to the fact that cost entries can be generated through various sources, such as general ledger entries, cost allocations, and posted cost entries in cost journals. When these transactions are posted to the system, they generate cost entries that reflect the changes to the cost objects affected.
Therefore, the correct answer is D - a cost entry is the result of a transfer via data connectors from general ledger entries, cost allocations, and posted cost entries in cost journals.