Determine the Difference Between Internal and External Cost Reporting Principles of Cost Analysis and Management Show Slide #1: Determine the difference between Internal and External Cost Reporting References: FM 1-06 Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise with answer key FM 1-06. All required references and technical manuals will be provided by the School House. Learner Material: Learners should possess standard classroom supplies, course handouts, practical exercises, FM 1-06. All required references and technical manuals will be provided by the School House.  

What Do Accountants Do? Show Slide #2: Concrete Experience Facilitator’s Note: (Concrete Experience 5 minutes) discuss with Learners what it is exactly that: “What do Accountants do”; Ask Learners what their thoughts on the discussion. Facilitator’s Note: (Publish and Process 5 minutes) the critical portion of this part of the ELM process is to force the Learners to reflect. Ask a series of thought influencing questions, for example: Q1: There will be various backgrounds in your audience. Ask each one to expand on their personal? Q2: What happens in their workplace versus how could it relate to this lesson? Q3: What was your reaction to the analytical data necessary for good accounting? This is a good chance to find out what Learners understand about accounting. Let them give their suggestions and write them up on the board. Depending upon the Learners’ level of sophistication and knowledge, you will get answers from that range from: Crunch numbers Prepare reports Keep records Etc. What you will most likely have at the end of this brief exercise is a list of TASKS that accountants perform with an ultimate goal in mind. We will talk about that goal on slide #4.

Terminal Learning Objective Action: Determine the difference between Internal and External Cost Reporting Condition: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international students) you must: Define the 4 characteristics of accounting information for cost reporting Determine the difference between internal and external cost reporting Classify GFEBS reports as internal or external cost reports Show Slide #3: TLO Action: Determine the difference between Internal and External Cost Reporting Condition: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international students) you must: Define the 4 characteristics of accounting information for cost reporting Determine the difference between internal and external cost reporting Classify GFEBS reports as internal or external cost reports Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29. Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. Instructional Lead in: This is a good chance to find out what Learners understand about accounting. Let them give their suggestions and write them up on the board. Depending upon the Learners’ level of sophistication and knowledge, you will get answers from that range from: Crunch numbers, prepare reports, Keep records, Etc. Throughout the lesson discussion seek opportunities to link the competencies with the lesson content through the Learner’s experiences.

What Do Accountants Do? INFORMATION USEFUL Provide INFORMATION that is USEFUL to Decision Makers Information must be RELIABLE Free from Bias Verifiable Information must be RELEVANT Will make a difference in the decision Timely – frequency and lag time Relevance is in the eye of the User RELIABLE Free from bias Verifiable RELEVANT Will make a difference in the decision Timely – frequency and lag time Relevance is in the eye of the user Show Slide #4: What do Accountants do? 1. Learning Step Activity 1: Define the 4 characteristics of accounting information for cost reporting Method of Instruction: DSL (large or small group discussion) Facilitator to Learner Ratio: 2:25 Time of Instruction: 30 minutes Media: Power Point, Printed Reference Material Facilitator's Note: Before facilitating this lesson, ask the students which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the students still believe their choice are the same. Note: For this lesson these competencies should be talked about.   Communication and Engagement (Oral, written, and negotiation) Critical thinking, intergovernmental, and multinational competence Tactical and Technical Competence Facilitator’s Note: Advance slide (Facilitate discussion using the slide) Provide INFORMATION that is USEFUL to Decision Makers Emphasize information aspect--Must be useful information. Information is more than just numbers, it must be presented in a meaningful way. One of the first elements of useful information is that it must be reliable – accurate, trustworthy. Reliable accounting information must be free from bias. That means that the preparer of the information does not have a predetermined outcome in mind when preparing the information, other than reporting the true picture of the organization’s activity and position. Reliable information must also be verifiable. That means that another individual would be able to apply the accounting principles to the same situation and achieve the same results. Accounting information must be RELEVANT Relevant information is the kind of information that will influence a person’s decisions. Facilitator's Note: Discuss that in order for information to be relevant, it must be timely. Timeliness has two dimensions: frequency and lag time Frequency means that the information is produced frequently enough so that the users can update their decisions and make course corrections if necessary. This is situation specific. If you are driving a car, you need information updated probably at least every second or so. That is, you can look away from the road briefly but if you look away for more than a few seconds the results can be disastrous. If you are managing your checkbook, you probably need to update every few days, or perhaps after every purchase. If you are managing your organization’s budget, you probably need updates at least every month, possibly more frequently. Lag time is the time elapsed from the end of the reporting period until the information is available to the user. Most annual reporting is not complete until at least three months after the end of the year. By then it is too late to make budget decisions to impact the year that is in progress, and possibly even too late to impact the year after that. You’ve heard that beauty is in the eye of the beholder. It can also be said that relevance is in the eye of the user.

Who are the Users? Users may be INTERNAL or EXTERNAL Internal users are: Managers and Leaders What types of Decisions might they make? What information might they need? External users are: Investors, Creditors, Regulators and Legislators Internal users are: Managers and leaders What types of decisions might they make? What information might they need? External users are: Show Slide #5: Who are the users? Users may be INTERNAL or EXTERNAL Facilitator’s Note: Advance slide (Facilitate discussion using the slide) Internal users are: Managers and Leaders What types of Decisions might they make? What information might they need? What would Managers want to know? Performance measurements Trends for budgeting Compare competing proposals for investments Cost per unit of output This depends greatly on what level of manager and what kind of organization Facilitator’s Note: Advance slide (Facilitate discussion using the slide Facilitator's Note: Inform the audience that external users are: Investors, Creditors, Regulators and Legislators What would prospective investors want to know? Compare two potential investments The federal government essentially competes with for-profit corporations for investor dollars. The investor will need information to help him or her choose between entities. Is my investment safe? What return on my investment can I expect? What would creditors what to know? Bill paying ability. Will I be paid in full and on time? Does the organization have sufficient assets to cover its debts? Does it have sufficient cash flow? Trends--can the organization continue in the long run? What would regulators want to know? Is the organization in compliance with applicable laws and regulations? What would Legislators want to know? Legislators need to compare different programs. They will make policy decisions – which programs to fund and how much? What are the outcomes of this program? What would taxpayers want to know? How is the organization performing overall? How is the tax money being used? External users are: Investors, creditors, regulators, legislators and citizens What types of decisions might they make? What information might they need?

External User Needs Examining an organization’s performance over time demands Consistency same manner over multiple time periods Deciding whether to fund competing organizations or programs demands Comparability Assures that the information from all organizations is prepared according to the same set of principles Assures users that the information is prepared in the same manner over multiple time periods Show Slide #6: External User Needs Facilitators Note: (Facilitate discussion using the slide) by examining an organization’s performance over time, this demands Consistency. Facilitator’s Note: Advance slide (Facilitate discussion using the slide) Facilitator's Note: Discuss how consistency assures users that the information is prepared in the same manner over multiple time periods. Consistency is necessary for legislators and investors. It is also useful for creditors in determining trends. Consistency is NOT so important for internal users. Internal users might find that their information needs change, or they might find that there is a better way of presenting the information. They should not be bound by an external demand for consistency. Facilitator’s Note: Discuss the fact that deciding whether to fund competing organizations or programs demands Comparability Comparability assures that the information from all organizations is prepared according to the same set of principles. This is crucial for legislators who are deciding which programs to fund. It is also useful for citizens who wish to compare different organizations’ performance. But it is not necessary for managers who are only interested in making decisions within their own organizations. Comparability Assures that the information from all organizations is prepared according to the same set of principles

Consistent Combat Ship periscope landing gates ballistic missiles torpedo tubes flight deck helicopter pad Show Slide #7: Consistent Combat Ship Facilitator's Note: (Facilitator read and facilitate discussion using the slide) consistency in external reporting is like having one uniform “consistent” combat ship. The consistent combat ship would have several advantages for the Navy. They would only have to stock one kind of fuel. Parts would be interchangeable. It would be easy to compare one ship’s performance with another: Fuel consumption, staffing requirements and ammunition use would be standardized. However, serious problems arise when you think about what this ship might look like. It would need a flight deck for at sea takeoffs and landings. It would also need a submersible hull, periscope and conning tower for underwater operation. This might complicate aircraft landings, but the engineers could figure out a way to make it work. It would need all types of weapons: ballistic missiles (could complicate landings and takeoffs: another job for the engineers) cruise missiles, 16” guns, torpedo tubes. It would also need landing gates for beach assaults by the Marines. These would need to be integrated with the torpedo tubes. Those engineers will be busy… Could such a ship be built? Yes. Would it be expensive? Very. And it probably wouldn’t do any of the jobs very well. Consistent cost systems pose many of the same problems. They could be designed to do all of the jobs for everyone, but they would be very expensive and wouldn’t do any one job very well. 16" guns submersible hull cruise missiles

LSA #1 Check on Learning Q1. Which characteristic requires timely information? A1. Relevance Q2. Which characteristic requires verifiable information? A2. Reliability Show Slide #8: LSA #1 Check on Learning: Facilitator’s Note: Ask check on learning question, facilitate discussion on answer given. Q1. Which characteristic requires timely information? Relevance Q2. Which characteristic requires verifiable information? Reliability Q3. Why would users demand consistency? To compare performance of an organization over multiple time periods. Q3. Why would users demand consistency? A3. To compare performance of an organization over multiple time periods

LSA #1 Summary In this block we discussed the role and duties of the accounting officer. We also discussed both Internal and External users are and what their needs are. Show Slide #9: LSA #1 Summary Facilitator's Note: In this block we discussed the role and duties of the accounting officer. We also discussed both Internal and External users are and what their needs are.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #10: Two Sides of the same Coin 2. Learning Step Activity Step 2. Determine the difference between internal and external cost reporting Facilitator to Learner Ratio: 2:25 Time of Instruction: 40 minutes Media: Power Point, Printed Reference Material Facilitator's Note: (Facilitate discussion using the slide) that External and Internal reporting are like two sides of the same coin. In fact, they represent two very different ways of looking at the same dollar.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #11: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) that, while “user need” is listed last in this picture, it is really the driving force behind the differences between the two types of reporting. External reporting is designed to meet the needs of external users, namely consistency and comparability. Internal reporting, otherwise known as managerial costing, is designed to meet the needs of internal users or managers. Managers need information to support the continuous improvement effort.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #12: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) the two methods differ in PURPOSE. External reporting is required by law. Internal reporting, also known as managerial costing, is needed by management

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #13: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) that the two types of reporting have different goals. The goal of external reporting is COMPLIANCE. The report is demanded by external users, and the organization must comply with the requirement. Reports that are prepared because they are required or mandated by an external entity are, by definition, external reports. The goal of managerial costing is LEARNING. That is internal users gather the type of information needed to help them evaluate past performance and decisions, and learn to improve future performance and decisions. These types of reports are prepared because management finds them useful, and the benefit of the information they provide outweighs the cost of providing the information.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #14: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) external reporting methodology is, of necessity, structured. That is, there is an externally specified set of reports that must be produced according to an externally specified format. Internal reporting is customized to the needs of the managers who use them. The managers can specify what elements of information are needed to support their decision processes, and the format in which that information should be presented.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #15: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) the test of success for external reporting is passing the audit. The test of success of managerial costing or internal reporting is whether or not management actually uses the information to make decisions.

Two Sides of the Same Coin external reporting managerial costing required compliance structured audit stable consistency & comparability purpose goal methodology test dynamics user need needed learning customized use responsive continuous improvement Show Slide #16: Two Sides of the same Coin (Cont.). Facilitator's Note: (Facilitate discussion using the slide) lastly, the dynamics of external reporting are stable. That is, the information requirements don’t change frequently or quickly, because all organizations are subject to those same information requirements, and costly systems are built to produce the required information. There is a lengthy process involved in changing external reporting requirements. In contrast, internal reporting should be responsive to managerial needs. If managers find that a different type of reporting would better suit their decision making process, the system should adapt to their needs.

Example External Report: Tax Return Internal Report: Checkbook Why? How? Test of success? Dynamics? Why? How? Test of success? Dynamics? Show Slide #17: Example(s) Facilitator's Note: Ask the pertinent questions. Allow Learners to expand on their personal experiences. Why do you prepare a tax return? Because it is required by law. Why do you keep your checkbook? Because it is useful to you for managing cash. How do you prepare a tax return? According to the required form. You might even pay someone to do it for you, or use software to assure that it is prepared according to IRS specifications. How do you keep your checkbook? There are probably as many ways as there are Learners in this classroom. Each person keeps the check register in the way that makes sense to him or her. Some people call the bank or check online to see how much money they have. Others might keep meticulous records and balance to the penny each month. Some round to the nearest dollar or make adjustments to the checkbook balance as needed. How do you know if you have been successful in preparing your tax return? If you pass the audit (or avoid the audit). The audit, or at least the threat of audit is needed because there is considerable incentive to cheat on your taxes. How do you know if you have been successful in keeping your check register? That depends upon your purpose. If you don’t bounce checks, that is one indication of success. If you meet your financial goals (investment, retirement, major purchases) that would be another test of success. But you, the user, determine whether your methodology is successful, not some outside entity. There is no need for an audit because there is no incentive to cheat yourself. Finally, what about the dynamics? The tax return is relatively stable. It changes as tax laws change, which require, quite literally, an act of Congress. The dynamics of your check register change as your needs change. If you wish to change from a paper check register to a computer based system such as Quicken or Microsoft Money, you can do so without anyone’s approval but your own.

Research: System Uses at 59 Federal Organizations Show Slide #18: Research: System uses at 59 Federal Organizations Facilitator's Note: Carefully explain that these diagrams represent the uses of cost systems at 59 federal organizations that described themselves as having cost accounting systems. The organizations were surveyed regarding their use of cost accounting information along four dimensions of cost system use: Required costing (vertical upper axis) Overhead allocation (horizontal left axis), Pricing (vertical lower axis), and management control (horizontal right axis). The shape of the diagram for each organization represents to what degree the cost system is used for that dimension. WVA = Watervliet Arsenal: All four dimensions of cost accounting use are fully developed. Facilitator's Note: Advance slide (Facilitate discussion using the slide) BLM = Bureau of land management. Uses cost system mostly for overhead allocation (left axis) and managerial control (right axis). PBS = Public Building Service: uses cost system primarily for pricing (vertical lower axis) and managerial control (horizontal right axis). FGIS = Federal grain inspection service: Pricing (vertical lower axis), Overhead allocation (horizontal left), managerial control (horizontal right) VMSS = Veterinary Medical Supply Service: control, pricing and allocation Of interest: One organization that only uses its system for required costing (essentially external reporting) Of interest: One organization that does not use its system at all!

LSA #2 Check on Learning Q1. What are the basic uses for Cost Accounting systems? A1. Required reporting (external), management control, overhead allocation, setting prices Q2. Should all cost systems be the same? A2. NO Show Slide #19: LSA #2 Check on Learning Facilitator’s Note: Ask check on learning question, facilitate discussion on answer given. Q. What are the basic uses for Cost Accounting systems? A. Required reporting (external), management control, overhead allocation, setting prices. Q. Should all cost systems be the same? A. No Q. Why or why not? A. Because organizations differ greatly, and the needs of management in those organizations also differs. Q3. Why or why not? A3. Because organizations differ greatly, and the needs of management in those organizations also differs.

LSA #2 Summary During this block, we discussed how to look at “2 sides of the coin”, and how it represents different ways of looking at the dollar. In addition, examples of Cost Management uses at 59 Federal locations as it pertains to; required costing – Management Control – OH Allocation and Pricing. Show Slide #20: LSA #2 Summary Facilitator’s Note: During this block, we discussed how to look at “2 sides of the coin”, and how it represents different ways of looking at the dollar. In addition, examples of Cost Management uses at 59 Federal locations as it pertains to; required costing – Management Control – OH Allocation and Pricing.

What about GFEBS? General Fund Enterprise Business System Used Army-wide Permits real-time posting of financial transactions Reports costs according to Budget-relevant and non-Budget-relevant Cost Objects Are GFEBS reports internal or external? Show Slide #21: What about GFEBS? 3. Learning Step Activity Step 3. Classify GFEBS reports as internal or external cost reports Method of Instruction: DSL (large or small group discussion) Facilitator to Learner Ratio: 2:25 Time of Instruction: 20 minutes Media: Power Point, Printed Reference Material Facilitator's Note: Ask the Learners: What about GFEBS? GFEBS is the Army’s General Fund Enterprise Business System It is used Army-wide, and Permits real-time posting of financial transactions. Reports costs according to Budget-relevant and non-Budget-relevant Cost Objects Are GFEBS reports internal or external? (Facilitate discussion)

Unit Cost Report Show Slide #22: Unit Cost Report Facilitator's Note: (Facilitate discussion using the slide) this report is generated in the Business Intelligence (BI) Warehouse in GFEBS. A unit cost report displays the cost of an individual item or cost per unit of output. This report calculates the average cost of a good or service over a specified period of time. Use this report to view and analyze the cost per unit of output of a designated cost object:

Unit Cost Report This report shows the actual and planned quantities and actual and planned (average) unit cost for various SKFs (Statistical Key Figures) such as Headcount. Show Slide #23: Unit Cost Report (Cont.). Facilitator's Note: (Facilitate discussion using the slide) the bottom section of this report gives the actual and planned quantities and actual and planned (average) unit cost for various SKFs (Statistical Key Figures) such as Headcount.

Discussion Questions Who would use this report? How might they use it? If you were the Senior Leader of this organization, would you be surprised that your cost per headcount was $78,919.20? What would you want to know about that number? Would this be an internal or external report for you? Show Slide #24: Discussion Questions Facilitator's Note: Ask these critical questions (Facilitate discussion on answers given) Who would use this report? This report seems to be targeted toward the cost center managers in charge of the units of output (SKFs). It would also be useful for higher level leaders who might want to compare unit costs across the entire Army.   How might they use it? The immediate cost center managers would use this to understand the full cost of their units of output. They can use one year’s unit cost as a basis of comparison to another year’s unit cost. If you were the Senior Leader of this organization, would you be surprised that your cost per headcount was $78,919.20? The Senior Leader may or may not be surprised by this unit cost or any of the unit costs presented in the report. What is important to note is that this is an AVERAGE cost. That means that some individuals in the organization cost more than $78,919.20 and some cost less. There is probably not any one single individual that costs exactly $78,919.20. That is the nature of averaging. We will cover this in more detail later in the course. What would you want to know about that number? (Learner responses may vary.) I would want to know what elements of cost are included in the total. While the Army is interested in reporting full cost, those costs might not always be relevant to the decision at hand. For example, if that cost per person includes depreciation or other fixed costs, my costs will not decrease by $78,919.20 if my headcount decreases by one. Do these unit costs reflect budgetary expenditures, cash payments or consumption of resources? Would this be an internal or external report for you? If the cost inputs to these numbers are specified by someone above my pay grade, then this report is really an external report. For this to be an internal report, I would need to define which elements of cost are relevant to my decision and calculate unit cost using my own specifications.

LSA #3 Check on Learning Q1. What characteristics might identify a report as internal to an organization? A1. Elements of information that are RELEVANT to managers’ decision making would be internal to an organization. Relevant elements of information would be defined by the manager. That means that the manager or user specifies how the information should be measured and the format in which it would be reported. Q2. What characteristics might identify a report as external to an organization? Show Slide #25: LSA #3 Check on Learning Facilitator’s Note: Ask check on learning question, facilitate discussion on answer given. Q1. What characteristics might identify a report as internal to an organization? A1. Elements of information that are RELEVANT to managers’ decision making would be internal to an organization. Relevant elements of information would be defined by the manager. That means that the manager or user specifies how the information should be measured and the format in which it would be reported. Q2. What characteristics might identify a report as external to an organization? A2. Elements of information that are designed for CONSISTENCY and COMPARABILITY for external users would be external. If the elements of information in the report and the format of the report are specified by an external or higher entity that is a good sign that the report is an EXTERNAL report. A2. Elements of information that are designed for CONSISTENCY and COMPARABILITY for external users would be external. If the elements of information in the report and the format of the report are specified by an external or higher entity that is a good sign that the report is an EXTERNAL report.

LSA #3 Summary As illustrated by the great variety in the graphs on the previous slides, needs for internal cost information are as varied as the organizations themselves. External cost reports facilitate comparison of organizations by external users – that is their goal. However, external cost reports are unlikely to meet internal management information needs. Show Slide #26: LSA #3 Summary Facilitator's Note: As illustrated by the great variety in the graphs on the previous slides, needs for internal cost information are as varied as the organizations themselves External cost reports facilitate comparison of organizations by external users – that is their goal. However, external cost reports are unlikely to meet internal management information needs.

TLO Summary Action: Determine the difference between Internal and External Cost Reporting Condition: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international students) you must: Define the 4 characteristics of accounting information for cost reporting Determine the difference between internal and external cost reporting Classify GFEBS reports as internal or external cost reports Show Slide #27: TLO Summary Facilitator’s Note: Restate the TLO Action: Determine the difference between Internal and External Cost Reporting Condition: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international students) you must: Define the 4 characteristics of accounting information for cost reporting Determine the difference between internal and external cost reporting Classify GFEBS reports as internal or external cost reports “Or” Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

Principles of Cost Analysis and Management 1 Exam at the end of Week One Show Slide #28: Principles of Cost Analysis and Management Test 1 Method of Instruction: Facilitator to Learner Ratio: 2:25 Time of Instruction: 3 hours with an AAR Facilitator’s Note: Principles of Cost Analysis and Management 1 Exam at the end of Week One. Students must score 80% or higher and International officers must score 70% or higher. Facilitator’s Note: Facilitator will conduct a 30 minute AAR after exam OBJECTIVE: This test is designed to measure your understanding of basic accounting, military accounting, and financial accounting concepts and principles. MATERIALS REQUIRED: 1. Pencil - Scratch Paper 2. Calculator (student provided) 3. Student Notes 4. Excel Spreadsheets provided in test on URL Ensure that your computer has test made available to you, if used password is given for input, and your cache has been cleared prior to beginning test. 2. ALL WORK ON THIS EXAMINATION MUST BE YOUR OWN. You MAY NOT communicate with any other student, give or receive assistance, make a record of your answers anywhere, and/or pass on information about this examination to other students. Failure to follow these instructions will result in appropriate disciplinary and/or administrative action(s). 3. This test consists of 20 questions. Questions 1 through 11 consist of various multiple-choice, fill in the Blank, and true or false questions. Questions 12 through 20 are Performance based questions. Make sure to save after every question to ensure all questions are submitted. 4. Read each question carefully. You have 2 hours and 30 minutes to complete this test. 5. Questions concerning the administration of this test may be directed to the test proctor. The test proctor will not answer questions concerning the content of the test. 6. Upon completion of this test, turn in your scratch paper (if any) to the test proctor. Please leave the room until the posted return time.