IOFM: Accounts Payable Manager Certificate - APM.2 E-
Textbook SG UPDATED ACTUAL Questions and
CORRECT Answers
1.1 Leader less passive work / more active effort
1.1 Manager delegation of tasks / accountability / focus on meetings outside of team and
engagement with higher management
1.2 Span of Control number of direct reports (people reporting to manager)
1.2 Decentralized AP AP structure consisting of multiple geographical locations
1.2 Decentralized AP PRO *Payment Flexibility
Redundancy of ops in event of disaster via other AP loc. can fill in Strong local
vendor relationship
*Easier cost allocation
*Performance accountability by site
*Greater op for staff promotion and transfer to other departments
1.2 Decentralized AP CON Segregation of duties difficult due to lower staff levels Redundant ops expenses
*Multiple accounting systems w/out system communication functionality
Challenges in building AP teamwork across locations Difficulty in combined AP
spend analysis across all loc.
, 1.2 Centralized AP All AP functional responsibilities reside with a single department in a single loc.
1.2 Centralized AP PRO *Greater ability to segregate duties
*Op to increase efficiency and reduce costs through elimination of redundant op
and systems
Greater control over invoice and payment processing Greater consistency of
training
*Face-to-Face interaction among all AP employees; improved team building
*Consistent payment performance for all invoices
1.2 Centralized AP CON *Potentially longer lead times for vendor setup / payment processing
*Possibly complex budgetary cost allocations required for the different business
units receiving AP services
*Complexities associated with paying from multiple bank accounts
*Lack of workforce redundancy in event of a disaster
*Parallel workflows required if the various business units have different tax IDs
1.2 Shared Service Centers (SSCs) Combined departments that relate to one another (AP/ T&E/ Payroll/ Procurement/
AR/ Fixed Assets/ Technology/ HR)
1.2 Share Service Centers (SSCs) PRO *Greater efficiency
*Less cost than for separate departments
*Better customer service for both internal and external customers
*Consistency of policies and procedures
*Increased visibility into operations
*Reduced cycle time
*More accurate accruals
*Timelier reporting of information
*Better segregation of duties
*Professional management
*Enhanced and consistent quality standards
*Commitment to best practices
Less departmental siloing and better lines of communication Independence to
manage the SSC functions without undue influence by other groups and executives
*Potential to hire new staff that are not "set in ways"
*Career op for staff that are unavailable in standalone departments
1.2 Share Service Centers (SSCs) CON lack of flexibility that may be necessary in specific situations Inefficiencies from
lack of infrastructure
*Difficulty of change in management
Proliferation of workarounds undermining SSC benefits Excessive focus on cost-
cutting
Possibility of new staff and team required employment Difficulty to team build in
large SSCs
1.2 Outsourcing Process of employing external services for regularly internally handled tasks. Can
be seen geographically three ways *Offshoring (another continent)
*Onshoring (within own borders)
*Nearshoring (neighboring countries)
Textbook SG UPDATED ACTUAL Questions and
CORRECT Answers
1.1 Leader less passive work / more active effort
1.1 Manager delegation of tasks / accountability / focus on meetings outside of team and
engagement with higher management
1.2 Span of Control number of direct reports (people reporting to manager)
1.2 Decentralized AP AP structure consisting of multiple geographical locations
1.2 Decentralized AP PRO *Payment Flexibility
Redundancy of ops in event of disaster via other AP loc. can fill in Strong local
vendor relationship
*Easier cost allocation
*Performance accountability by site
*Greater op for staff promotion and transfer to other departments
1.2 Decentralized AP CON Segregation of duties difficult due to lower staff levels Redundant ops expenses
*Multiple accounting systems w/out system communication functionality
Challenges in building AP teamwork across locations Difficulty in combined AP
spend analysis across all loc.
, 1.2 Centralized AP All AP functional responsibilities reside with a single department in a single loc.
1.2 Centralized AP PRO *Greater ability to segregate duties
*Op to increase efficiency and reduce costs through elimination of redundant op
and systems
Greater control over invoice and payment processing Greater consistency of
training
*Face-to-Face interaction among all AP employees; improved team building
*Consistent payment performance for all invoices
1.2 Centralized AP CON *Potentially longer lead times for vendor setup / payment processing
*Possibly complex budgetary cost allocations required for the different business
units receiving AP services
*Complexities associated with paying from multiple bank accounts
*Lack of workforce redundancy in event of a disaster
*Parallel workflows required if the various business units have different tax IDs
1.2 Shared Service Centers (SSCs) Combined departments that relate to one another (AP/ T&E/ Payroll/ Procurement/
AR/ Fixed Assets/ Technology/ HR)
1.2 Share Service Centers (SSCs) PRO *Greater efficiency
*Less cost than for separate departments
*Better customer service for both internal and external customers
*Consistency of policies and procedures
*Increased visibility into operations
*Reduced cycle time
*More accurate accruals
*Timelier reporting of information
*Better segregation of duties
*Professional management
*Enhanced and consistent quality standards
*Commitment to best practices
Less departmental siloing and better lines of communication Independence to
manage the SSC functions without undue influence by other groups and executives
*Potential to hire new staff that are not "set in ways"
*Career op for staff that are unavailable in standalone departments
1.2 Share Service Centers (SSCs) CON lack of flexibility that may be necessary in specific situations Inefficiencies from
lack of infrastructure
*Difficulty of change in management
Proliferation of workarounds undermining SSC benefits Excessive focus on cost-
cutting
Possibility of new staff and team required employment Difficulty to team build in
large SSCs
1.2 Outsourcing Process of employing external services for regularly internally handled tasks. Can
be seen geographically three ways *Offshoring (another continent)
*Onshoring (within own borders)
*Nearshoring (neighboring countries)
