Essentials of Business Processes and Information Systems Magal, Word Test Bank

Essentials of Business Processes and Information Systems BY Magal, Word

Email: richard@qwconsultancy.com

1. Which of the following are considered knowledge workers? *a. product manager *b. sales executive *c. production manager d. accounting clerk e. insurance claims processor 2. Which of the following are key skills necessary for a knowledge worker? *a. strategic thinking *b. communication and collaboration *c. information literacy d. computer programming e. software development 3. Which of the following are typical functional areas in a business? *a. Purchasing *b. Marketing and Sales *c. Finance and Accounting d. Purchase Requisition e. Purchase Order 4. Which of the following are negative consequences of paper-based processes? *a. delays *b. excess inventory *c. lack of visibility d. increased dependence on technology e. globalization 5. Which of the following are true about the manner in which an enterprise system supports a process? *a. An ES helps execute process steps. *b. An ES captures and stores process data *c. An ES helps monitor process performance by providing information. d. An ES creates the critical paperwork that is sent to the next step in the process. e. An ES stores data in various departmental databases for easy access to needed data.

6. Which of the following are sources of delays in the execution of manual, paper-based processes? a. high visibility across the process resulting in immediate access needed to complete a task *b. creating and maintaining needed paperwork *c. transmitting paperwork to other departments d. a large common database that slows down information retrieval e. information overload due to increased volume of email

7. Which of the following are characteristics of knowledge work? *a. Knowledge work is typically unstructured. b. Knowledge work is typically structured. *c. Knowledge work relies on information. d. Knowledge work is repetitive. e. Knowledge work is well defined.

8. Which of the following are knowledge workers? *a. product managers *b. sales executive *c. production manager d. accounting clerk e. insurance claims processor 9. Which of the following are typical business processes? a. accounting *b. procurement *c. fulfillment d. marketing e. research and development 10. In a manual, paper-based process, delays are caused due to which of the following? a. increased inventories b. increased cycle times *c. creating paperwork d. reduced cycle times *e. sending paperwork

1. A sequence of tasks or activities that takes a set of inputs and converts them into desired outputs is called: a. globalization b. Income statement *c. a business process d. an ERP system 2. ___________ indicates the financial condition of a company at a specific point in time. a. Income Statement *b. Balance Sheet c. Chart of Accounts d. Statement of Income 3. ___________ indicate(s) the financial condition of a company over a specific period of time. *a. Income Statement b. Balance Statement c. Chart of Accounts d. Statement of Income 4. __________ can also be referred to as a profit and loss (P&L) statement. *a. Income Statement b. Balance Statement c. Chart of Accounts d. Statement of Income 5. Which of the following processes is triggered when someone in the company determines that a specific quantity of a certain material is needed? *a. Procurement Process b. CRM Process c. Fulfillment Process d. Hiring Process 6. Which of the following processes involves making products in-house? a. Procurement Process *b. Production Process c. Fulfillment Process d. Hiring Process 7. According to “Essentials of Business” by Magal, why did Apple Inc. decide to have its products made by an outside contract manufacturer? *a. So it could stick to its core competency of designing easy-to-use and engaging hardware and software products. b. Because the contract manufacturer used cheaper labor which allowed Apple to cut costs and increase profits.

c. Because the theories of globalization suggested it was a good strategy. d. To provide a higher quality product.

8. Why do we study the global competitive environment? *a. Because doing business globally can provide access to cheaper resources which reduce costs and increase the number of potential customers which increases sales. b. Because outsourcing is making manufacturing in the U.S. a thing of the past. c. Because, as a knowledge worker, I'll probably be required to work overseas someday. d. Because MIS is difficult to understand without it.

9. Which activity would likely be performed by a knowledge worker? a. Creating a Purchase Requisition when inventory falls below a reorder point. b. Converting a Requisition into a PO and sending it to a vendor. c. Receiving a shipment from a vendor. *d. Deciding whether to outsource manufacturing.

10. Which is not a skill of a knowledge worker? *a. Business competency b. Strategic thinking c. Information literacy d. Communication and collaboration 11. If the silo effect is a consequence, why do companies organize by business function? *a. Because specialization allows companies to be more efficient. b. Because one person completing all tasks of a process is more efficient. c. Because functional organizations can more easily downsize, minimizing labor costs. d. Because it's always been done that way.

12. Select the most accurate statement. a. Lead time is the amount of time between placing a PO and receiving goods. b. Cycle time is similar but measures the time to complete the fulfillment process. *c. Both the above are true. d. Neither of the above are true.

13. From the sidebar cases in Essentials of “Business” by Magal, which company produces make-to-order goods, meaning they assemble products only after receiving a customer order? *a. Dell b. Apple c. Nike d. Cisco 14. All of the following are disadvantages of a paper-based process except? *a. the silo effect

b. delays c. excess inventory d. lack of visibility

1. One consequence of globalization is increased competition.

True 2. Due to globalization, organizations often locate parts of their operations in different countries.

True 3. Due to globalization, organizations tend to locate their operations in one country.

False 4. The information revolution refers to the increased use of communication and computer technologies to create, deliver, and use information.

True 5. The information revolution has a very limited role in globalization.

False 6. Information and communication technologies help organization coordinate their global operations.

True 7. People in organizations are becoming more dependent on information.

True 8. Knowledge workers are those who work in information systems departments of global companies.

False 9. Knowledge workers exist in all parts of an organization.

True 10. Structured information is well defined and its source is known.

True 11. Unstructured information is well defined and its source is known.

False 12. Task workers perform routine, well defined work.

True 13. Functional Information Systems only support the activities of specific areas of the business.

True 14. In a manual (paper-based) process, information is communicated between functional areas using an enterprise system.

False 15. The silo effect refers to the integrated and the cross-functional nature of business processes.

False 16. The silo effect refers to be losing sight of the big picture of the process and being narrowly focused on a task.

True

1. Which of the following are components of an ES? *a. hardware *b. software *c. database d. people e. network 2. Which of the following are stages in the evolution of enterprise systems? *a. stand-alone mainframe systems b. packaged applications *c. client-server architecture *d. service oriented architecture e. SAP 3. Which of the following are types of data in an ES? *a. organizational data *b. master data *c. transaction data d. income statement e. balance sheet 4. Enterprise system application suites include which of the following systems? *a. Enterprise Resource Planning (ERP) systems *b. Supply Chain Management (SCM) systems *c. Suppler Relationship Management (SRM) systems *d. Customer Relationship Management (CRM) systems *e. Product Lifecycle Management (PLM) systems 5. Which of the following is part of the 3-tier architecture? *a. presentation layer *b. application layer *c. data layer d. hardware layer

1. Which of the following is NOT part of the 3-tier architecture? a. presentation layer b. application layer c. data layer *d. hardware layer 2. Which of the following is an example of organizational data? Data about: a. Customers b. Vendors *c. Sales Organizations d. Material 3. Which of the following is an example of master data? Data about: *a. Customers b. Purchase Orders c. Sales Organizations d. Company Codes 4. Which of the following is the latest stage in the evolution of enterprise systems? *a. service oriented architecture (SOA) b. client-server architecture c. process oriented architecture d. presentation layer 5. Which of the following was the earliest stage in the evolution of enterprise systems? a. service oriented architecture (SOA) b. client-server architecture c. process oriented architecture *d. stand-alone mainframe architecture 6. Which of the following materials does Super Skateboard Builders (SSB), Inc. NOT make? a. Entry-Level Skateboard *b. Hooded Sweatshirt c. T-Shirt d. First Aid Kit

1. In the client server architecture the data, applications and presentation are all included in one system.

False 2. CRM systems are intra-organizational systems.

False 3. SRM systems are intra-organizational systems.

False 4. CRM systems link a company with its suppliers.

False 5. CRM systems link a company with its customers.

True 6. PLM systems are concerned with purchasing materials from suppliers.

False 7. PLM systems are concerned with managing a product’s life cycle.

True 8. Customer data is an example of master data in an ES. True 9. Customer data is an example of transaction data in an ES. False 10. Vendor data is an example of organizational data in an ES. False 11. Vendor data is an example master data in an ES. True 12. Dates, times, and locations are examples of organizational data in an ES. False 13. Dates, times, and locations are examples of transaction data in an ES. True

1. Which of the following are key data in a purchase requisition when the requisition is first created? *a. Quantity of material requested *b. Requested Delivery Date c. Prices of the material ordered d. Date the order was shipped e. Purchase order number 2. Which of the following are key data in a purchase order when the order is first created? *a. Quantity of material ordered *b. Requested Delivery Date *c. Prices of the material ordered d. Date the order was shipped *e. Purchase order number 3. Which of the following are key data in a packing list? a. Requested Delivery Date *b. Order and ship quantity c. Prices of the material ordered *d. Date the order was shipped *e. Unit weight 4. Which of the following are key data in a goods receipt? a. Requested Delivery Date *b. Order and received quantity c. Prices of the material ordered *d. Receipt Date e. Unit weight 5. Which of the following are key data in an invoice? a. Requested Delivery Date b. Order and received quantity *c. Prices of the material ordered *d. Invoice Date *e. FOB 6. A three-way match involves which of the following documents? *a. Purchase Order *b. Goods Receipt Document *c. Invoice d. Purchase Requisition e. Packing List

7. Which of the following are examples of process-level information relevant to the procurement process? *a. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *b. Which materials are purchased most frequently? c. Which materials are produced most often? d. Which customer buys most frequently? *e. What is the average time between sending a purchase order and receiving the shipment?

8. Which of the following are examples of process-level information relevant to the procurement process? a. Which customers are prompt and which ones are habitually late in sending the payment? *b. Which materials are purchased most frequently? c. Which materials are produced most often? *d. Which vendor does SSB buy from the most frequently? *e. What is the average time between sending a purchase order and receiving the shipment?

9. Which of the following are examples of process-level information relevant to the procurement process? *a. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? b. Which materials are sold most frequently? c. Which materials are produced most often? *d. Which vendor does SSB buy from the most frequently? e. What is the average time between creating a sales order and sending the shipment?

10. Which of the following are examples of instance-level information relevant to the procurement process? a. When did the customer receive the goods? *b. Was the invoice paid? If so, when? c. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *d. What was the total of the invoice? *e. How long did it take to receive the shipment after creating a purchase order?

11. Which of the following are examples of instance-level information relevant to the procurement process? *a. When did we receive the goods? b. Was the invoice sent? If so, when? c. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *d. What was the total of the invoice? e. How long did it take to send the shipment after creating a sales order?

12. Which of the following are examples of instance-level information relevant to the procurement process? *a. When did we receive the goods? *b. Was the invoice received? If so, when? c. When did the warehouse ship the order out? *d. What was the total of the payment? e. How long did it take to send the shipment after creating a sales order?

13. Which of the following steps in the procurement process have a financial impact on the company that is buying materials? a. Create purchase requisition *b. Receive shipment from vendor c. Receive invoice form vendor d. Create and send purchase order *e. Send payment to vendor 14. Which of the following steps in the procurement process do not have a financial impact on the company that is buying materials? *a. Create purchase requisition b. Receive shipment from vendor *c. Receive invoice form vendor *d. Create and send purchase order e. Send payment to vendor 15. In which of the following documents is the price of the materials relevant? *a. Invoice b. Purchase Requisition c. Good Receipt Document d. Packing List *e. Purchase Order 16. In which of the following documents is the price of the materials not relevant? a. Invoice *b. Purchase Requisition *c. Good Receipt Document *d. Packing List e. Purchase Order

1. In the procurement process, which department creates the Purchase Order? a. Sales *b. Purchasing c. Warehouse d. Accounting 2. In the procurement process, which department receives the Purchase Requisition? a. Sales *b. Purchasing c. Warehouse d. Accounting 3. In the procurement process, which department creates the Purchase Requisition? a. Sales b. Purchasing *c. Warehouse d. Accounting 4. In the procurement process, which department creates the Packing List and Goods Receipt Document? a. Sales b. Purchasing *c. Warehouse d. Accounting 5. In the procurement process, which department receives the invoice and sends the payment? a. Sales b. Purchasing c. Warehouse *d. Accounting 6. Which of the following is the correct sequence of steps in the Procurement Process? *a. Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send Payment b. Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send Payment c. Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send Payment d. Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive Shipment, Receive Invoice 7. Which of the following documents informs about the contents in a shipment? a. Invoice b. Purchase Order c. Goods Receipt Document

*d. Packing List 8. Which of the following payment terms means that payment is due in 30 days, but the payer will get a 3% discount if payment is made within 10 days? a. 10%30/Net 10 *b. 3%10/Net 30 c. Net 10/30 d. 10%3/Net 30 9. A packing list does not include which of the following data? *a. price/cost b. weight c. quantity d. ship date 10. How does the recipient of a shipment know which order the shipment is for? *a. by referencing the order number included in the accompanying packing list b. by referencing the order number included in the accompanying purchase order c. by matching the material in the shipment with one of the unfilled purchase orders d. by performing a three-way match of key documents 11. Under which of the following payment terms is payment due in 30 days, but the payer will get a 1% discount if payment is made within 7 days? a. 7%30/Net 10 *b. 1%7/Net 30 c. Net 7/30 d. 7%1/Net 30 12. A purchase requisition does not include which of the following data? *a. price/cost b. F.O.B. Point c. quantity d. requested delivery date 13. A purchase order does not include which of the following data? a. price/cost b. F.O.B. Point c. quantity *d. requisition number 14. A goods receipt does not include which of the following data? *a. price/cost b. quantity received c. quantity ordered d. backorder quantity

15. An invoice does not include which of the following data? a. price/cost b. F.O.B. Point c. quantity *d. requested delivery date 16. Which of the following documents identifies the material needed, the quantity needed, and the date it is needed? a. Invoice b. Goods Receipt Document c. Packing List *d. Purchase Requisition 17. Which of the following documents is an agreement to purchase? a. Invoice *b. Purchase Order c. Goods Receipt Document d. Purchase Requisition 18. Which of the following documents verifies that the specified goods have been received? a. Invoice b. Purchase Order *c. Goods Receipt Document d. Packing List 19. Which of the following documents is sent to accounting for payment? *a. Invoice b. Purchase Order c. Packing List d. Purchase Requisition 20. What is the only document where the quantity of the materials is not relevant? a. Purchase Order b. Goods Receipt Document *c. Payment d. Purchase Requisition 21. What document is the only document created by the purchasing department? a. Invoice *b. Purchase Order c. Goods Receipt Document d. Purchase Requisition 22. Payment terms are declared on what document? a. Invoice

*b. Purchase Order c. Goods Receipt Document d. Purchase Requisition

1. The packing list is part of the invoice receipt step in the Purchasing Process.

False 2. The packing list is part of the receive goods step in the Purchasing Process.

True 3. A three-way match is necessary before payment is made.

True 4. A packing list is associated with the warehouse in the procurement process.

True 5. A packing list is associated with accounting in the procurement process.

False 6. An invoice is associated with accounting in the procurement process.

True 7. An invoice is associated with purchasing in the procurement process.

False 8. A purchase order is associated with purchasing in the procurement process.

True 9. A purchase order is associated with sales in the procurement process.

False 10. A purchase requisition is associated with purchasing in the procurement process.

False 11. A purchase requisition is associated with the warehouse in the procurement process.

True 12. A purchase requisition is a commitment to purchase the specified quantity of the specified material.

False 13. A purchase order is a commitment to purchase the specified quantity of the specified material.

True 14. A purchase requisition is a document that identifies the material needed, the quantity needed, and the date it is needed.

True

15. A purchase order is a document that identifies the material needed, the quantity needed, and the date it is needed.

False 16. A goods receipt is a document that verifies that the specified goods have been received.

True 17. An invoice is a document that verifies that the specified goods have been received.

False 18. A packing list is a document that provides details about the materials contained in the shipment.

True 19. A purchase order is a document that provides details about the materials contained in the shipment.

False 20. One purchase requisition can be converted to more than one purchase order.

True 21. One purchase requisition can be converted to only one purchase order.

False 22. Under the term “FOB shipping point,” the buyer “owns” the material once it is shipped.

True 23. Under the term “FOB shipping point,” the seller “owns” the material once it is shipped.

False

1. Which of the following are variations of the basic fulfillment process? *a. quote to cash b. procure to pay c. requisition to pay *d. inquiry to cash e. plan to produce 2. Which of the following are documents associated with the fulfillment process? *a. picking list *b. packing list c. bill of materials d. customer master *e. customer invoice 3. Which of the following steps in the fulfillment process have an impact on the financials of the company receiving the order from the customer? a. receive customer inquiry b. send quotation c. receive customer purchase order *d. send shipment *e. receive customer payment 4. Which of the following steps in the fulfillment process do not have an impact on the financials of the company receiving the order from the customer? *a. receive customer inquiry *b. send quotation *c. receive customer purchase order d. send shipment e. receive customer payment 5. Which of the following accounts are affected by a shipment of goods to a customer? a. accounts payable *b. accounts receivable *c. cost of goods sold *d. finished goods inventory e. bank account 6. Which of the following are examples of process-level information relevant to the fulfillment process? *a. Which customers are prompt and which ones are habitually late in sending the payment? *b. Which materials are sold most frequently? c. Which materials are produced most often? d. Which vendor do we buy from most frequently? *e. What is the average time between creating a sales order and sending the shipment?

7. Which of the following are examples of process-level information relevant to the fulfillment process? a. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *b. Which materials are sold most frequently? c. Which materials are produced most often? *d. Which customer does SSB sell to most frequently? *e. What is the average time between creating a sales order and sending the shipment?

8. Which of the following are examples of process-level information relevant to the fulfillment process? *a. Which customers are prompt and which ones are habitually late in sending the payment? b. Which materials are procured most frequently? c. Which materials are produced most often? *d. Which customer does SSB sell to the most frequently? e. What is the average time between creating a purchase order and receiving the shipment?

9. Which of the following are examples of instance-level information relevant to the fulfillment process? a. When did the vendor send the goods? *b. Was the invoice paid? If so, when? c. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *d. What was the total of the sales order? *e. How long did it take to send the shipment after creating a sales order?

10. Which of the following are examples of instance-level information relevant to the fulfillment process? *a. When did we send the goods? b. Was the invoice received? If so, when? c. Which suppliers are prompt and which ones are habitually late in delivering the materials ordered? *d. What was the total of the invoice? e. What is the average time between creating a purchase order and receiving the shipment?

11. Which of the following are examples of instance-level information relevant to the fulfillment process? *a. When did we send the goods? *b. Was the invoice sent? If so, when? c. When did the warehouse receive the order? *d. What was the total of the payment? e. How long did it take to receive the shipment after creating a purchase order?

12. Typically, which of the following information would you find in a sales order? *a. Bill to address *b. Ship to address c. Quantity shipped *d. Requested delivery date e. Storage Location 13. Typically, which of the following information would you find in a purchase order? *a. Bill to address *b. Ship to address c. Quantity shipped *d. Requested delivery date e. Storage Location 14. Typically, which of the following information would you find in a quotation? a. Bill to address b. Ship to address *c. Quantity d. Requested delivery date *e. Price 15. Typically, which of the following information would you find in a picking document? *a. Bill to address *b. Ship to address *c. Quantity *d. Requested delivery date e. Price 16. Typically, which of the following information would you find in a packing list? *a. Bill to address *b. Ship to address *c. Quantity d. Requested delivery date e. Price 17. Typically, which of the following information would you find in an invoice? *a. Bill to address *b. Ship to address *c. Quantity d. Requested delivery date *e. Price

1. Which of the following is the correct order of the Fulfillment Process? *a. Receive Customer Inquiry, Receive Customer Purchase Order, Create Sales Order, Prepare and Send Shipment, Create and Send Invoice, Receive Payment b. Receive Customer Purchase Order, Receive Customer Inquiry, Create Sales Order, Prepare and Send Shipment, Create and Send Invoice, Receive Payment. c. Receive Customer Inquiry, Receive Customer Purchase Order, Create Sales Order, Create and Send Invoice, Prepare and Send Shipment, Receive Payment. d. Create Sales Order, Receive Customer Inquiry, Receive Customer Purchase Order, Prepare and Send Shipment, Create and Send Invoice, Receive Payment.

2. In the fulfillment process, which department prepares and sends the shipment? a. Sales b. Purchasing c. Accounting *d. Warehouse 3. In the fulfillment process, which department prepares and sends the quotation? *a. Sales b. Purchasing c. Accounting d. Production 4. In the fulfillment process, which department prepares and sends the invoice? a. Sales *b. Accounting c. Warehouse d. Production 5. In the fulfillment process, which department receives payment? a. Sales b. Purchasing *c. Accounting d. Warehouse 6. Which of the following data is NOT typically found in a customer purchase order? a. material number b. quantity *c. storage location d. price 7. Which of the following data is NOT typically found in a sales order? a. requested delivery date *b. actual delivery date c. material number d. shipment terms

8. Which of the following data is NOT typically found in a quotation? *a. requested delivery date b. quantity c. price d. terms of delivery 9. Which of the following data is NOT typically found in a picking document? a. quantity b. material number *c. price d. F.O.B. Point 10. Which of the following data is NOT typically found in a packing list? a. Ship to: b. quantity c. Bill to: *d. invoice date 11. Which of the following data is NOT typically found in an invoice? a. Ship to: b. quantity c. price *d. picked quantity 12. In a manual process, which of the following documents is used to track the progress of the fulfillment process? a. purchase order *b. sales order c. picking list d. invoice 13. In a manual process, which of the following documents is a commitment by the customer to purchase the materials? *a. purchase order b. sales order c. picking list d. packing list 14. In a manual process, which of the following documents is an itemized list of the materials sent or the services provided to the customer, with the cost of the items plus discounts, taxes, shipping, and other charges? a. purchase order b. sales order *c. invoice d. packing list

15. In a manual process, which of the following documents is created by the warehouse when they receive a sales order? a. purchase order b. sales order *c. picking list d. invoice 16. In a manual process, which of the following documents accompanies the shipment and specifies the items and quantities shipped? a. purchase order b. picking list c. invoice *d. packing list 17. A company does not have sufficient inventory of materials ordered by a customer.

So, it ships what it has now and will ship the remaining at a later date when more materials are available. Which of the following best describes the above scenario? a. balked shipment b. rejected shipment c. picking *d. backorder 18. When using an ES, the person responsible for preparing shipments can retrieve a list of orders that need to be shipped. Such a list is called: a. billing due list *b. delivery due list c. order due list d. customer order list 19. When using an ES, the person responsible for preparing invoices can retrieve a list of orders that need to be billed. Such a list is called: *a. billing due list b. delivery due list c. order due list d. customer order list 20. Payment terms are declared by the seller at what step? a. Customer Inquiry *b. Quotation c. Purchase Order d. Sales Order 21. Payment terms are declared by the buyer at what step? a. Customer Inquiry b. Quotation *c. Purchase Order

d. Sales Order

1. The fulfillment process often begins when a customer sends an inquiry.

True 2. The fulfillment process often begins when a supplier sends an inquiry.

False 3. The fulfillment process often begins when a supplier sends a quotation.

False 4. The fulfillment process often begins when a customer sends a quotation.

False 5. The sales department creates the customer purchase order.

False 6. The sales department creates the sales order.

True 7. A picking document includes the storage location of the materials to be picked.

True 8. A packing list includes the storage location of the materials to be packed.

False 9. When using an ES, much of the data needed to create a customer invoice is automatically obtained from data previously stored in the system.

True 10. When using an ES, much of the data needed to create a customer invoice is manually entered.

False 11. When creating customer invoices, the person responsible can retrieve a list of orders that need to be acted on. This list is called a billing due list.

True 12. When creating customer invoices, the person responsible can retrieve a list of orders that need to be acted on. This list is called an order due list.

False 13. When using an ES, it is very difficult to obtain information about the status of a customer order.

True 14. Sell-from-stock involves fulfilling customer orders directly from the company’s inventory or finished goods.

True 15. Configure-to-order involves fulfilling customer orders directly from the company’s inventory or finished goods.

False 16. Configure-to-order involves taking a standard or base model of a product and then configuring it to meet the customer's special needs by adding either special options or add-on parts.

True 17. Sell-from-stock involves taking a standard or base model of a product and then configuring it to meet the customer's special needs by adding either special options or add-on parts.

False 18. The only time a financial impact is made on the income statement in the fulfillment process is when you send the shipment.

True 19. A financial impact is not made on the income statement in the fulfillment process when you send the shipment.

False 20. When you sent the shipment two transactions happen that affect the financial impact of the fulfillment process.

True 21. The accounts receivable account goes up when a shipment is sent.

True 22. The accounts receivable account goes up when an invoice is sent.

False 23. The cost of goods sold account goes up when a shipment is prepared.

False 24. The cost of goods sold account goes up when shipment is sent.

True

1. Which of the following are characteristics of discrete manufacturing? *a. items produced are distinct and countable b. the product cannot be easily disassembled c. a formulation process or a recipe is needed to produce the product *d. a bill of material is needed to produce the product *e. parts used are generally identifiable 2. Which of the following information is included in the definition of each operation in a product routing? *a. the work center where the operation is performed b. the person performing the operation *c. time needed to complete the operation *d. materials used in the operation 3. Which of the following documents are involved in the production process when using a make-to-stock strategy? a. customer purchase order *b. planned order *c. material withdrawal slip *d. production order e. delivery due list 4. Which of the following are examples of process level information from the production process? *a. What is the average time needed to produce a product? *b. What is the average time taken to complete each step in the routing? c. What are our company’s bestselling products? d. How much time did it take to complete production order #1? e. What is the status of production order #1?

5. Which of the following are examples of process level information from the production process? *a. What is the average wait until a product is put into production? *b. On average, what product produces the most scrap? c. What are our company’s bestselling products? d. What is the average time from sales order creation to shipment? e. What is the status of production order #1?

6. Which of the following are examples of instance level information from the production process? a. What is the average time needed to make a product? b. What is the average time taken to complete each step in the routing? c. What was the total cost of purchase order #1? *d. How much time did it take to complete production order #1? *e. What is the status of production order #1?

7. Which of the following are examples of instance level information from the production process? a. What is the average time needed to order a product? b. What is the average time taken to complete each step in the routing? *c. What was the total cost of production order #1? d. How much time did it take to complete purchase order #1? *e. What is the status of production order #1?

8. In the production process, which of the following screens in SAP are the primary sources of instance level information? *a. Stock Requirements List *b. Production Order Status c. Purchase Order History d. Sales Order e. Invoice 9. Typically, what of the following information would you find in a planned order? *a. Requested delivery date *b. Quantity requested *c. Material number d. Price/unit e. Quantity completed 10. Typically, what of the following information would you find in a production order? *a. Storage Location moved to *b. Quantity completed *c. Material number d. Price/unit e. Total price 11. Typically, what of the following information would you find in a material withdrawal slip? *a. Production quantity *b. Quantity issued *c. Material number d. Price/unit *e. Quantity needed 12. Typically, what of the following information would you find in a goods receipt document? *a. Received by *b. Delivered by *c. Material number d. Price/unit *e. Quantity

13. Which of the following documents are associated with the production process? a. purchase order *b. production order c. sales order *d. planned order e. goods movement order 14. Which of the following are production processes and strategies? *a. assembling b. procuring *c. discrete manufacturing d. process manufacturing e. outsourcing 15. In the production process, which of the following are master data? *a. bill of materials b. customers *c. routings *d. work centers e. suppliers 16. Which of the following is not a step in the production process? a. Request production b. Create product *c. Procure raw materials d. Receive finished goods *e. Sell finished goods 17. Which of the following is not a document in the production process? a. Production order b. Planned order *c. Purchase order d. Material withdrawal slip *e. Sales order

1. Which of the following identifies the parts needed to make one unit of a product? a. product routing *b. bill of material c. engineering drawing d. packing list 2. Which of the following defines the steps or operations necessary to create the product? *a. product routing b. bill of material c. engineering drawing d. packing list 3. Which of the following is the result of the product design process? a. product routing b. bill of material *c. engineering drawing d. packing list 4. When using an ES, which of the following is a key tool to review the current inventory and upcoming productions orders for a specific product? a. balance sheet *b. stock requirements list c. material withdrawal slip d. planned order status 5. ____________ includes a list of all the materials needed to produce the quantity of finished goods stated in the production order. a. balance sheet b. stock requirements list *c. material withdrawal slip d. planned order status 6. When using an ES, which of the following is a key tool to review the current status of a specific order? a. stock requirements list b. material withdrawal slip c. planned order status *d. production order status 7. _______ is used to request that the company produce a specified quantity of goods. a. Production Order *b. Planned Order c. Purchase Order d. Sales Order

8. _______ provides written authorization to the shop floor to produce the stated quantity of products. *a. Production Order b. Planned Order c. Purchase Order d. Sales Order 9. Which of the following is the sequence of activities in the Production Process? *a. Request Production, Authorize Production, Issue raw Materials, Create Product, Receive Finished Goods b. Request Production, Issue raw Materials, Authorize Production, Create Product, Receive Finished Goods c. Authorize Production, Issue raw Materials, Request Production, Create Product, Receive Finished Goods d. Request Production, Authorize Production, Create Product, Issue raw Materials, Receive Finished Goods 10. ___________ involves taking a number of component materials, such as a board, nuts and bolts, and putting them together to produce the desired finished product, such as a skateboard. *a. assembling b. manufacturing c. discrete manufacturing d. process manufacturing 11. ___________ is taking raw materials, such as plastic pellets, and creating something from them, such as a plate or a cup. a. Assembling *b. Manufacturing c. Discrete manufacturing d. Process manufacturing 12. Examples of ___________ are furniture and computers. a. assembling b. manufacturing *c. discrete manufacturing d. process manufacturing 13. Examples of ___________ are oil and gas. a. assembling b. manufacturing c. discrete manufacturing *d. process manufacturing

14. ____________ is a separate process in organizations that is concerned with creating new products based on such factors as market research and new production techniques. a. Production capacity b. Production controller c. Work centers *d. Product design 15. ____________ is the number of skateboards the shop floor can produce in a specified amount of time, such as per hour or per day. *a. Production capacity b. Production controller c. Work centers d. Product design

16. The ____________ is responsible for production in the organization. a. production capacity *b. production controller c. work center d. product design 17. The actual task of creating the product is accomplished in the __________. a. production capacity b. warehouse *c. work center d. product design 18. Which department creates a planned order? *a. Warehouse b. Production c. Sales d. Purchasing 19. Which department converts the planned order into a production order? a. Warehouse *b. Production c. Sales d. Purchasing 20. Which department issues raw materials? *a. Warehouse b. Production c. Sales d. Purchasing 21. Which department confirms production? a. Warehouse *b. Production c. Sales d. Purchasing 22. Which department creates the goods receipt? *a. Warehouse b. Production c. Sales d. Purchasing 23. Which of the following information is not necessary to process a production order? a. Scrap quantity b. Quantity completed

*c. Received by d. Authorized by 24. Which of the following information is not necessary to process a planned order? a. Requested delivery date b. Delivery location *c. production order number d. planned order number 25. Which of the following information is not necessary to process a material withdrawal slip? a. Material number(s) b. Received by *c. Authorized by d. Issued by

1. A bill of materials identifies the steps needed to produce a product.

False 2. Routings identify the steps needed to produce a product.

True 3. A bill of materials is the list of materials and quantities needed to produce a product.

True 4. Routings are the list of materials and quantities needed to produce a product.

True 5. The work of creating products is done in work centers.

True 6. The work of shipping products is done in work centers.

False 7. Under a make-to-stock strategy, the production process is triggered by a need to increase inventory.

True 8. Under a make-to-order strategy, the production process is triggered by a need to increase inventory.

False 9. Under a make-to-order strategy, the production process is triggered by a customer order.

True 10. Under a make-to-stock strategy, the production process is triggered by a customer order.

False 11. A material withdrawal slip is created in the warehouse when the planned order is converted into a production order.

False 12. A material issue slip is created in the warehouse when the planned order is converted into a production order.

False 13. A material issue slip is created in the warehouse after you convert the planned order into a production order.

True

14. A material receipt slip is created in the warehouse after you confirm production.

True 15. In the production process, a production order is used to track the progress of the order.

True 16. In the production process, a planned order is used to track the progress of the order.

False 17. In the production process, a planned order is used to request that the company produce a specified quantity of goods.

True 18. In the production process, a production order is used to request that the company produce a specified quantity of goods.

False 19. When using an ES, paper documents are a critical means of capturing and storing data generated during process steps.

False 20. When using an ES, paper documents are not a critical means of capturing and storing data generated during process steps.

True 21. The planned order is created by the warehouse.

True 22. The planned order is created by production.

False 23. The production order is created by production.

True 24. The production order is created by the warehouse.

False

1. Which of the assumptions of the fulfillment, procurement, and production processes are not valid in the integrated process? a. Sufficient production capacity is available. *b. Sufficient quantities of the finished products are available to meet a customer order. *c. Sufficient quantities of raw materials are available to make the needed products. *d. The procurement process is triggered by a need to increase inventory. e. The fulfillment process is triggered by a need to fill a specific customer order.

2. Which of the following are inter-company processes? a. ERP *b. SCM *c. SRM *d. CRM e. Fulfillment 3. Which of the following processes are included in the integrated process discussed in chapter 6? a. SCM *b. Procurement *c. Fulfillment d. SRM *e. Production 4. In the integrated process, after which of the following steps is there a decision point? a. Create purchase order *b. Create sales order *c. Authorize production *d. Receive shipment from vendor e. Create purchase requisition 5. In the integrated process, after which of the following steps is there a decision point? a. Create purchase order *b. Create sales order *c. Receive finished goods from production *d. Receive shipment from vendor e. Create purchase requisition 6. A stock requirements list can display which of the following information about a material? *a. stock on hand b. payments to vendors *c. purchase requisition d. customer invoice *e. customer orders

7. A stock requirements list can display which of the following information about a material? *a. planned orders b. invoices from vendors *c. production orders d. customer invoice *e. order reservations 8. Which of the following are intra-company processes? *a. Human capital management b. Supply chain management *c. Asset management d. Customer relationship management e. Supplier relationship management

1. Which of the following is the sequence of activities in the Asset Management Process? *a. Acquire Assets, Deploy Assets, Maintain Assets, Asset Accounting, Retire/Replace Assets b. Deploy Assets, Acquire Assets, Asset Accounting, Maintain Assets, Retire/Replace Assets c. Deploy Assets, Acquire Assets, Maintain Assets, Asset Accounting, Retire/Replace Assets d. Acquire Assets, Deploy Assets, Asset Accounting, Maintain Assets, Retire/Replace Assets 2. Which of the following is the sequence of activities in the Plan-to-Produce Process in SCM? *a. Supply Network Forecasting, Demand Planning, Production Capacity Planning, Material Logistics, Production & Material Scheduling b. Demand Planning, Supply Network Forecasting, Material Logistics, Production Capacity Planning, Production & Material Scheduling c. Demand Planning, Supply Network Forecasting, Production Capacity Planning, Material Logistics, Production & Material Scheduling d. Supply Network Forecasting, Demand Planning, Material Logistics, Production Capacity Planning, Production & Material Scheduling 3. Which of the following is the sequence of activities in the Source-to-Settle Process in SRM? *a. Supplier Identification & Selection, Requests for Quotation (RFQ), Manage Auctions & Bidding, Establish & Manage Contracts, Monitor Supplier Relationships b. Requests for Quotation (RFQ), Supplier Identification & Selection, Manage Auctions & Bidding, Establish & Manage Contracts, Monitor Supplier Relationships c. Requests for Quotation (RFQ), Supplier Identification & Selection, Establish & Manage Contracts, Manage Auctions & Bidding, Monitor Supplier Relationships d. Supplier Identification & Selection, Requests for Quotation (RFQ), Establish & Manage Contracts, Manage Auctions & Bidding, Monitor Supplier Relationships 4. Which of the following is the sequence of activities in the Idea-to-Market Process in PLM? *a. Idea Sourcing & Management, Project Management, Document Management, Quality Assurance & Testing, New Product Introduction b. Project Management, Idea Sourcing & Management, Document Management, Quality Assurance & Testing, New Product Introduction c. Project Management, Idea Sourcing & Management, Quality Assurance & Testing, Document Management, New Product Introduction d. Idea Sourcing & Management, Project Management, Quality Assurance & Testing, Document Management, New Product Introduction 5. Which of the following is the sequence of activities in the Demand-to-Order Process in CRM?

*a. Demand Generation, Opportunity Management, Quotations & Bidding, Sales Order Conversion, Customer Service and Support b. Opportunity Management, Demand Generation, Quotations & Bidding, Sales Order Conversion, Customer Service and Support c. Opportunity Management, Demand Generation, Sales Order Conversion, Quotations & Bidding, Customer Service and Support d. Demand Generation, Opportunity Management, Sales Order Conversion, Quotations & Bidding, Customer Service and Support 6. Which of the following is the sequence of activities in the Human Capital Management Process? *a. Recruit Employees, Employee On-Boarding, Performance Management, Career Planning, Employee Off-Boarding b. Employee On-Boarding, Recruit Employees, Performance Management, Career Planning, Employee Off-Boarding c. Employee On-Boarding, Recruit Employees, Career Planning, Performance Management, Employee Off-Boarding d. Recruit Employees, Employee On-Boarding, Career Planning, Performance Management, Employee Off-Boarding 7. Which of the following processes is associated with this sequence :Recruit Employees, Employee On-Boarding, Performance Management, Career Planning, Employee Off-Boarding? *a. Human Capital Management Process b. Demand-to-Order Process in CRM c. Idea-to-Market Process in PLM d. Source-to-Settle Process in SRM 8. Which of the following processes is associated with this sequence: Demand Generation, Opportunity Management, Quotations & Bidding, Sales Order Conversion, Customer Service and Support? *a. Demand-to-Order Process in CRM b. Idea-to-Market Process in PLM c. Source-to-Settle Process in SRM d. Plan-to-Produce Process in SCM 9. Which of the following processes is associated with this sequence: Idea Sourcing & Management, Project Management, Document Management, Quality Assurance & Testing, New Product Introduction? a. Human Capital Management Process *b. Idea-to-Market Process in PLM c. Source-to-Settle Process in SRM d. Plan-to-Produce Process in SCM

10. Which of the following processes is associated with this sequence: Supplier Identification & Selection, Requests for Quotation (RFQ), Manage Auctions & Bidding, Establish & Manage Contracts, Monitor Supplier Relationships? a. Human Capital Management Process b. Demand-to-Order Process in CRM *c. Source-to-Settle Process in SRM d. Plan-to-Produce Process in SCM 11. Which of the following processes is associated with this sequence: Supply Network Forecasting, Demand Planning, Production Capacity Planning, Material Logistics, Production & Material Scheduling? a. Human Capital Management Process b. Idea-to-Market Process in PLM *c. Plan-to-Produce Process in SCM d. Asset Management Process 12. Which of the following processes is associated with this sequence: Acquire Assets, Deploy Assets, Maintain Assets, Asset Accounting, Retire/Replace Assets? a. Human Capital Management Process b. Demand-to-Order Process in CRM c. Source-to-Settle Process in SRM *d. Asset Management Process 13. The integrated process is triggered by which previously discussed process? *a. Fulfillment b. Procurement c. Production d. Human Resources 14. In the integrated process, under which of the following conditions will the fulfillment process steps be suspended until the production process steps are complete? a. When there are insufficient quantities of raw materials in inventory b. When a customer order is received *c. When there are insufficient quantities of the finished product in inventory d. When the company is waiting for a shipment from a vendor

1. Procurement, fulfillment, and production are examples of intra-company processes.

True 2. Procurement, fulfillment, and production are examples of inter-company processes.

False 3. Supply chain management (SCM) and customer relationship management (CRM) are examples of inter-company processes.

True 4. Supply chain management (SCM) and customer relationship management (CRM) are examples of intra-company processes.

False 5. The integrated process essentially includes all the steps in the fulfillment, procurement, and production processes.

True 6. In the integrated process, the steps related to procurement are triggered by a need to increase inventory of finished products.

False 7. In the integrated process, the steps related to fulfillment are suspended when there are insufficient quantities of the needed finished product in stock.

True 8. In the integrated process, the steps related to the production process are suspended when there are insufficient quantities of the needed finished product in stock.

False 9. In the integrated process, the steps related to the production process are suspended when there are insufficient quantities of the needed raw materials in stock.

True 10. In the integrated process, a make-to-stock strategy is employed by SSB. False