Accounting Information Systems (Bus 120B) Chapter 10 Study Guide
Output devices that capture printed images or documents and convert them into electronic digital signals that can be stored in computer media are called scanners.
False
Preformatted screens in the OE/S process are a control plan that involves the detailed comparison of the individual elements appearing on two source documents.
False
Sell-side systems use the Internet to automate and manage corporate vendors and purchases.
False
A customer acknowledgment is sent to the billing department to notify them of a pending shipment.
False
A packing slip authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.
False
A picking ticket is affixed to the inventory package sent to the customer and identifies the customer and the contents of the package.
False
Bar code readers are used to recognize patterns of handwritten or printed characters.
False
Basket analysis uses advanced statistical analysis of prior consumer behavior to create clusters of different types of potential buyers.
False
Buy-side systems are designed to allow a company to market, sell, deliver, and service goods and services to customers throughout the world via the Internet.
False
Cluster analysis analyzes a customer's past purchasing behavior to help marketing develop strategies for future purchases.
False
Customer Relationship Management (CRM) tools can be used by marketing managers to connect with customers, to learn what they like and don't like, and about new products that they want.
False
Data warehousing is a simple effort for a company to implement.
False
If a check of the customer master data shows that the goods requested on a customer order are not in stock, an exception routine called a back order is initiated.
False
If a customer refuses to accept a back order, then the sales event is terminated and the sales order is accepted.
False
In the E-R diagram for OE/S, STOCK_PICK triggers the SALES_INVOICES.
False
One-for-one checking in the OE/S process is a control plan that simplifies the data entry process, and may prevent the customer service representative from omitting data, to fill in certain fields, and reject incorrectly formatted fields to reduce input errors.
False
Optical character recognition (OCR) devices use light reflection to read differences in code patterns in order to identify a labeled item.
False
The OE/S process helps support the decision needs of the accounting department.
False
The OE/S process supports the decision needs of various sales and marketing managers.
False
The first step in the order-to-cash process is sales order processing.
False
The flow of information from OE/S to marketing managers is an example of horizontal information flows.
False
The flow of information from OE/S to the credit department is an example of vertical information flows.
False
The inventory master data normally contains standing data about each customer, such as name, billing and ship-to address, and telephone number.
False
Uplift modeling can identify those possible customers most likely to respond to advertisements and other types of offers.
False
Vendor acknowledgments are sent to vendors to notify them that their orders have been accepted and to inform them of the expected delivery date.
False
Depending on how the OE/S process is designed, the sales order master data may be updated at least twice: once when a new sales order is created and later to reflect the shipment of that order.
True
For companies using enterprise systems, CRM systems often share the same underlying database.
True
In the E-R diagram for OE/S, SALES_ORDERS activates the STOCK_PICK.
True
In the E-R diagram for OE/S, SHIPMENTS generate the SALES_INVOICES.
True
A bill of lading is the document representing the contract between the shipping company and the common carrier.
True
A customer acknowledgment is sent to the customer to notify him or her of the order's acceptance and the expected shipping date.
True
A customer order triggers the OE/S process.
True
A customer request for goods might take the physical form of a telephone call, an EDI transmission, an entry on a Web site, or a faxed or mailed customer order.
True
A tickler file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that file.
True
Analytical applications, which include data mining, are intended to allow the use of sophisticated statistical and other analytical software to help an organization's members develop insights about customers, processes, and markets.
True
CRM modules use data mining techniques to interact with customers on almost every level.
True
CRM software is designed to manage all the data related to customers, such as marketing, field service, and contact management data.
True
Cloud computing is often used to facilitate connections to customers, to improve customer service, to reduce costs, and to improve process timeliness.
True
Cluster analysis is a data mining technique used to partition out various groups of customers.
True
Confirm input acceptance in the OE/S process is a control plan that tells the customer service representative that the order has been accepted.
True
Customer credit check is a control plan that ensures that the organization protects its resources by dealing only with customers who have demonstrated an ability to satisfy their liabilities.
True
Data warehousing applications in organizations are usually viewed as being focused on either operational or analytical applications.
True
One of the primary functions of the OE/S is to create information flows which support the repetitive work routines of the sales order department, credit department, and shipping department.
True
Online prompting in the OE/S process is a control plan that advises the customer service representative to check their data entries for accuracy before moving on.
True
Sales-force automation software may be used to route calls to a particular sales representative who has previously worked with the customer.
True
Sales-related data are first captured in the sales order department and then flow vertically to marketing managers.
True
The OE/S process sends the sales order notification to the billing department to notify them of a pending shipment.
True
The completed picking ticket file provides an audit trail of authorized inventory transfers made between the warehouse and the shipping department.
True
The customer master data is a data store that contains data identifying the particular characteristics of each customer.
True
The last step in the order-to-cash process is shipping.
True
The marketing data is a repository of a variety of sales-oriented data, some of which result from recording sales events and some of which originate from activities that do not culminate in completed sales, such as presales activities.
True
The order entry/sales (OE/S) process includes the first four steps in the order-to-cash process: presales activities; sales order processing; picking and packing the goods; and shipping.
True
When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the customer number.
True
A specific type of reject stub is called a(n): a. exception routine b. summary report c. corrective routine d. normal routine
a. exception routine
Bar code readers: a. are devices that use light reflection to read differences in bar code patterns to identify a labeled item. b. are devices used for pattern recognition of handwritten or printed characters. c. are input devices that capture printed images or documents and convert them into electronic digital signals that can be stored on computer media. d. are computer-based systems for capture, storage, retrieval, and presentation of images of objects such as pictures and documents.
a. are devices that use light reflection to read differences in bar code patterns to identify a labeled item.
An example of an "exception routine" is a(n): a. back order process b. inventory subroutine c. customer acknowledgment process d. sales order processing process
a. back order process
The file most important for ensuring validity of customer order inputs is the: a. customer master data b. accounts receivable master data c. marketing data d. completed picking ticket data
a. customer master data
The concept behind ____ is to cultivate customer relationships by prospecting, acquiring, servicing, and retaining customers. a. customer relationship management (CRM) systems b. customer self-service (CSS) software c. sales-force automation (SFA) software d. sell-side systems
a. customer relationship management (CRM) systems
Analytical applications, which include ____, are intended to allow the use of sophisticated statistical and other analytical software to help an organization's members develop insights about customers, processes, and markets. a. data mining b. data entry c. e-commerce modules d. market segmentation models
a. data mining
For a typical OE/S process to check a customer's credit, all of the following data stores likely would be consulted except the: a. general ledger master data b. customer master data c. accounts receivable master data d. sales order master data
a. general ledger master data
In a logical DFD for the OE/S process, which of the following data stores is least likely to interact with the process validate sales order? a. general ledger master data b. accounts receivable master data c. marketing data d. inventory master data
a. general ledger master data
To develop insights about relationships within the marketing information in warehouse data, researchers can use: a. neural networks b. comprehensive statistical analysis packages c. graphical presentation software d. all of the choices are correct
a. neural networks
The OE/S process is part of the ____ process. a. order-to-cash b. purchase-to-pay c. human resources d. general ledger/financial reporting
a. order-to-cash
The OE/S process includes the first four steps in the order-to-sales process. The order of these four steps is: a. pre-sales activities, sales order processing, picking and packing, shipping b. pre-sales activities, picking and packing, sales order processing, shipping c. pre-sales activities, picking and packing, shipping, sales order processing d. none of the choices are correct
a. pre-sales activities, sales order processing, picking and packing, shipping
In addition to the warehousing function, the three primary departments that you would expect to be part of a typical OE/S process are: a. sales order, shipping, and credit b. sales order, shipping, and accounts payable c. sales order, credit, and accounts payable d. credit, shipping, and accounts payable
a. sales order, shipping, and credit
When the sales-related data are captured in the sales order department and then the information flows to the managers housed in the marketing department, it is an example of a: a. vertical information flow b. horizontal information flow c. both vertical and horizontal information flows d. neither vertical nor horizontal information flow
a. vertical information flow
____ systems use the Internet to automate and manage purchases and the vendors from which these purchases are made with the predominate technology being electronic data interchange (EDI). a. Customer relationship management b. Buy-side c. Sell-side d. E-business
b. Buy-side
____ applications in organizations are usually viewed as being focused on either operational or analytical applications. a. Data mining b. Data warehousing c. Data entry d. Market segmentation
b. Data warehousing
A data flow or event that causes a process to begin is called a: a. tickler b. trigger c. document d. validity check
b. trigger
A valid shipping notice input is one that is supported by both: a. an approved sales order and a completed picking ticket b. an approved sales order and an actual shipment of goods c. an approved sales order and a customer acknowledgment d. an approved sales order and customer credit verification
b. an approved sales order and an actual shipment of goods
A document that is used to notify the customer of the order's acceptance and the expected shipment date is called a: a. shipping order b. customer acknowledgment c. sales order notification d. blind authorization
b. customer acknowledgment
When the sales order department acknowledges a customer order, it is an example of a: a. vertical information flow b. horizontal information flow c. both vertical and horizontal information flows d. neither vertical nor horizontal information flow
b. horizontal information flow
Which of the following data stores is designed primarily to serve the vertical information needs of the organization rather than the horizontal information flows? a. inventory master data b. marketing data c. sales order master data d. customer master data
b. marketing data
In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the: a. bill of lading b. sales order c. customer acknowledgment d. shipping notice
b. sales order
The control plan preformatted screens is directed primarily toward achieving the information process control goal of ensuring: a. sales order input validity b. sales order input accuracy c. sales order input completeness d. sales order update completeness
b. sales order input accuracy
Tools, which include ____, are used by marketing managers to build loyalty, increase sales, and help develop new and improved products. a. social networking software b. sales-force automation (SFA) software c. supply chain management (SCM) software d. customer self-service (CSS) software
b. sales-force automation (SFA) software
In an entity-relationship (E-R) diagram for the OE/S process, you would expect that the word trigger would appear in the diamond showing the relationship between which of the following pairs of entities? a. CUSTOMER and SALES ORDER b. CUSTOMER and SHIPMENT c. STOCK PICK and SHIPMENT d. SALES INVOICE and SHIPMENT
c. STOCK PICK and SHIPMENT
The OE/S process addresses the decision needs of managers of various sales and marketing functions through the use of: a. vertical information flows b. horizontal information flows c. both vertical and horizontal information flows d. neither vertical nor horizontal information flow
c. both vertical and horizontal information flows
In constructing a control matrix for an OE/S process, the principal data input(s) to the information system likely would be: a. customer inquiries and customer order inputs b. customer inquiries and shipping notice inputs c. customer order and shipping notice inputs d. customer order only
c. customer order and shipping notice inputs
The system that enables users of an ERP system to view source documents from any location is: a. electronic data interchange b. local area network c. digital image processing d. electronic commerce
c. digital image processing
To satisfy customers, the focus of new OE/S systems is generally on: a. mass marketing b. segmented marketing strategies c. individual customers d. all of the choices are correct
c. individual customers
In the control matrix of the OE/S process, regarding shipping notice inputs, which of the following control goals is ensured by comparing the shipping notice input to the sales order master data? a. input completeness and input accuracy b. input completeness and input validity c. input validity and input accuracy d. none of the choices are correct
c. input validity and input accuracy
A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a: a. shipping order b. packing slip c. picking ticket d. blind authorization
c. picking ticket
The control plan confirm input acceptance helps to achieve the sales order input control goal of: a. sales order input validity b. sales order input accuracy c. sales order input completeness d. shipping notice input accuracy
c. sales order input completeness
The grouping of customers into categories based on key characteristics is called: a. itemization b. Identification c. segmentation d. sales-force automation
c. segmentation
The ultimate goal of the OE/S process is: a. to ensure accuracy of order entry and sales events b. to ensure increasing sales volume through the OE/S process c. to create value for the customer d. none of the choices are correct
c. to create value for the customer
Which of the following goals is not an example of an operations process goal of the typical OE/S process? a. to provide timely responses to customer inquiries b. to provide timely acknowledgments of customer orders c. to provide timely updates to general ledger accounts d. to provide timely shipments of goods to customers
c. to provide timely updates to general ledger accounts
With companies facing global competition, firms are recognizing that their most important asset is: a. inventory b. employees c. cash d. a happy customer
d. a happy customer
Which of the following is a horizontal information flow? a. sales order department requests credit approval from credit department b. sales order department acknowledges the order to the customer c. warehousing sends completed picking ticket to shipping d. all of the above are horizontal information flows
d. all of the above are horizontal information flows
In the OE/S process, data maintenance is performed to: a. create a customer master record b. create inventory master records c. create a customer credit limit d. all of the choices are correct
d. all of the choices are correct
Which of the following documents represents a contract between two parties? a. shipping's inventory notification b. packing slip c. customer acknowledgment d. bill of lading
d. bill of lading
Assuming that we separate the shipping and billing processes, which of the following data stores would you expect to be updated by an OE/S process called execute shipping notice? a. accounts receivable master data b. sales order master data c. inventory master data d. both b. and c.
d. both b. and c
In a typical OE/S process, validating a sales order likely would involve all of the following processes except: a. checking the customer's credit b. verifying inventory availability c. completing the sales order d. completing the picking ticket
d. completing the picking ticket
Digital image processing systems are capable of performing all of the following except: a. capture of data b. storage of data c. retrieval of data d. creation of data
d. creation of data
Assuming that we separate the shipping and billing processes, which of the following data stores provides data to the typical OE/S process but is not updated by the process? a. general ledger master data b. sales order master data c. inventory master data d. customer master data
d. customer master data
The primary function of the OE/S process is to create information flows that support: a. decision making of sales personnel b. the key organizational features of the marketing function c. producing financial statements d. decision needs of those who manage various sales and marketing functions
d. decision needs of those who manage various sales and marketing functions
The OE/S process handles the processing and shipment of a customer order while another process actually bills the customer. With such a configuration, you would not expect the OE/S system to interface directly with the ____. a. billing/accounts receivable/cash receipts process b. inventory process c. general ledger process d. human resource process
d. human resource process
Which of the following data is least likely to be stored in the customer master data? a. customer number b. billing address c. ship-to address d. open invoices
d. open invoices
At the time that the shipping notice is prepared and disseminated, two data stores within the OE/S process are normally updated. Those two data stores are the: a. customer master data and accounts receivable master data b. accounts receivable master data and sales order master data c. accounts receivable master data and marketing data d. sales order master data and inventory master data
d. sales order master data and inventory master data
