ERP - Exam 1 - Chapter 1 - T/F

13. Lead time is the time between placing the order and receiving confirmation that the item has been shipped.

False

16. Excess supply will result in lower inventory costs because the company is eligible for a bulk rate.

False

18. Large warehouses do not need to move items as quickly and efficiently as smaller warehouses.

False

21. The final stage of asset management and customer service is the authorization maintenance stage.

False

23. A project is permanent in nature and is typically associated with smaller, simpler projects.

False

27. Accounts payable is used to track money owed by customers.

False

29. Accounts receivable is used to track money that is owed to vendors.

False

3. Systems that support end-to-end processes are called business processes.

False

4. An enterprise system is a set of tasks or activities that produce desired outcomes.

False

7. The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs.

False

9. The financial accounting process focuses on internal reporting to manage costs and revenues.

False

1. The most common organizational structure within modern organizations is the functional structure.

True

10. The procurement process includes all of the tasks involved in acquiring needed materials.

True

11. Within the production process, the issuing of raw materials takes place in the warehouse.

True

12. Materials encompass all the products, components, and parts that are used in an organization.

True

14. The purpose of material planning is to match supply with demand.

True

15. Insufficient supply results in a situation called "stock out."

True

17. Forecasts of finished goods are determined by data from material planning.

True

19. Asset management is concerned with both the preventive and the corrective maintenance of an organization's equipment.

True

2. Losing sight of the big picture is commonly referred to as the silo effect.

True

20. Document management provides tools to manage and store documents securely and to keep track of the multiple versions of these documents.

True

22. The final stage of the customer service process is the settlement stage.

True

24. During the planning phase of a project the scope of the project is defined and the milestones and deadlines are established.

True

25. Projects rely on resources located in and work performed in other processes.

True

26. Common reports of financial accounting include income statement, profit and loss, and balance sheet.

True

28. Asset accounting is concerned with tracking financial data related to assets such as machinery and cars.

True

30. Management accounting helps an organization track costs and revenues to assess its profitability

True

5. Without the various steps of the business process, a company can't successfully bill customers and ship products.

True

6. The lifecycle data management (design) process supports the design and development of products from the initial product idea stage through the discontinuation of the product.

True

8. The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization's customers.

True