MGT 351 Chapter 1 Review
Which of the following activities are related to the procurement process? a. Issue Materials b. Receive Materials c. Store Materials d. Ship Materials
Receive Materials Store Materials
Which of the following departments are involved in the fulfillment (sell) process? a. Sales b. Warehouse c. Accounting d. Production
Sales Warehouse Production
Which term refers to a system in which workers complete their tasks in separate departments without regard to the consequences for the other components of the process? a. ERP Effect b. Cross-Functional c. Matrix structure d. Enterprise Systems e. Silo Effect
Silo Effect
In the functional approach, companies end up storing excess inventories to deal with the uncertainties in demand.
True
Losing sight of the big picture is commonly referred to as the silo effect.
True
Management accounting helps an organization track costs and revenues to assess its profitability
True
Successful companies operate cross-functionally, integrating the activities of all departments
True
The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization's customers.
True
Which system supports business processes end to end? a. Management System b. Accounting System c. Enterprise System d. Functional Structure e. Document System
Enterprise System
An enterprise system is a set of tasks or activities that produce desired outcomes.
False
In the fulfillment process, the sales order is created after the invoice is received from the
False
Information Systems that support end-to-end processes are called business processes.
False
One of the disadvantages of the business process approach is increased lead times
False
The business process approach is enabled and supported by stand-alone and legacy
False
The financial accounting process focuses on internal reporting to manage costs and revenues
False
The functional approach focuses on the flows of material, documents, information, and financials between functional departments / organizations.
False
The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs.
False
Which process tracks the financial impact of process steps with the goal of meeting legal reporting requirements? a. Human Capital Management (HCM) b. Project Management c. Financial Accounting (FI) d. Management Accounting or Controlling (CO) e. None of the above
Financial Accounting (FI)
Which processes track the impact of processes on an organization's finances? a. Financial accounting processes b. Project management processes c. Management accounting or controlling processes d. Material planning process e. Procurement process
Financial Accounting processes Management Accounting or Controlling processes
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
The most common organizational structure within organizations is the functional structure.
True
The procurement process includes all of the tasks involved in acquiring needed materials
True
What is the final step of the procurement process? a. Invoice b. Purchase Requisition c. Purchase Order d. Payment e. None of the above
Payment
Which of the following statements about business processes is true? a. They are executed across multiple functions. b. They are initiated by some type of trigger. c. They involve multiple steps. d. All of the above e. None of the above
All of the above
Which term represents a set of tasks or activities that produce desired outcomes? a. Business Process b. Trigger c. Outcome d. Enterprise Resource Planning e. None of the above
Business Process
Which term refers to business activities that are not executed by a single group or function? a. Silo Effect b. Cross-Functional c. Functional Structure d. Enterprise Systems e. Organizational Structure
Cross-Functional
Which process focuses on people within an organization and includes functions such as recruiting, hiring, training, and benefits management? a. Human Capital Management (HCM) b. Project Management c. Financial Accounting d. Management Accounting or Controlling (CO) e. None of the above
Human Capital Management (HCM)
Which processes focus primarily on people and projects? a. Financial accounting processes b. Procurement process c. Production process d. Human capital management processes e. Project management processes
Human Capital Management processes Project Management processes
Which of the following is concerned with the storage and movement of materials? a. Business Planning b. Silo Effect c. Project Management d. Material Planning e. Inventory and warehouse management (IWM)
Inventory and Warehouse Management (IWM)
Which process supports the design and development of products from the initial product idea stage through the discontinuation of the product? a. Material Planning b. Procurement Process c. Production Process d. Fulfillment Process e. Lifecycle Data Management
Lifecycle Data Management
Which process uses historical data and sales forecasts to plan which materials will be procured and produced? a. Material Planning b. Procurement Process c. Production Process d. Fulfillment Process e. Lifecycle Data Management
Material Planning
___________ is concerned with matching the demand for materials in the organization with the supply. a. Business Planning b. The Silo Effect c. Project Management d. Material Planning e. None of the above
Material Planning
Which of the following activities are related to the fulfillment process? a. Prepare Shipment b. Create goods receipt c. Store Materials d. Ship to Customer
Prepare Shipment Ship to customer
What function does the warehouse perform in the fulfillment process? a. Prepares and sends the shipment to the customer b. Communicates data related to the initial order to other parts of the organization c. Checks customer credit d. Sends invoice e. None of the above
Prepares and sends the shipment to the customer
Which term refers to all of the activities involved in buying or acquiring the materials used by the organization, such as raw materials needed to make products or trading goods ? a. Material Planning b. Procurement Process c. Production Process d. Fulfillment Process e. Lifecycle Data Management
Procurement process
Which process is used to plan and execute large projects such as the construction of a new factory or the production of complex products such as airplanes? a. Human Capital Management (HCM) b. Project Management c. Financial Accounting (FI) d. Management Accounting or Controlling (CO) e. None of the above
Project Management
What steps are involved in the accounting portion of the procurement process? a. Receiving the materials and the invoice b. Creating the purchase requisition and sending payment c. Creating and sending the purchase order d. Creating the purchase requisition and receiving the materials e. Receiving the invoice and sending payment
Receiving the Invoice and sending payment
What is the first step of the production process? a. Authorize Production b. Request Production c. Create Product d. Receive Finished Goods e. Issue Raw Materials
Request Production
Which of the following departments are involved in the procurement process? a. Warehouse b. Purchasing c. Sales d. Accounting
Warehouse Purchasing Accounting
Which of the following departments are involved in the production (make) process? a. Sales b. Human Resources c. Warehouse d. Production
Warehouse Production
