AIS Ch 12

c. purchase order preparation costs

Which of the following is not a cost element as part of the inventory carrying costs? a. insurance costs b. property taxes c. purchase order preparation costs d. storage costs

c. reduced customer orders

Which of the following is not a potential benefit of supply chain management? a. lower costs to the customer b. reduced inventories c. reduced customer orders d. reduced product defects

d. Receive

Which of the following is not included in the SCOR model as one of the five basic components of supply chain management? a. Plan b. Source c. Deliver d. Receive

a. minimize inventory carrying costs

Which of the following items is not a control plan of the purchasing process? a. minimize inventory carrying costs b. approved purchase order c. compare vendors for favorable prices, terms, quality, and product availability d. PO confirmation to requesting department

a. accounts payable department manager

Which of the following managers is most likely to report to the controller? a. accounts payable department manager b. cashier c. purchasing department manager d. receiving department manager

c. quantities

Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department? a. inventory descriptions b. vendor identification c. quantities d. freight terms

a. make payment

Which of the following process bubbles would you not expect to see in the Purchasing Process - Level 0 Diagram? a. make payment b. order goods and services c. receive goods and services d. determine requirements

c. EOQ models

Which of the following techniques analyzes all incremental costs associated with acquiring and carrying particular items of inventory? a. cyclical reordering b. reorder point analysis c. EOQ models d. ABC analysis

b. reorder point (ROP) analysis

Which of the following techniques has the reorder point based on each inventory item's sales rate? a. cyclical reordering b. reorder point (ROP) analysis c. ABC analysis d. EOQ models

d. receiving clerks will be forced to actually count the goods that are received

A "blind" copy of the purchase order should be sent to receiving so that: a. receiving can anticipate the receipt of the goods from the vendor b. receiving clerks will know the value of what is on order c. partial shipments can be monitored d. receiving clerks will be forced to actually count the goods that are received

a. send a "blind" copy of the purchase order to receiving

A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to: a. send a "blind" copy of the purchase order to receiving b. establish a "tickler" file for completed purchase orders c. send copies of a receiving report to accounts payable d. establishing "blanket orders" in purchasing

c. acceptance report

A receiving report is to goods what a(n) ____ is to services. a. purchase requisition b. purchase order c. acceptance report d. vendor packing slip

c. work performed by outside vendors

As used in the text, the term services specifically refers to: a. items having a physical existence and value b. work performed by employees c. work performed by outside vendors d. products normally held for resale

a. purchase order

Assume that one of the process bubbles in the Purchasing Process - Level 0 Diagram is called "order goods and services." The data flow between "order goods and services" and the "vendor" is called a: a. purchase order b. receiving report c. stock notice d. inventory notice

a. purchase receipts data

At the time that a purchasing orders goods and services, the process is likely to interact with all of the following data stores except the: a. purchase receipts data b. vendor master data c. inventory master data d. purchase order master data

c. purchase order master data

At the time that a purchasing process places an order for goods or services, which of the following is typically updated? a. accounts payable master data b. purchase receipts data c. purchase order master data d. general ledger master data

b. vendor master data

Data about vendor compliance with the terms of the purchase order normally would be included in the: a. accounts payable master data b. vendor master data c. inventory master data d. warehouse master data

a. VENDORS

In a database containing (among others) six relationsVENDORS, PURCHASE_REQUISITIONS, PURCHASE_ORDERS, PURCHASE_RECEIPTS, INVENTORY, and EMPLOYEESyou would expect that the attribute Vend_No (vendor number) would be the primary key in the ____ relation. a. VENDORS b. PURCHASE_ORDERS c. PURCHASE_RECEIPTS d. EMPLOYEES

b. the purchase order

In a purchasing process, once requirements are determined and a vendor selected, the next step is: a. the purchase requisition b. the purchase order c. receive goods and services d. a vendor acknowledgement

c. accounts payable master data

In a purchasing process, receiving goods, but not a vendor invoice, from a supplier typically results in an update to all of the following data stores except the: a. inventory master data b. vendor master data c. accounts payable master data d. purchase order master data

b. cashier

In a purchasing process, the receiving report may be accessed by all of the following except: a. accounts payable department b. cashier c. warehouse d. requesting department

d. PURCHASE_REQUISITIONS and PURCHASE_ORDERS

In an entity-relationship (E-R) diagram for the purchasing process, you would expect that the word generate would appear in the diamond showing the relationship between: a. VENDOR and PURCHASE_ORDERS b. VENDOR and EMPLOYEES c. VENDOR and PURCHASE_REQUISITIONS d. PURCHASE_REQUISITIONS and PURCHASE_ORDERS

b. PURCHASE_ORDERS and PURCHASE_RECEIPTS

In an entity-relationship (E-R) diagram for the purchasing process, you would expect that the word yield would appear in the diamond showing the relationship between: a. PURCHASE_REQUISITIONS and INVENTORY_RECEIPT b. PURCHASE_ORDERS and PURCHASE_RECEIPTS c. VENDOR and PURCHASE_ORDERS d. VENDOR and PURCHASE_REQUISITIONS

c. determine requirements

In the Purchasing Process - Level 0 Diagram, a data flow called "inventory's purchase requisition" most likely would be sent by the inventory management process to which of the following processes? a. order goods and services b. receive goods and services c. determine requirements d. none of the above

b. receive goods and services

In the Purchasing Process - Level 0 Diagram, a data flow called "vendor packing slip" would most likely be sent by the vendor to which of the following processes? a. order goods and services b. receive goods and services c. determine requirements d. none of the above

d. ABC analysis

Which of the following is a technique for ranking items in a group based on the value, activity, sales, or other relevant metric for the items? a. cyclical reordering b. reorder point analysis c. EOQ models d. ABC analysis

d. compare the vendor's packing slip to a copy of the purchase requisition

In the process of preparing a receiving report, the receiving department should perform all of the following tasks except: a. inspect and approve quality b. count the quantity received c. compare the completed receiving report to the information stored in the purchase order master data d. compare the vendor's packing slip to a copy of the purchase requisition

a. clerical cost of ordering goods

Inventory carrying costs include all of the following except: a. clerical cost of ordering goods b. opportunity cost of investment funds c. insurance costs d. obsolescence and deterioration

b. corporate codes of conduct

Issues related to the purchasing function, such as kickbacks, bribes, conflicts of interest, and the like are often addressed by ____. a. job descriptions b. corporate codes of conduct c. computer security modules d. vendor master files

d. vendor invoice

Outputs of a purchasing process normally might include all of the following except: a. purchase order b. PO inventory notification sent to the inventory system c. receiving report d. vendor invoice

b. vendors

Purchase orders are sent to: a. customers b. vendors c. carriers d. managers

b. helps to ensure delivery of goods and services to customers at the lowest costs while providing the highest value.

Supply chain management: a. helps to ensure delivery of goods and services to customers of the highest value but increases costs. b. helps to ensure delivery of goods and services to customers at the lowest costs while providing the highest value. c. helps to ensure delivery of goods and services to customers at the lowest cost but can comprise quality. d. increases inventory across the supply chain.

d. purchase order master data

The ____ is a compilation of open purchase orders and includes the status of each item on order. a. accounts payable master data b. vendor master data c. vouchers payable master data d. purchase order master data

a. ensure effectiveness of operations

The control plan compare vendors for favorable prices, terms, quality, and product availability is directed primarily at which of the following control goals? a. ensure effectiveness of operations b. input validity c. input accuracy d. input completeness

c. purchase order

The document one business sends to another business that identifies the goods or services to be purchased is a: a. request for proposal b. purchase requisition c. purchase order d. disbursement voucher

a. goal congruence

The purchasing manager is evaluated by his/her supervisors based on purchasing inventory at the lowest price. Consequently, the purchasing manager knowingly orders materials only based on price. This has resulted in the purchase of inferior quality materials. This improved the purchasing manager's performance evaluation, but had a negative impact on production due to an increase in scrapped materials. This situation is an example of a failure of: a. goal congruence b. management perquisites c. management by exception d. control theory

b. purchase-to-pay

The purchasing process is part of the ____ process for a merchandising firm. a. order-to-cash b. purchase-to-pay c. conversion d. general ledger/financial reporting

c. vendor packing slip

The purchasing processreceive goods and servicesnormally would be triggered by the data flow: a. purchase order b. vendor acknowledgement c. vendor packing slip d. purchase requisition

c. both a and b

The resources for which the purchasing process wants to ensure security for which of the following: a. purchase order master data b. inventory c. both a and b d. neither a or b

d. a copy of a receiving report is sent to the cashier

The typical information flows in a purchasing process might include all of the following except: a. a purchase requisition is sent from inventory control to the purchasing department b. the purchase order is sent to the vendor c. goods or services are received from the vendor d. a copy of a receiving report is sent to the cashier

a. shipping

The typical purchasing process would capture and record data related to the day-to-day operations of all of the following except: a. shipping b. buyers c. receiving d. purchasing

a. receive goods and services

The vendor packing slip triggers which process? a. receive goods and services b. order goods and services c. determine requirements d. none of the above

c. request for quotation

When large or expensive items are purchased, most organizations make use of a procedure to obtain competitive bids from multiple vendors. The document used to obtain competitive bids is called a(n): a. purchase requisition b. purchase order c. request for quotation d. authorization to bid

d. cash receipts event data

Which of the following data stores would you least expect to see in the Purchasing Process - Level 0 Diagram? a. inventory master data b. vendor master data c. purchase order master data d. cash receipts event data

d. all of the above

Which of the following is a potential problem with supply chain management initiatives? a. confused lines of responsibility b. inaccurate data within the supply chain c. over-reliance on demand forecasting d. all of the above

a. controller

Which of the following is least likely to report directly to the vice president of logistics? a. controller b. receiving department c. purchasing department d. warehouse

d. Collaborative Planning, Forecasting and Replenishment (CPFR)

Which type of supply chain collaboration methods includes collaborative processes across the supply chain using a set of processes and technology models? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Co-Managed Inventory c. Collaborative Forecasting and Replenishment (CFAR) d. Collaborative Planning, Forecasting and Replenishment (CPFR)

c. Collaborative Forecasting and Replenishment (CFAR)

Which type of supply chain collaboration methods includes the retailer and manufacturer forecasting demand and scheduling production jointly? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Co-Managed Inventory c. Collaborative Forecasting and Replenishment (CFAR) d. Collaborative Planning, Forecasting and Replenishment (CPFR)

a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI)

Which type of supply chain collaboration methods includes the vendor obtaining the buyer's current sales, demand, and inventory data in real time and replenishing the buyer's inventory? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Collaborative Forecasting and Replenishment (CFAR) c. Collaborative Planning, Forecasting and Replenishment (CPFR) d. None of the above

b. Co-Managed Inventory

Which type of supply chain collaboration methods includes the vendor replenishing standard merchandise while the buyer manages the replenishment of promotion merchandise? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Co-Managed Inventory c. Collaborative Forecasting and Replenishment (CFAR) d. Collaborative Planning, Forecasting and Replenishment (CPFR)

a. the supervisor of the requisitioning department

Who usually authorizes a purchase requisition? a. the supervisor of the requisitioning department b. the purchasing manager c. a purchasing agent d. a customer