Business Process Management Midterm

Supply chain management (SCM) systems help companies execute the processes of research, design, and product management. T/F

False

Systems that support end-to-end processes are called business processes. T/F

False

Tangible assets are non-physical items such as trademarks and patents. T/F

False

The financial accounting process focuses on internal reporting to manage costs and revenues. T/F

False

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

False

Trading goods (HAWA) are resold to customers after they have been modified by the company. T/F

False

Balance sheet accounts are grouped into which of the following categories?

Assets, Liabilities, & Equity

A plant can be used to represent which of the following?

Factory, Office, Storage Facility

A client represents each company within an enterprise. T/F

False

A list of accounts that can be included in a general ledger is called master data. T/F

False

A plant can belong to more than one CC. T/F

False

A purchasing organization is an individual or a group of individuals who are responsible for purchasing activities for a material or group of materials. T/F

False

A reconciliation account records the impact of a transaction step on financial accounting. T/F

False

An increase in an asset account or an expense account results in a credit posting. T/F

False

Assets are monies the company earns by selling its products and services. T/F

False

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

False

Management accounting, or controlling (CO), is intended primarily for audiences outside the organization. T/F

False

What data are included in a purchasing info record?

Freight Discounts Texts

Which process focuses on people within an organization and includes functions such as recruiting, hiring, training, and benefits management?

Human Capital Management (HCM)

Which of the following statements regarding master data are true?

Master data represent entities such as customers and vendors. Master data are a consequence of the execution of process steps

Which of the following terms refers to materials with similar characteristics?

Material Group

___________ is concerned with matching the demand for materials in the organization with the supply.

Material Planning

Which process involves the actual creation of the products?

Production Process

The term materials encompasses which of the following?

Products, Components, Parts, & Anything used in an organization.

Which processes of an organization can be linked with procurement?

Project management Material planning Fulfillment (sales) Management accounting Financial accounting

Which of the following is not a mode of acquiring an asset for a company?

Selling equipment

Which element of the payment step includes selecting a bank?

Task

Which element of the requirements determination process involves the requisition creation?

Task

A storage location is a key organizational element in purchasing. T/F

True

Accounts receivable accounting is concerned with customers. T/F

True

Enterprise resource planning (ERP) focuses on the internal operations of an organization. T/F

True

Financial statements can be generated for different organizational levels including one or more company codes and business areas. T/F

True

Materials are categorized into different material types based on the way they are used in the firm's operations. T/F

True

SAP NetWeaver is the "operating system" for an entire company's business processes. T/F

True

The balance sheet is a snapshot of the organization at a point in time. T/F

True

The enterprise‐level purchasing organization is also known as the cross‐company code purchasing organization. T/F

True

The financial accounting documents, management accounting or controlling documents, and material documents are all "virtual." T/F

True

The most common organizational structure within modern organizations is the functional structure. T/F

True

When you access the Internet, your browser is the presentation layer. T/F

True

The COA segment of the COA data includes which of the following?

Account Number & Group

Which of the following is a key process in financial accounting?

Accounts receivable accounting

What are the most common transaction types that occur during the life of an asset?

Acquisition Depreciation Retirement

Which term refers to an ordered listing of accounts that comprise a company's general ledger?

Chart of accounts (COA)

Which one of the following is not a model of the purchasing organization?

Client Level

Which term refers to business processes that are not executed by a single group or function?

Cross-Functional

Which of the following statements regarding reconciliation accounts are not true?

Data are posted directly into them

Which of the following is NOT a document in Purchasing?

Delivery document

Which departments take part in the conception of an idea?

Engineering & Marketing

Which term represents the costs associated with creating and selling products and services?

Expenses

Which process tracks the financial impact of process steps with the goal of meeting legal reporting requirements?

Financial Accounting

Materials that are created by the production process from other materials are referred to as _____________

Finished Goods (FERT)

Materials can be withdrawn only for sampling or for scrap if they are designated as which terms?

In quality inspection Blocked stock

Which of the following statements concerning SAP NetWeaver are true?

It helps companies integrate with other non-SAP applications. It serves as the application platform on which the SAP Business Suite runs. It enables companies to plug in independent software vendor (ISV) applications on top of their core ERP and suite applications.

Which of the following statements regarding process level reporting are true?

It provides information on the performance of a process across many occurrences (e.g., customer orders over time). It is based on data in the transactional system. It uses aggregated data.

_____________enables an organization to optimize its product development process, from design to market, while ensuring that it complies with industry, quality, and regulatory standards?

Lifecycle Data Management

Which one of the following is not an organizational data type in procurement?

Manufacturing Plant

Which of the following statements about Purchasing Organization are correct?

Negotiates conditions of purchase with Vendors Can purchase for multiple plants

From which of the following can financial statements be generated?

Operative chart of accounts Country-specific chart of accounts

Which of the following is(are) used to represent the structure of an enterprise?

Organizational Data

In which components of the asset management process is production involved?

Performance Maintenance, Authorize Maintenance, & Request Maintenance

SAP can utilize which of the following forms of media to communicate with a vendor?

Print E-mail EDI Web services Fax

Which of the following systems helps companies administer the processes of research, design, and product management?

Product Lifecycle Management (PLM)

Which of the following is data needed for invoice verification?

Purchase order Material document Invoice User input

Which of the following is an intersection or combination of material and vendor data:

Purchasing info record

Which of the following activities are related to the procurement process?

Receive Materials, Prepare for Storage, & Store Materials

Which one of the following is not one of the data types that are relevant to the purchasing process?

Sales master

Which steps are involved in converting a purchase requisition to a purchase order?

Source list Outline purchase agreement Request for quotation

Information structures enable which types of analysis?

Standard and Flexible Analysis

Which of the following are methods of valuing materials?

Standard price Moving (average) price

Which type of asset has a physical form?

Tangible Assets

Which of the following statements about business processes is true?

They are executed across multiple functions. They are initiated by some type of trigger. They involve multiple steps. (All of the Above)

Which of the following are steps within a generic business process of an organization?

Trigger & Outcome

A plant can be a factory, a warehouse, a regional distribution center, or a service center. T/F

True

Within the production process, the issuing of raw materials takes place in the warehouse. T/F

True

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

True

Which of the following are components of the production (make) process?

Warehouse & Production

SAP can utilize which of the following media to communicate with a vendor?

Web services EDI Fax Print (All of the above)

Which of the following statements concerning Web services are true?

Web services expose functionality to other applications. Web services are an essential component of enterprise systems. Web services can be used to create composite applications.

When does a credit take place?

When assets and expenses decrease When revenue and liabilities increase

Which of the following identify tasks that are scheduled to be completed in a process?

Work Lists