Integrated Business Processes with ERP Systems - Chapter 1

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

True

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

False

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

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

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

True

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

False

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?

Silo Effect

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 modern organizations is the functional structure. True False

True

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

True

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

True

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

True

Which term represents a set of tasks or activities that produce desired outcomes? A) Business Process B) Trigger C) Outcome D) None of the above

A

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 order to other parts of the organization C) Tracks the order D) Notifies the customer

A

Which process focuses on people within an organization and includes functions such as recruiting, hiring, training, and benefits management? A) Human Capital Management B) Project Management C) Financial Accounting D) Management Accounting or Controlling

A

Which process involves the actual creation of the products? A) Production Process B) Material Planning C) Procurement Process D) Fulfillment Process

A

Which process tracks the financial impact of process steps with the goal of meeting legal reporting requirements? A) Financial Accounting B) Human Capital Management C) Project Management D) Management Accounting or Controlling

A

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

A

What is the first step of the production process? A) Authorize Production B) Request Production C) Create Product D) Issue Raw Materials

B

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 B) Project Management C) Financial Accounting D) Management Accounting or Controlling

B

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) Lifecycle Data Management C) Production Process D) Fulfillment Process

B

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? A) Material Planning B) Procurement Process C) Production Process D) Fulfillment Process

B

_____ enables an organization to optimize its product development process, from design to A) Business Planning B) Lifecycle Data Management C) Project Management D) Material Planning

B

Which of the following are steps within a generic business process of an organization A) Payment B) Trigger C) Shipment D) Outcome

B D

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

Cross-Functional

What is the final step of the procurement process? A) Invoice B) Purchase Requisition C) Purchase Order D) Payment

D

What steps are involved in the accounting portion of the procurement process? A) Receiving the materials and the invoice B) Creating and sending the purchase order C) Creating the purchase requisition and receiving the materials D) Receiving the invoice and sending payment

D

Which of the following is concerned with the storage and movement of materials A) Business Planning B) Silo Effect C) Material Planning D) Inventory and warehouse management

D

Which of the following statements about business process 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

D

_______ 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

D

Which system supports business process end to end?

Enterprise System

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

True

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

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