Chapter 4 - Fulfillment Process Study Questions

In a manual process, what document is used to track the progress of the fulfillment process?

Sales order

Which steps from the fulfillment process have a financial impact on the company receiving the order from the customer?

Send shipment and receive customer payment

Which of the following account are affected by a shipment of goods to a customer? a. A/P b. A/R c. COGS d. Finished goods inventory e. bank account

c. COGS AND d. Finished goods inventory

Which of the following information is NOT typically found in a picking document? a. quantity b. material number c. price d. FOB Point

c. Price

Which of the following data is NOT typically found in a customer purchase order? a. material number b. quantity c. storage location d. price

c. storage location

When using an ES, the person responsible for preparing invoices can retrieve a list of orders that need to be billed. Such a list is called ...

A billing due list

Which of the following data is NOT typically found in a sales order? a. requested delivery date b. actual delivery date c. material number d. shipment terms

b. actual delivery date

Typically, what information would you find in a packing list?

Bill-to address Ship-to address Quantity

Typically, what information would you find in an invoice?

Bill-to address Ship-to address Quantity Price

Typically, what information would you find in a picking document?

Bill-to address Ship-to address Quantity Requested delivery date

Typically, what information would you find in a purchase order?

Bill-to address Ship-to address Requested delivery date

The fulfillment process often begins when a ____________ sends an inquiry.

Customer

When using an ES, the person responsible for preparing shipments can retrieve a list of orders that need to be shipped. Such a list is called ...

Delivery due list

In a manual process, what document is an itemized list of the materials sent or the services provided to the customer, with the cost of the items plus discounts, taxes, shipping, and other charges?

Invoice

In a manual process, what document accompanies the shipment and specifies the items and quantities shipped?

Packing list

In a manual process, what document is created by the warehouse when they receive a sales order?

Picking document

In a manual process, what document is a commitment by the customer to purchase the materials?

Purchase order

Typically, what information would you find in a quotation?

Quantity Price

Payment terms are declared by the seller during the _____________ step, while payment terms are declared by the buyer at the ______________ step.

Quotation Purchase Order

Which steps from the fulfillment process DO NOT HAVE a financial impact on the company receiving the order from the customer?

Receive customer inquiry, send quotation, and receive customer purchase order

What is the correct order of the fulfillment process?

Receive customer inquiry/ create and send quotation Receive customer purchase order and create sales order Prepare and send shipment Create and send invoice Receive payment

In the fulfillment process, which department creates the sales order?

Sales Department

In the fulfillment process, a picking document includes what information?

The storage location of the materials to be picked

The only time a financial impact is made on the income statement in the fulfillment process is when you send the shipment. T or F?

True

When using an ES, it is very difficult to obtain information about the status of a customer order. T or F?

True

When you send the shipment, two transactions happen that affect the financial impact of the fulfillment process. T or F?

True

What are examples of instance-level information relevant to the fulfillment process?

Was the invoice paid? If so, when? What was the total of the sales order? How long did it take to send the shipment after creating a sales order? When did we send the goods? What was the total of the invoice? Was the invoice sent? If so, when? What was the total of the payment?

___________________ involves taking a standard or base model of a product and then configuring it to meet the customer's special needs by adding either special options or add-on parts. a. Configure-to-order b. Sell-from-stock

a. Configure-to-order

Which of the following documents are associated with the fulfillment process? a. Picking document b. Packing list c. Bill of materials d. Customer master e. Customer invoice

a. Picking document b. Packing list AND e. Customer invoice

Which of the following are variations of the basic fulfillment process? a. quote to cash b. produce to pay c. requisition to pay d. inquiry to cash e. plan to produce

a. Quote to cash AND d. inquiry to cash

In the fulfillment process, which department prepares and sends the quotation? a. Sales b. Purchasing c. Accounting d. Production

a. Sales

___________________ involves fulfilling customer orders directly from the company's inventory and or finished goods. a. Sell-from-stock b. Configure-to-order

a. Sell-from-stock

The accounts receivable account goes up when a ____________ is sent. a. Shipment b. Invoice

a. Shipment

Which of the following are examples of process-level information relevant to the fulfillment process? a. Which customers are prompt and which ones are habitually late in sending the payment? b. Which materials are sold most frequently? c. Which materials are produced most often? d. Which vendor do we buy from most frequently? e. What is the average time between creating a sales order and sending the shipment?

a. Which customers are prompt and which ones are habitually late in sending the payment? b. Which materials are sold most frequently? AND e. What is the average time between creating a sales order and sending the shipment?

When using an ES, much of the data needed to create a customer invoice is ____________. a. automatically obtained from data previously stored in the system b. manually entered

a. automatically obtained from data previously stored in the system

Which of the following information is NOT typically found in a quotation? a. requested delivery date b. quantity c. price d. terms of delivery

a. requested delivery date

When creating customer invoices, the person responsible can retrieve a list of orders that need to be acted on. This list is called ___________. a. An order due list b. A billing due list

b. A billing due list

In the fulfillment process, which department prepares and sends the invoice? a. Sales b. Accounting c. Warehouse d. Production

b. Accounting

The COGS account goes up when a shipment is ____________. a. Prepared b. Sent

b. Sent

In the fulfillment process, which department receives payment? a. Sales b. Purchasing c. Accounting d. Warehouse

d. Accounting

In the fulfillment process, which department prepares and send the shipment? a. Sales b. Purchasing c. Accounting d. Warehouse

d. Warehouse

Which of the following information is NOT typically found in a packing list? a. Ship to: b. quantity c. Bill to: d. invoice date

d. invoice date

Which of the following information is NOT typically found in an invoice? a. Ship to: b. quantity c. price d. picked quantity

d. picked quantity