IS 680- Practice Exam attempt 2

Which of the following goods movement will always generate an accounting document? SLoc to SLoc Transfer Posting Plant to Plant within a Company Code Transfer Requirement

Plant to Plant within a Company Code

A movement of materials between two plants in different company codes is called a company code-to-company code transfer. T or F

TRUE

Which of the following is a request to change the status of the material? Status request list Notice for change Posting change notice Material change list Change request

posting change notice

A confirmation of the work completed in production includes data on... updates: material planning documents are updated operations: which operations were completed consumption: raw material and semi-finished goods consumed storage: storage location of finished goods

operations: which operations were completed

Component assignment i.e assigning material components to operations in the routing, is performed in the routing; components not exilictly assigned are ________. Are consumed during the last operation Assigned to the first operation Not used in production Expensed during the Confirmation stage Considered as PRTs

Assigned to the 1st operation

Inventory management is primarily concerned with... A) goods receipt B) goods movement C) goods issue (D) material master

B) goods movement

Management accounting allows firms to _________________? report the financial health of the firm to external stakeholders. manage, allocate and track costs. create balance sheet and profit and loss statements. track and record financial impact of operations on the firm.

B) manage, allocate & track costs (the book mentions costs a lot...) D) track & record financial impact of operations on the firm (maybe)

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

FALSE

A technically complete status for a production order means that even though the main material is complete, other production processes may be needed to complete smaller components of the material. T or F

FALSE

Expenses are what the company owes to others, including money owed to vendors and loans from financial institutions. T or F

FALSE

Fixed time elements represent the time needed to produce one unit of material. T or F

FALSE

In time-phased planning, materials are ordered when the stock level reaches a predetermined level known as the reorder point.. T or F

FALSE

Materials cannot be moved from one CC to another because each CC uses different set of books. T or F

FALSE

Semifinished goods are typically purchased from vendors. T or F

FALSE

Variable time elements are independent of how many units of material are produced. T or F

FALSE

Identify the step in the procurement process for which a material document is created. Create requisition Transfer order Goods receipt Goods issue STO

Good receipts

What operation in the routing is sometimes necessary to prepare materials for use in production? Backflushing Material staging Recall Reservation Confirmation

Material Staging

Which of the following are correct regarding Master Data Records in an ERP system? (2 Correct Answers)

(B) Master data info is organized into views C) Master data are created centrally & can be used by all applications & all authorized users

When a production order extends over periods when firms complete certain accounting steps to update the data in financial statement called periodic processing or period-end closing. Periodic processing includes... auditing order settlement capacities are updated material planning updates

**overhead allocation** work-in-process determination **order settlement**

In an integrated process, which of the following statements apply to the goods issue step of the internal procurement process? (3 possible correct answers) A. The material document created includes two line items for each location B. The status of the materials in the receiving plant is "stock in transit" C. Both material and FI documents are created D. A material document is created, but FI documents are not E. The status of the materials in the receiving plant is "unrestricted use"

> The material document created includes 2 line items for each location > The status of the materials in the receiving plant is "stock in transit" > Both material & FI documents are created

Which of the following does NOT apply when linking warehouses to storage locations? -Not all storage locations in a plant must be linked to a warehouse. -A warehouse cannot be linked to storage locations across multiple plants. -A warehouse can be linked to storage locations across multiple plants. -A warehouse must be linked to at least one storage location.

A warehouse CANNOT be linked to storage locations across multiple plants.

Which of the following account assignment categories are used when the company acquires a fixed asset?

ASSET

What accounts are updated when a customer payment is recorded? A. Revenue and cost of goods sold accounts B. Customer account and bank accounts C. GR/IR Account and Accounts receivable D. reconciliation account

B. Customer account & bank accounts

The shipping process begins with which of the following? A. When an inquiry is created. B. When a delivery document is created. C. When goods issue is posted. D. When a transfer requirement is created

B. When a delivery document is created

The enterprise system can be configured to automatically complete steps like goods issue when goods receipt against production occurs using a technique called.. Available to Promise (ATP) Capacity splits Material Resource Planning (MRP) Back-flushing

Backflushing

Which of the following is NOT a step in the MRP procedure? Scheduling Check planning file Bins calculation Lot size calculation

Bins calculation

Financial statements can be generated from which of the following? Country-specific COA Operative COA Both operative and country-specific COAs Neither operative nor country-specific COAs

Both operative & country-specific COAs

Which of the following are possible procurement types? A) Time-phased planning or fixed lot (B) Vendor managed or PO managed C) External or None D) lot-to-lot or fixed

C) External or None

Which of the following activity/step is related to the procurement process? A) Locate Materials B) Receive Payment C) Receive Materials (D) Issue Materials E) Authorize Production

C) Receive Materials

Master data relevant to warehouse management view in the material master includes data: A) lead times such as goods receipt time, issue time & placement time (B) about units, size & weight C) used in defining stock placement & removal strategies D) needed for picking strategies

C. Data used in defining stock placement and removal strategies Also: -Basic data -Data regarding the storage bins where the materials will be stored

A purchase order in procurement is... A. created before a purchase requisition. B. an order received from a customer. C. obligation to purchase from the vendor. D. required for producing material.

C. obligation to purchase from the vendor

A plant can only be assigned to: A. no more than three purchasing organizations B. a reference purchasing organization C. one or more purchasing organizations D. one purchasing organization

C. one or more purchasing organizations

The consumption mode specified in the material master determines that manner in which PIR (Planned Independent Requirement) and CIR (Customer Independent Requirement) interact to determine material requirements. When planning is done with consumption,.... PIR are planned using consumption-based planning CIR reduces the quantity of PIR CIR adds to the quantity of PIR If PIR > CIR, then PIR = CIR

CIR reduces the quantity of PIR

Consider the following scenario, then choose which one of the options below corresponds to the level of CIRs and PIRs after consumption. Before consumption: CIRs = 50 and PIRs = 50 CIRs: 50, PIRs: 0 CIRs: 0, PIRs: 50 CIRs: 0, PIRs: 0 CIRs: 50, PIRs: 100 CIRs: 50, PIRs: 50

CIRs: 50, PIRs: 0

What step in the production process is used to enter data in to the ERP system when the operations needed to produce a materials are completed? Confirmation Order complete Production note Production record

Confirmation

In addition to material and financial accounting documents, which of the following are generated when goods-receipt is posted against a production order? Production document Time sheets Shop floor documents Controlling document

Controlling document

Shelves, stacks, and aisles are examples of: Storage locations. Storage sections. Coordinate systems for bin addresses. Storage identifiers. Storage areas.

Coordinate systems for bin addresses.

Due to a shortfall of materials needed to fill a customer order, a company has decided to acquire the materials from another plant. What is the likely next step? Initiate shipping to customer Create a sales order Create a delivery document Post a goods receipt Create an STO Create a purchase order

Create an STO

A storage bin may store more than one material, materials with similar characteristics are identified in the storage bin as... A) units B) item type (C) material groups D) quants

D) Quants

A purchasing organization in the enterprise can be responsible for... A) only 1 plant B) none, 1 or more plants (C) 1 or more plants D) plants across the entire enterprise

D) plants across the entire enterprise

A customer-material info record relates to master data specific to: A. one sales area and one material B. one sales area and one customer C. one delivering plant and one material D. one customer and one material

D. 1 customer & 1 material

Which of the following are organizational levels relevant to the Sales and Distribution process? A. Purchasing organization, purchasing group, delivering plant B. Sales organization, sales area and customer C. Shipping point, storage location and storage bin D. Sales area, storage location and shipping point

D. Sales area, storage location & shipping point

Pricing conditions that determine the cost of purchasing the material from a specific vendor are based on... A. delivery times, tolerances, quantities and conditions B. contracts and scheduling agreements. C. material master, vendor master and outline purchase agreements. D. prices, discounts, taxes and freight

D. prices, discounts, taxes & freight

Calculate the financial impact of a goods issue posting based on the following data. Procurement type: Internal Materials: Pens Quantity shipped: 100 Valuation price at the receiving plant (for one pen): $2.30 Valuation price at the sending plant (for one pen): $2.40

Debit & credit to the inventory account for $240.00

One of the steps of the inventory management process related to procurement is post goods issue. T or F

FALSE

What is the final step of the procurement process? Purchase Requisition Purchase Order None of the above Invoice Payment

PAYMENT

Which of the following is used to implement multiple ledgers and use each ledger for different purposes? Sub-ledger Financial accounting document Subsidiary ledger Parallel Accounting None of the choices

Parallel Accounting

**A Bill of Material is defined for a material at which of the following organizational levels** Company Code Client Division Plant

Plant

Material type determines the department or function-specific data that must be maintained for the material in material master. For which of the following functions must data for Finished Goods must be maintained. Client Sales Accounts Payable Procurement

SALES

At what organizational level is a sales document created? Plant Division Sales Organization Company code Sales area

Sales area

A time ticket is used to record the amount of time required to complete various operations. T or F

TRUE

Asset accounting is concerned with tracking financial data related to assets such as machinery and cars. T or F

TRUE

Customer master data are used in the fulfillment process for generating an invoice for materials or services.. T or F

TRUE

Distribution channels can be used to differentiate between wholesale, retail, and Internet sales strategies. T or F

TRUE

MRP type specifies the production control technique used in planning. T or F

TRUE

Material master data can be defined differently for different organizational levels. T or F

TRUE

Shelf storage is an example of a storage type. T or F

TRUE

The planning result report aggregates quantities for MRP elements to make it easier to view the overall picture. T or F

TRUE

Transaction data reflect the consequences of executing process steps. T or F

TRUE

Transfer requirements can be created manually as well as automatically. T or F

TRUE

Which of the following represents the document used to plan the movement of materials into and out of bins in a warehouse? Transfer request Transfer order Transfer list Transfer requirement Transfer plan

Transfer requirement

Which of the following activities/steps are not related to the production process? -Create product -Request production -Issue Materials -Authorize Production -Transfer requirements

Transfer requirements

The planning table is best defined as... A brainstorming session for selecting the most appropriate plan An interface used to enter all the operational plans An independent tool used for parallel execution of the SOP process A spreadsheet-like tool used to complete the tasks in SOP An interface for transferring data into SOP

a spreadsheet like tool used to complete the tasks in SOP

Management accounting (MA) or controlling (CO) is internally focused and provides information an organization needs to effectively manage various organizational processes. Consequently management accounting or CO reports: -record financial data during process execution -are defined by laws and regulations -are used to communicate with investors -are based on management needs

are based on management needs

Organizations go through the material planning process is essentially to

balance demand for materials with supply of materials

Work Center data used to specify how an operation or sub-operation is scheduled, how costs will be calculated and how operations are confirmed once completed at Work Center are known as control keys value keys standard value keys posting keys

control keys

When using a sell-from-stock strategy, the availability check procedure determines availability of material based on... current inventory current inventory and planned receipts current inventory and safety stock current inventory and purchase orders

current inventory & planned receipts

Replenishment lead time is the difference between the time... -between demand and replenishment -safety stock level is reached and the time order for the material is placed -from when the order is placed and delivery for the material is received -from the time goods are received to when they are stored

from when the order is placed & delivery for the material is received

Instead of detailed transaction data, information systems capture and store specified transaction data in an aggregated and summarized form in ________________.

information structures

Intellectual property posessed by the marketing department of an organizationa is a kind of ________________ asset.

intangible

Assets may be acquired either externally or through ... enterprise asset management internal processes customer orders vendors

internal processes

Which of the following is NOT a production planning strategy?

make-to-build

The supply for materials is largely maintained by other processes such as ... procurement and production production and fulfillment operating supplies and production procurement and fulfillment

procurement & production

A list of operations that are required to accomplish a task for which a Work Center can be used in production is called a product routing MRP check list work list

product routing

A distribution chain is a unique combination of a: -distribution channel, division and sales organization -sales organization and distribution channel -sales organization and division -sales organization, delivering plan and shipping point

sales organization and distribution channel

Unplanned issue of goods from inventory can occur when materials are issued for... -scrap, sampling and internal consumption -depreciation, maintenance and storage -quality management, production variance and material planning -testing, costing and measurement

scrap, sampling & internal consumption

Types of materials that will usually have dependent requirements are... semi-finished goods and raw materials raw materials and non-stock material finished goods and semi-finished goods trading goods and stock material

semi-finished goods & raw materials

A storage type is a division of a warehouse based on the characteristics of the: Dimensions and profitability. Price, space, and type. Space, materials, and activity. Usage, price, and dimensions. Weight, width, and type

space, materials, & activity

What are some of the key stock types (status) in purchasing, based on usability of materials?

unrestricted use, in-quality inspection & blocked

In the integrated processes discussed in the text, after a transfer order related to fulfillment has been confirmed, which of the following steps is most likely to occur next? A) Customer payment B) Good issue (C) Creating a transfer requirement D) Customer billing E) Goods receipt

~ NOT (C) Creating a transfer requirement ~ B. Good issue