Question 1

The final hub in the logistics function is:

Accepted Answer

A) Packaging. 
B) Quality control. 
C) Sales. 
D) Shipping to the customer. 
A) Packaging. 
B) Quality control. 
C) Sales. 
D) Shipping to the customer. B

Question 2

Even if a firm is a service or sales firm it may conduct some sort of manufacturing operation.

Accepted Answer

A) True 
 B)False  True

Question 3

The form that specifies the components of a product, including descriptions and quantities of materials and parts needed is the:

Accepted Answer

A) Operations list. 
B) Bill of materials. 
C) Engineering. 
D) Capital budgeting. 
A) Operations list. 
B) Bill of materials. 
C) Engineering. 
D) Capital budgeting. B

Question 4

Standard costs are the:

Accepted Answer

A) Responsibility of production accountants. 
B) Expected costs based on required resources. 
C) Costs normally paid for a component. 
D) Prices the customer is expected to pay upon sale. 
A) Responsibility of production accountants. 
B) Expected costs based on required resources. 
C) Costs normally paid for a component. 
D) Prices the customer is expected to pay upon sale.

Question 5

Which of the following is not considered a benefit of using computerized conversion systems?

Accepted Answer

A) Automatic computation of materials requirements 
B) Increased sales and cost of sales 
C) Increased efficiency and flexibility 
D) Early error detection and increased accuracy 
A) Automatic computation of materials requirements 
B) Increased sales and cost of sales 
C) Increased efficiency and flexibility 
D) Early error detection and increased accuracy

Question 6

Which of the following correctly lists activities within the conversion process in chronological order?

Accepted Answer

A) Prepare bill of materials, initiate production, inspect goods, prepare purchase requisition 
B) Prepare purchase requisition, prepare bill of materials, initiate production, inspect goods 
C) Inspect goods, prepare bill of materials, initiate production, prepare purchase requisition 
D) Prepare bill of materials, prepare purchase requisition, initiate production, inspect goods 
A) Prepare bill of materials, initiate production, inspect goods, prepare purchase requisition 
B) Prepare purchase requisition, prepare bill of materials, initiate production, inspect goods 
C) Inspect goods, prepare bill of materials, initiate production, prepare purchase requisition 
D) Prepare bill of materials, prepare purchase requisition, initiate production, inspect goods

Question 7

The _______ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Accepted Answer

A) Raw materials 
B) Inventory warehousing 
C) Inventory stores 
D) Quality control 
A) Raw materials 
B) Inventory warehousing 
C) Inventory stores 
D) Quality control

Question 8

Scheduling:

Accepted Answer

A) Plans the timing for acquisition of fixed assets. 
B) Does not take into account machine breakdowns. 
C) Takes into consideration all the open sales orders. 
D) Does not take inventory needs. 
A) Plans the timing for acquisition of fixed assets. 
B) Does not take into account machine breakdowns. 
C) Takes into consideration all the open sales orders. 
D) Does not take inventory needs.

Question 9

The preparation of production orders and routing slips on prenumbered forms minimizes the related risk of:

Accepted Answer

A) Omitted transactions 
B) Incorrect amounts 
C) Duplicate payroll transactions 
D) Invalid orders 
A) Omitted transactions 
B) Incorrect amounts 
C) Duplicate payroll transactions 
D) Invalid orders

Question 10

The research and development effort is part of the planning process rather than the operations process.

Accepted Answer

A) True 
 B)False

Question 11

When absorption costing is used:

Accepted Answer

A) Production inefficiencies are immediately identified. 
B) Production to absorb the cost of waste and yield factors not considered in other costing methods. 
C) Both variable and fixed costs are included in unit costs. 
D) The transfer of values to the income statement through inventory accounts. 
A) Production inefficiencies are immediately identified. 
B) Production to absorb the cost of waste and yield factors not considered in other costing methods. 
C) Both variable and fixed costs are included in unit costs. 
D) The transfer of values to the income statement through inventory accounts.

Question 12

The term conversion processes is often used synonymously with:

Accepted Answer

A) Operations. 
B) Production. 
C) Manufacturing. 
D) All of the above. 
A) Operations. 
B) Production. 
C) Manufacturing. 
D) All of the above.

Question 13

The process that plans the timing for production activities is referred to as:

Accepted Answer

A) Operations list. 
B) Bill of materials. 
C) Scheduling. 
D) Capital budgeting. 
A) Operations list. 
B) Bill of materials. 
C) Scheduling. 
D) Capital budgeting.

Question 14

Which of the following activities is not part of the planning component of the logistics function?

Accepted Answer

A) Research and development 
B) Capital budgeting 
C) Human resource management 
D) Scheduling 
A) Research and development 
B) Capital budgeting 
C) Human resource management 
D) Scheduling

Question 15

A firm expects to sell 1000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

Accepted Answer

A) 10 units 
B) 224 units 
C) 317 units 
D) 448 units 
A) 10 units 
B) 224 units 
C) 317 units 
D) 448 units

Question 16

The department responsible for training production personnel is the:

Accepted Answer

A) Production department. 
B) Human resources department. 
C) Engineering department. 
D) None of the above. 
A) Production department. 
B) Human resources department. 
C) Engineering department. 
D) None of the above.

Question 17

The component of the logistics function that directs the focus of operations is the:

Accepted Answer

A) Operations component. 
B) Resource management component. 
C) Planning component. 
D) The sales component. 
A) Operations component. 
B) Resource management component. 
C) Planning component. 
D) The sales component.

Question 18

Which of the following company activities would NOT be considered a productive activity?

Accepted Answer

A) The manufacture of automobiles. 
B) The treatment of patients in a medical facility. 
C) Providing consulting services. 
D) All of the above, A, B, and C, are considered productive activities. 
A) The manufacture of automobiles. 
B) The treatment of patients in a medical facility. 
C) Providing consulting services. 
D) All of the above, A, B, and C, are considered productive activities.

Question 19

Select the false completion to the statement which starts "A computer-based conversion process:"

Accepted Answer

A) Requires less data input into the system. 
B) Automatically prepares financial accounting entries and cost accounting reports. 
C) Yields greater benefits in terms of workforce efficiency. 
D) Permits more systematic scheduling which allows for greater flexibility. 
A) Requires less data input into the system. 
B) Automatically prepares financial accounting entries and cost accounting reports. 
C) Yields greater benefits in terms of workforce efficiency. 
D) Permits more systematic scheduling which allows for greater flexibility.

Question 20

Because conversion processes involve the physical movement of inventory throughout the operating facility and these movements are normally accomplished by material handling personnel the burden of sufficient internal controls is not required.

Accepted Answer

A) True 
 B)False

The final hub in the logistics function is:

Even if a firm is a service or sales firm it may conduct some sort of manufacturing operation.

The form that specifies the components of a product, including descriptions and quantities of materials and parts needed is the:

Standard costs are the:

Which of the following is not considered a benefit of using computerized conversion systems?

Which of the following correctly lists activities within the conversion process in chronological order?

The _______ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Scheduling:

The preparation of production orders and routing slips on prenumbered forms minimizes the related risk of:

The research and development effort is part of the planning process rather than the operations process.

When absorption costing is used:

The term conversion processes is often used synonymously with:

The process that plans the timing for production activities is referred to as:

Which of the following activities is not part of the planning component of the logistics function?

A firm expects to sell 1000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

The department responsible for training production personnel is the:

The component of the logistics function that directs the focus of operations is the:

Which of the following company activities would NOT be considered a productive activity?

Select the false completion to the statement which starts "A computer-based conversion process:"

Because conversion processes involve the physical movement of inventory throughout the operating facility and these movements are normally accomplished by material handling personnel the burden of sufficient internal controls is not required.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 11: Conversion Processes and Controls

The final hub in the logistics function is:

Even if a firm is a service or sales firm it may conduct some sort of manufacturing operation.

The form that specifies the components of a product, including descriptions and quantities of materials and parts needed is the:

Standard costs are the:

Which of the following is not considered a benefit of using computerized conversion systems?

Which of the following correctly lists activities within the conversion process in chronological order?

The _______ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

Scheduling:

The preparation of production orders and routing slips on prenumbered forms minimizes the related risk of:

The research and development effort is part of the planning process rather than the operations process.

When absorption costing is used:

The term conversion processes is often used synonymously with:

The process that plans the timing for production activities is referred to as:

Which of the following activities is not part of the planning component of the logistics function?

A firm expects to sell 1000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

The department responsible for training production personnel is the:

The component of the logistics function that directs the focus of operations is the:

Which of the following company activities would NOT be considered a productive activity?

Select the false completion to the statement which starts "A computer-based conversion process:"

Because conversion processes involve the physical movement of inventory throughout the operating facility and these movements are normally accomplished by material handling personnel the burden of sufficient internal controls is not required.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters