Question 1

Absorption costing involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 2

_____________ integrates all of the conversion processes to allow for minimal disruptions due to reporting requirements or inventory movement issues.

Accepted Answer

A) Computer-integrated manufacturing systems CIMs) 
B) Computer aided design CA
D)  
C) Material resource planning MRP) 
D) Computer aided manufacturing CAM) 
A) Computer-integrated manufacturing systems CIMs) 
B) Computer aided design CA
D)  
C) Material resource planning MRP) 
D) Computer aided manufacturing CAM)

Question 3

Economic order quantity EOQ) is a function:

Accepted Answer

A) Of the purchasing customer or client. 
B) Of the sales force to provide the purchasing customer or client with the greatest value. 
C) Of the responsibility of engineering through the operations list. 
D) Associated with inventory control. 
A) Of the purchasing customer or client. 
B) Of the sales force to provide the purchasing customer or client with the greatest value. 
C) Of the responsibility of engineering through the operations list. 
D) Associated with inventory control.

Question 4

The responsibility for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process is assigned to the:

Accepted Answer

A) Production schedule department. 
B) Inventory control department. 
C) Maintenance and control department. 
D) Human resources department. 
A) Production schedule department. 
B) Inventory control department. 
C) Maintenance and control department. 
D) Human resources department.

Question 5

Physical controls include all but:

Accepted Answer

A) Fences and alarm systems. 
B) Security guards. 
C) High tech security tools. 
D) Each of the answers, A, B, and C are correct. 
A) Fences and alarm systems. 
B) Security guards. 
C) High tech security tools. 
D) Each of the answers, A, B, and C are correct.

Question 6

Segregation of duties is accomplished by which of the following?

Accepted Answer

A) Accounting personnel having restricted access to physical inventory. 
B) Warehouse personnel signing all documents related to material movements. 
C) Production personnel restricted to one manufacturing station at all times. 
D) None of the above. 
A) Accounting personnel having restricted access to physical inventory. 
B) Warehouse personnel signing all documents related to material movements. 
C) Production personnel restricted to one manufacturing station at all times. 
D) None of the above.

Question 7

Just-in-time JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items.

Accepted Answer

A) True 
 B)False

Question 8

Rework refers to:

Accepted Answer

A) Generating a better quote for a customer. 
B) Overhaul of a manufacturing machine. 
C) Additional procedures to bring a product up to specifications. 
D) Parts that are beyond repair at any cost. 
A) Generating a better quote for a customer. 
B) Overhaul of a manufacturing machine. 
C) Additional procedures to bring a product up to specifications. 
D) Parts that are beyond repair at any cost.

Question 9

Which of the following activities is an inventory control activity?

Accepted Answer

A) Engineering 
B) Maintenance 
C) Routing 
D) Quality control 
A) Engineering 
B) Maintenance 
C) Routing 
D) Quality control

Question 10

The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the:

Accepted Answer

A) Production schedule. 
B) Production orders. 
C) Maintenance and control process. 
D) Human resources process. 
A) Production schedule. 
B) Production orders. 
C) Maintenance and control process. 
D) Human resources process.

Question 11

Which of the following involves managing the holding area for finished goods awaiting sale?

Accepted Answer

A) Purchase orders 
B) Shipping notices 
C) Purchase requisitions 
D) Inventory warehousing 
A) Purchase orders 
B) Shipping notices 
C) Purchase requisitions 
D) Inventory warehousing

Question 12

_________________ involves the automated scheduling of production orders and movement of materials in the production process.

Accepted Answer

A) Computer-integrated manufacturing systems CIMs) 
B) Computer aided design CA
D)  
C) Material resource planning MRP) 
D) Computer aided manufacturing CAM) 
A) Computer-integrated manufacturing systems CIMs) 
B) Computer aided design CA
D)  
C) Material resource planning MRP) 
D) Computer aided manufacturing CAM)

Question 13

The major function within the conversion process is the:

Accepted Answer

A) Sales order function. 
B) Sales forecast function. 
C) Logistics function. 
D) Reporting function. 
A) Sales order function. 
B) Sales forecast function. 
C) Logistics function. 
D) Reporting function.

Question 14

Variances:

Accepted Answer

A) Represent the differences between actual costs and the standard costs applied. 
B) Represent the difference between design specifications and production results. 
C) Represent flaws in the production results. 
D) Each of the answers, A, B, and C are correct. 
A) Represent the differences between actual costs and the standard costs applied. 
B) Represent the difference between design specifications and production results. 
C) Represent flaws in the production results. 
D) Each of the answers, A, B, and C are correct.

Question 15

The term "operations" is commonly used to refer to:

Accepted Answer

A) The main function of the business. 
B) Any function of the business which generates revenues. 
C) Only those functions of the business accomplished by the operations department. 
D) Only those functions which move inventory through the production cycle. 
A) The main function of the business. 
B) Any function of the business which generates revenues. 
C) Only those functions of the business accomplished by the operations department. 
D) Only those functions which move inventory through the production cycle.

Question 16

The responsible for managing the placement and development of sufficient qualified personnel which includes hiring and training workers as well as maintaining records of their performance is the task of the:

Accepted Answer

A) Production schedule department. 
B) Production orders department. 
C) Maintenance and control department. 
D) Human resources department. 
A) Production schedule department. 
B) Production orders department. 
C) Maintenance and control department. 
D) Human resources department.

Question 17

Standard costs are expected costs based on projections of a product's required resources.

Accepted Answer

A) True 
 B)False

Question 18

Complete, up-to-date, and accurate documentation on production orders is needed to support the conversion process.

Accepted Answer

A) True 
 B)False

Question 19

A bill of materials lists both physical items and skill requirements needed to construct an item of inventory.

Accepted Answer

A) True 
 B)False

Question 20

Routing is the issuance and movement of materials through the sales process.

Accepted Answer

A) True 
 B)False

Absorption costing involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold.

_____________ integrates all of the conversion processes to allow for minimal disruptions due to reporting requirements or inventory movement issues.

Economic order quantity EOQ) is a function:

The responsibility for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process is assigned to the:

Physical controls include all but:

Segregation of duties is accomplished by which of the following?

Just-in-time JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items.

Rework refers to:

Which of the following activities is an inventory control activity?

The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the:

Which of the following involves managing the holding area for finished goods awaiting sale?

_________________ involves the automated scheduling of production orders and movement of materials in the production process.

The major function within the conversion process is the:

Variances:

The term "operations" is commonly used to refer to:

The responsible for managing the placement and development of sufficient qualified personnel which includes hiring and training workers as well as maintaining records of their performance is the task of the:

Standard costs are expected costs based on projections of a product's required resources.

Complete, up-to-date, and accurate documentation on production orders is needed to support the conversion process.

A bill of materials lists both physical items and skill requirements needed to construct an item of inventory.

Routing is the issuance and movement of materials through the sales process.

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

Absorption costing involves the inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold.

_____________ integrates all of the conversion processes to allow for minimal disruptions due to reporting requirements or inventory movement issues.

Economic order quantity EOQ) is a function:

The responsibility for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process is assigned to the:

Physical controls include all but:

Segregation of duties is accomplished by which of the following?

Just-in-time JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items.

Rework refers to:

Which of the following activities is an inventory control activity?

The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the:

Which of the following involves managing the holding area for finished goods awaiting sale?

_________________ involves the automated scheduling of production orders and movement of materials in the production process.

The major function within the conversion process is the:

Variances:

The term "operations" is commonly used to refer to:

The responsible for managing the placement and development of sufficient qualified personnel which includes hiring and training workers as well as maintaining records of their performance is the task of the:

Standard costs are expected costs based on projections of a product's required resources.

Complete, up-to-date, and accurate documentation on production orders is needed to support the conversion process.

A bill of materials lists both physical items and skill requirements needed to construct an item of inventory.

Routing is the issuance and movement of materials through the sales process.

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