Question 1

Which of the following is NOT a primary component of the logistics function?

Accepted Answer

A) Planning 
B) Resource management 
C) Operations 
D) Production 
A) Planning 
B) Resource management 
C) Operations 
D) Production

Question 2

Which of the following factors influences the need to safeguard and monitor inventory movement?

Accepted Answer

A) Inconsistent or high levels of inventory movement. 
B) If the inventory is held at various locations. 
C) If a company's inventory items are difficult to differentiate. 
D) Each of the answers, A, B, and C are correct. 
A) Inconsistent or high levels of inventory movement. 
B) If the inventory is held at various locations. 
C) If a company's inventory items are difficult to differentiate. 
D) Each of the answers, A, B, and C are correct.

Question 3

This schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run.

Accepted Answer

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

Question 4

Computerization of the conversion process results in all except:

Accepted Answer

A) Automatic computation of materials requirements based on purchase orders. 
B) Timely transfer of inventories throughout the process. 
C) Automatic updating of inventory status reports. 
D) Automatic computation of materials requirements based on sales orders. 
A) Automatic computation of materials requirements based on purchase orders. 
B) Timely transfer of inventories throughout the process. 
C) Automatic updating of inventory status reports. 
D) Automatic computation of materials requirements based on sales orders.

Question 5

Earnings management is the act of misstating financial information in order to improve financial statement results.

Accepted Answer

A) True 
 B)False

Question 6

Within the planning component of the logistics function, which of the following processes is responsible for preparing bill of materials and the operations list?

Accepted Answer

A) Research and development 
B) Capital budgeting 
C) Engineering 
D) Scheduling 
A) Research and development 
B) Capital budgeting 
C) Engineering 
D) Scheduling

Question 7

If a manufacturing company's inventory of supplies consists of a large number of small items, which of the following would be considered a weakness in internal controls?

Accepted Answer

A) Supplies of relatively low value are expensed when acquired. 
B) Supplies are physically counted on a cycle basis, whereby limited counts occur quarterly and each item is counted at least once annually. 
C) The stores function is responsible for updating perpetual records whenever inventory items are moved. 
D) Perpetual records are maintained for inventory items only if they are significant in value. 
A) Supplies of relatively low value are expensed when acquired. 
B) Supplies are physically counted on a cycle basis, whereby limited counts occur quarterly and each item is counted at least once annually. 
C) The stores function is responsible for updating perpetual records whenever inventory items are moved. 
D) Perpetual records are maintained for inventory items only if they are significant in value.

Question 8

Resources required in the conversion process include materials, labor, overhead, and fixed assets.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following questions is most likely to be found on an internal control questionnaire concerning a company's conversion processes?

Accepted Answer

A) Are vendor invoices for materials purchases approved for payment by someone who is independent of the cash disbursements function? 
B) Are signed checks for materials purchased mailed promptly without being returned to the department responsible for processing the disbursement? 
C) Are approved requisitions required when materials are released from the company's warehouse into production? 
D) Are details of payments for materials balanced to the total posted to the general ledger? 
A) Are vendor invoices for materials purchases approved for payment by someone who is independent of the cash disbursements function? 
B) Are signed checks for materials purchased mailed promptly without being returned to the department responsible for processing the disbursement? 
C) Are approved requisitions required when materials are released from the company's warehouse into production? 
D) Are details of payments for materials balanced to the total posted to the general ledger?

Question 10

The three primary components of the logistics function are 1) planning, 2) production, and 3) sales.

Accepted Answer

A) True 
 B)False

Question 11

Perpetual inventory systems:

Accepted Answer

A) Record changes in inventory categories only at the end of each period. 
B) Record changes in inventory categories only when sales are made. 
C) Record changes in inventory categories whenever material is moved from one category to another. 
D) Does not address raw materials. 
A) Record changes in inventory categories only at the end of each period. 
B) Record changes in inventory categories only when sales are made. 
C) Record changes in inventory categories whenever material is moved from one category to another. 
D) Does not address raw materials.

Question 12

The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved to the warehouse or shipping area is referred to as:

Accepted Answer

A) Quality control. 
B) Shipping notice. 
C) Purchase requisition. 
D) Warehousing. 
A) Quality control. 
B) Shipping notice. 
C) Purchase requisition. 
D) Warehousing.

Question 13

This software allows engineers to work with advanced graphics at electronic work stations to create 3-D models that depict the production environment.

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 14

A system which involves recording purchases of raw materials inventory, recording all the components of work in process, and recording the total cost of sales for products completed and sold is referred to as:

Accepted Answer

A) A perpetual inventory system. 
B) The accounting information system. 
C) A periodic inventory system. 
D) None of the above. 
A) A perpetual inventory system. 
B) The accounting information system. 
C) A periodic inventory system. 
D) None of the above.

Question 15

For which of the following computerized conversion systems is Wal-Mart well known?

Accepted Answer

A) CAD/CAM 
B) MRP-II 
C) CIMs 
D) JIT
TEST BANK - CHAPTER 11 - MULTIPLE CHOICE 
A) CAD/CAM 
B) MRP-II 
C) CIMs 
D) JIT
TEST BANK - CHAPTER 11 - MULTIPLE CHOICE

Question 16

The act of misstating financial information in order to improve financial statement results is referred to as:

Accepted Answer

A) Just in time production systems. 
B) Manufacturing resource planning. 
C) Earnings management. 
D) Absorption costing. 
A) Just in time production systems. 
B) Manufacturing resource planning. 
C) Earnings management. 
D) Absorption costing.

Question 17

Within the logistics function, segregation of duties means:

Accepted Answer

A) One person should not have both inventory and accounting responsibilities. 
B) One person should not have production responsibilities over more than one station. 
C) One person should not have quality assurance responsibilities over a work station other than his own. 
D) Each person can only have one duty or function in the production function. 
A) One person should not have both inventory and accounting responsibilities. 
B) One person should not have production responsibilities over more than one station. 
C) One person should not have quality assurance responsibilities over a work station other than his own. 
D) Each person can only have one duty or function in the production function.

Question 18

Routing is the:

Accepted Answer

A) Path electronic messages follow in the inventory system. 
B) Issuance and movement of materials into the various production phases. 
C) Physical movement of materials from the point of sale to the customer. 
D) Physical movement of materials from the vendor to the inventory stores facility. 
A) Path electronic messages follow in the inventory system. 
B) Issuance and movement of materials into the various production phases. 
C) Physical movement of materials from the point of sale to the customer. 
D) Physical movement of materials from the vendor to the inventory stores facility.

Question 19

The issuance and movement of materials into the various production phases is referred to as:

Accepted Answer

A) Production scheduling process. 
B) Inventory control process. 
C) The routing process. 
D) The production orders process. 
A) Production scheduling process. 
B) Inventory control process. 
C) The routing process. 
D) The production orders process.

Question 20

Which of the following internal controls is typically associated with the maintenance of accurate inventory records?

Accepted Answer

A) Performing regular comparisons of perpetual records with recent costs of inventory items 
B) Using a just-in-time system to keep inventory levels at a minimum 
C) Performing a match of the purchase request, receiving report, and purchase order before payment is approved 
D) Using physical inventory counts as a basis for adjusting the perpetual records 
A) Performing regular comparisons of perpetual records with recent costs of inventory items 
B) Using a just-in-time system to keep inventory levels at a minimum 
C) Performing a match of the purchase request, receiving report, and purchase order before payment is approved 
D) Using physical inventory counts as a basis for adjusting the perpetual records

Which of the following is NOT a primary component of the logistics function?

Which of the following factors influences the need to safeguard and monitor inventory movement?

This schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run.

Computerization of the conversion process results in all except:

Earnings management is the act of misstating financial information in order to improve financial statement results.

Within the planning component of the logistics function, which of the following processes is responsible for preparing bill of materials and the operations list?

If a manufacturing company's inventory of supplies consists of a large number of small items, which of the following would be considered a weakness in internal controls?

Resources required in the conversion process include materials, labor, overhead, and fixed assets.

Which of the following questions is most likely to be found on an internal control questionnaire concerning a company's conversion processes?

The three primary components of the logistics function are 1) planning, 2) production, and 3) sales.

Perpetual inventory systems:

The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved to the warehouse or shipping area is referred to as:

This software allows engineers to work with advanced graphics at electronic work stations to create 3-D models that depict the production environment.

A system which involves recording purchases of raw materials inventory, recording all the components of work in process, and recording the total cost of sales for products completed and sold is referred to as:

For which of the following computerized conversion systems is Wal-Mart well known?

The act of misstating financial information in order to improve financial statement results is referred to as:

Within the logistics function, segregation of duties means:

Routing is the:

The issuance and movement of materials into the various production phases is referred to as:

Which of the following internal controls is typically associated with the maintenance of accurate inventory records?

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

Which of the following is NOT a primary component of the logistics function?

Which of the following factors influences the need to safeguard and monitor inventory movement?

This schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run.

Computerization of the conversion process results in all except:

Earnings management is the act of misstating financial information in order to improve financial statement results.

Within the planning component of the logistics function, which of the following processes is responsible for preparing bill of materials and the operations list?

If a manufacturing company's inventory of supplies consists of a large number of small items, which of the following would be considered a weakness in internal controls?

Resources required in the conversion process include materials, labor, overhead, and fixed assets.

Which of the following questions is most likely to be found on an internal control questionnaire concerning a company's conversion processes?

The three primary components of the logistics function are 1) planning, 2) production, and 3) sales.

Perpetual inventory systems:

The final hub in the logistics function which involves a follow-up to production, where the products are inspected before they are moved to the warehouse or shipping area is referred to as:

This software allows engineers to work with advanced graphics at electronic work stations to create 3-D models that depict the production environment.

A system which involves recording purchases of raw materials inventory, recording all the components of work in process, and recording the total cost of sales for products completed and sold is referred to as:

For which of the following computerized conversion systems is Wal-Mart well known?

The act of misstating financial information in order to improve financial statement results is referred to as:

Within the logistics function, segregation of duties means:

Routing is the:

The issuance and movement of materials into the various production phases is referred to as:

Which of the following internal controls is typically associated with the maintenance of accurate inventory records?

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