Exam 7: Conversion Processes

Which of the following is the most likely foreign key for the Bill of Materials table? A. Prod_auth_ID B. Product_ID C. Issue_Sequence D. Material_description

When creating a UML class diagram to support the conversion process, which of the following approaches provides a way to meet both accounting and general management information requirements? A. The COSO framework. B. BPMN guidelines. C. A star schema. D. The REA framework.

The primary key of the Production Authorization table would be posted in the Production Steps table as a foreign key.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes? A. The employee records the completion of a job and updates finished goods. B. Each production authorization is related to one product. C. Each product is related to one production authorization. D. One employee can authorize production multiple times.

Which of the following business rules illustrates a proper implementation of internal control? A. The employee that inspects the work can't be the same employee that discards defective items. B. The employee that performs part of the conversion work can't also perform other work in the conversion process. C. The employee that authorizes production can't be the same employee that issues raw materials. D. The person that receives the finished items can't also place them into their assigned warehouse location.

In the conversion process, indirect labor is first recorded to which of the following accounts? A. Finished Goods. B. Raw Material Inventory. C. Work-in-Process Inventory. D. Manufacturing Overhead.

Review the following diagram. Which answer provides the best interpretation Bill of Materials class and its associations? A. A material might not be included in any Bills of Materials. B. The Bill of Materials determines which product should be produced. C. Bills of Materials act as a type image class that specifies the details of the implied association between products and materials. D. A Bill of Materials may be associated with many different products.

The link between the Production Plan and Materials tables would be implemented as a linking table.

Business rules describe appropriate actions to take based on process conditions.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and the Labor Operations classes? A. Each employee that creates a Material Issue must record at least one Labor Operation. B. At least one production worker and one supervisor must perform labor operations for each production run. C. The association between Labor Operations and Employees will be implemented in the database with a Type Image class. D. An employee may not perform any labor operations.

A labor plan class would establish standard overhead allocation rates.

Which of the following not one of the reasons that the conversion process is typically considered more complicated than the sales and collections and the purchases and payments processes? E. The conversion process has greater record-keeping requirements. F. Many companies do not have a conversion process. G. The sophistication of the conversion process may vary greatly among different companies. H. All three of the other answers are reasons that the conversion process is more complicated.

Conversion labor costs become part of cost of goods sold.

Which of the following is not a basic activity in the conversion process? A. Issue raw material B. Perform work and account for labor C. Ship products to stores D. Authorize production

Gateways can direct sequence flow to support looping.

The link between the Products and Production Plan tables would be implemented as a linking table.

In a BPMN activity diagram, what does the following symbol represent? A. A looping collapsed subprocess. B. An exception event. C. A connection made to another swimlane in the process. D. An expanded subprocess.

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Materials and the Materials Issue classes? A. A Material Issue must include at least one material, but may include many materials. B. When a material is issued, it is transferred into the Material Issue class. C. Each material is included in at least one material issue, but may be included in many material issues. D. A material issue might not include a material.

The primary key of the Employees table would be posted in the Production Steps table as a foreign key.

Review the following BPMN activity diagram. In this conversion process, the quantities of raw materials to be released is calculated based on which information? A. Work-in-Process. B. The Bills of Materials. C. The quantities of raw materials purchased. D. Economic order quantities.