Question 1

The bill of materials is the:

Accepted Answer

A) Cost of raw materials purchased from a vendor 
B) Document of instructions utilized to assemble a product 
C) Form that specifies the components of a product 
D) Designing the product and creating the bill of materials and the operations list 
A) Cost of raw materials purchased from a vendor 
B) Document of instructions utilized to assemble a product 
C) Form that specifies the components of a product 
D) Designing the product and creating the bill of materials and the operations list C

Question 2

Cost-benefit can be defined as:

Accepted Answer

A) Gross profit after sales are made 
B) Cameras and security guards to protect construction materials in a restricted access warehouse 
C) Verifying inventory levels at the end of each working shift 
D) Alarm systems and vaults for fine jewelry inventories 
A) Gross profit after sales are made 
B) Cameras and security guards to protect construction materials in a restricted access warehouse 
C) Verifying inventory levels at the end of each working shift 
D) Alarm systems and vaults for fine jewelry inventories D

Question 3

The goal of a physical inventory reconciliation is to

Accepted Answer

A) Determine the quantity of inventory sold 
B) Compare the physical count with the perpetual records 
C) Compare the physical count with the periodic records 
D) Determine the quantity of inventory in process 
A) Determine the quantity of inventory sold 
B) Compare the physical count with the perpetual records 
C) Compare the physical count with the periodic records 
D) Determine the quantity of inventory in process B

Question 4

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

Question 5

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 6

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 7

Capital budgeting:

Accepted Answer

A) Is responsible for the issuance of stocks and bonds to finance operations 
B) Plans the capital resources needed to support operations 
C) Is responsible for the procurement of production materials 
D) Is not a function of a company once established and functioning 
A) Is responsible for the issuance of stocks and bonds to finance operations 
B) Plans the capital resources needed to support operations 
C) Is responsible for the procurement of production materials 
D) Is not a function of a company once established and functioning

Question 8

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

Accepted Answer

A) Logistics 
B) Planning 
C) Reporting 
D) Sales forecast 
A) Logistics 
B) Planning 
C) Reporting 
D) Sales forecast

Question 9

The conversion process is initiated when the company recognizes:

Accepted Answer

A) The receipt of raw materials 
B) The shipment of finished goods to customers 
C) The need to conduct operations 
D) None of the above 
A) The receipt of raw materials 
B) The shipment of finished goods to customers 
C) The need to conduct operations 
D) None of the above

Question 10

In inventory systems, when the actual quantity and the accounting records quantity are compared it is referred to as:

Accepted Answer

A) Perpetual inventory 
B) Inventory resolution 
C) The physical inventory reconciliation 
D) Periodic inventory 
A) Perpetual inventory 
B) Inventory resolution 
C) The physical inventory reconciliation 
D) Periodic inventory

Question 11

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 12

Variances represent the differences between:

Accepted Answer

A) Actual costs and the standard costs applied 
B) Raw materials ordered and raw materials received 
C) The sales targets and sales accomplishments 
D) Actual quantity on hand and quantity according to the inventory system 
A) Actual costs and the standard costs applied 
B) Raw materials ordered and raw materials received 
C) The sales targets and sales accomplishments 
D) Actual quantity on hand and quantity according to the inventory system

Question 13

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 14

Perpetual inventory systems:

Accepted Answer

A) Are only updated at the end of each fiscal period 
B) Are concerned only with finished goods 
C) Are not concerned with raw materials 
D) Involve every level of inventory necessary for production 
A) Are only updated at the end of each fiscal period 
B) Are concerned only with finished goods 
C) Are not concerned with raw materials 
D) Involve every level of inventory necessary for production

Question 15

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 16

The expected cost based on projections of a product's required resources which includes direct materials, direct labor and overhead is referred to as:

Accepted Answer

A) Quality control costs 
B) Sales order cost 
C) Rework costs 
D) Standard costs 
A) Quality control costs 
B) Sales order cost 
C) Rework costs 
D) Standard costs

Question 17

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 18

Which of the following statements concerning an operations list is true?

Accepted Answer

A) It is an engineering document that describes the chain of events within a company's conversion process. 
B) It is an engineering document that specifies the descriptions and quantities of component parts within a product. 
C) It is a capital budgeting document that describes the chain of events within a company's conversion process. 
D) It is a capital budgeting document that specifies the descriptions and quantities of component parts within a product. 
A) It is an engineering document that describes the chain of events within a company's conversion process. 
B) It is an engineering document that specifies the descriptions and quantities of component parts within a product. 
C) It is a capital budgeting document that describes the chain of events within a company's conversion process. 
D) It is a capital budgeting document that specifies the descriptions and quantities of component parts within a product.

Question 19

Just-in-time (JIT) production systems:

Accepted Answer

A) Require close communications with the engineering department 
B) Do not require close communications with vendors 
C) Require closely controlled inventory levels 
D) Do not require additional monitoring 
A) Require close communications with the engineering department 
B) Do not require close communications with vendors 
C) Require closely controlled inventory levels 
D) Do not require additional monitoring

Question 20

Overhead includes all of the following except:

Accepted Answer

A) Various other expenses necessary to run the operating facility 
B) The president's salary 
C) Indirect labor 
D) Indirect materials 
A) Various other expenses necessary to run the operating facility 
B) The president's salary 
C) Indirect labor 
D) Indirect materials

The bill of materials is the:

Cost-benefit can be defined as:

The goal of a physical inventory reconciliation is to

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

Which of the following activities is an inventory control activity?

Computerization of the conversion process results in all except:

Capital budgeting:

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

The conversion process is initiated when the company recognizes:

In inventory systems, when the actual quantity and the accounting records quantity are compared it is referred to as:

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

Variances represent the differences between:

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:

Perpetual inventory systems:

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

The expected cost based on projections of a product's required resources which includes direct materials, direct labor and overhead is referred to as:

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:

Which of the following statements concerning an operations list is true?

Just-in-time (JIT) production systems:

Overhead includes all of the following except:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

Exam 11: Conversion Processes and Controls

The bill of materials is the:

Cost-benefit can be defined as:

The goal of a physical inventory reconciliation is to

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

Which of the following activities is an inventory control activity?

Computerization of the conversion process results in all except:

Capital budgeting:

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

The conversion process is initiated when the company recognizes:

In inventory systems, when the actual quantity and the accounting records quantity are compared it is referred to as:

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

Variances represent the differences between:

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:

Perpetual inventory systems:

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

The expected cost based on projections of a product's required resources which includes direct materials, direct labor and overhead is referred to as:

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:

Which of the following statements concerning an operations list is true?

Just-in-time (JIT) production systems:

Overhead includes all of the following except:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Auditing Information Technology-Based Processes

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters