Question 1

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 2

Periodic 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) May not reflect current inventory levels 
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) May not reflect current inventory levels

Question 3

Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?

Accepted Answer

A) The economic order quantity (EOQ) 
B) Material resource planning (MRP) 
C) First-in, first-out (FIFO) 
D) Just-in-time (JIT) 
A) The economic order quantity (EOQ) 
B) Material resource planning (MRP) 
C) First-in, first-out (FIFO) 
D) Just-in-time (JIT)

Question 4

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 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 are considered productive activities

Question 5

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 6

Operations may be performed by all of the following except:

Accepted Answer

A) Continuous processing of homogeneous products 
B) Batch processing 
C) Custom, made-to-order processing 
D) Each of the above is a valid form of operations 
A) Continuous processing of homogeneous products 
B) Batch processing 
C) Custom, made-to-order processing 
D) Each of the above is a valid form of operations

Question 7

Production orders:

Accepted Answer

A) Outline the specific timing required for sales orders 
B) Authorize production activities for a particular need or order 
C) Are forecasts of needs based on known and anticipated sales 
D) Are issued by the engineering department to correct product deficiency issues 
A) Outline the specific timing required for sales orders 
B) Authorize production activities for a particular need or order 
C) Are forecasts of needs based on known and anticipated sales 
D) Are issued by the engineering department to correct product deficiency issues

Question 8

A production schedule:

Accepted Answer

A) Does not contain requirements due to sales forecasts 
B) Does not contain information from the bill of materials 
C) Contains information from the operations list 
D) Are issued by the maintenance and control department 
A) Does not contain requirements due to sales forecasts 
B) Does not contain information from the bill of materials 
C) Contains information from the operations list 
D) Are issued by the maintenance and control department

Question 9

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 10

One inventory control function that is important to the conversion process is the determination of _______ _______ ______, or the most efficient quantity of products to purchase.

Accepted Answer

A) Economic purchase amount 
B) Economic order quantities 
C) Materials resource quantities 
D) Resource purchase quantities 
A) Economic purchase amount 
B) Economic order quantities 
C) Materials resource quantities 
D) Resource purchase quantities

Question 11

The planning component of the logistics function has all of the following elements except:

Accepted Answer

A) Maintenance and control 
B) Engineering 
C) Scheduling 
D) Capital budgeting 
A) Maintenance and control 
B) Engineering 
C) Scheduling 
D) Capital budgeting

Question 12

The process that is concerned with maintaining the capital resources used to support production is referred to as:

Accepted Answer

A) The production schedule 
B) Production orders 
C) Maintenance and control 
D) The human resources process 
A) The production schedule 
B) Production orders 
C) Maintenance and control 
D) The human resources process

Question 13

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 14

Inventory status reports are:

Accepted Answer

A) Generated only for raw materials 
B) Only generated for finished goods 
C) Prepared at various stages of the production process 
D) Only generated for work in process 
A) Generated only for raw materials 
B) Only generated for finished goods 
C) Prepared at various stages of the production process 
D) Only generated for work in process

Question 15

A company's conversion processes includes all of the following except:

Accepted Answer

A) Materials 
B) Office supplies 
C) Labor 
D) Overhead 
A) Materials 
B) Office supplies 
C) Labor 
D) Overhead

Question 16

When the proper tone of corporate governance is in place:

Accepted Answer

A) Encouraging ethical conduct is unnecessary. 
B) Effectiveness is not improved. 
C) Risk of fraud tends to increase. 
D) Proper stewardship of assets increases. 
A) Encouraging ethical conduct is unnecessary. 
B) Effectiveness is not improved. 
C) Risk of fraud tends to increase. 
D) Proper stewardship of assets increases.

Question 17

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 18

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 19

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 is 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 is correct

Question 20

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)

When absorption costing is used:

Periodic inventory systems:

Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?

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

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:

Operations may be performed by all of the following except:

Production orders:

A production schedule:

Economic order quantity (EOQ) is a function:

One inventory control function that is important to the conversion process is the determination of ___ _ ____, or the most efficient quantity of products to purchase.

The planning component of the logistics function has all of the following elements except:

The process that is concerned with maintaining the capital resources used to support production is referred to as:

Rework refers to:

Inventory status reports are:

A company's conversion processes includes all of the following except:

When the proper tone of corporate governance is in place:

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

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

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

When absorption costing is used:

Periodic inventory systems:

Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?

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

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:

Operations may be performed by all of the following except:

Production orders:

A production schedule:

Economic order quantity (EOQ) is a function:

One inventory control function that is important to the conversion process is the determination of _______ _______ ______, or the most efficient quantity of products to purchase.

The planning component of the logistics function has all of the following elements except:

The process that is concerned with maintaining the capital resources used to support production is referred to as:

Rework refers to:

Inventory status reports are:

A company's conversion processes includes all of the following except:

When the proper tone of corporate governance is in place:

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

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

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

One inventory control function that is important to the conversion process is the determination of ___ _ ____, or the most efficient quantity of products to purchase.