Question 1

The process that plans the timing for production activities is referred to as:

Accepted Answer

A) Operations list 
B) Bill of materials 
C) Scheduling 
D) Capital budgeting 
A) Operations list 
B) Bill of materials 
C) Scheduling 
D) Capital budgeting

Question 2

IT systems permit or allow all of the following except:

Accepted Answer

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

Question 3

Which of the following processes focuses on product improvement?

Accepted Answer

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

Question 4

Variances:

Accepted Answer

A) Are only investigated if they are unfavorable 
B) Are always investigated 
C) Will always result in the improvement of the logistics function 
D) Understanding the cause of both favorable and unfavorable variances can be important 
A) Are only investigated if they are unfavorable 
B) Are always investigated 
C) Will always result in the improvement of the logistics function 
D) Understanding the cause of both favorable and unfavorable variances can be important

Question 5

Which of the following terms relates to the control of materials being held for future production?

Accepted Answer

A) Routing 
B) Work-in-process 
C) Stores 
D) Warehousing 
A) Routing 
B) Work-in-process 
C) Stores 
D) Warehousing

Question 6

The operations list is the:

Accepted Answer

A) Schedule of production for the day, week, or month as specified by the company. 
B) Document that includes each operation to be performed, including the location of the activity and resources required to produce  a product. 
C) Form that specifies the components of a product. 
D) Outlines the design of the product and the creation of the bill of materials. 
A) Schedule of production for the day, week, or month as specified by the company. 
B) Document that includes each operation to be performed, including the location of the activity and resources required to produce  a product. 
C) Form that specifies the components of a product. 
D) Outlines the design of the product and the creation of the bill of materials.

Question 7

Select the false completion to the statement which starts "A computer-based conversion process..."

Accepted Answer

A) Requires less data input into the system 
B) Automatically prepares financial accounting entries and cost accounting reports 
C) Yields greater benefits in terms of workforce efficiency 
D) Permits more systematic scheduling which allows for greater flexibility 
A) Requires less data input into the system 
B) Automatically prepares financial accounting entries and cost accounting reports 
C) Yields greater benefits in terms of workforce efficiency 
D) Permits more systematic scheduling which allows for greater flexibility

Question 8

A firm expects to sell 1,000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

Accepted Answer

A) 10 units 
B) 224 units 
C) 317 units 
D) 448 units 
A) 10 units 
B) 224 units 
C) 317 units 
D) 448 units

Question 9

Which of the following activities in the conversion process does NOT require express authorization?

Accepted Answer

A) Initiation of production orders 
B) Issuance of materials into the production process 
C) Transfer of finished goods to the warehouse or shipping areas 
D) Initiation of a sales order 
A) Initiation of production orders 
B) Issuance of materials into the production process 
C) Transfer of finished goods to the warehouse or shipping areas 
D) Initiation of a sales order

Question 10

Earnings management:

Accepted Answer

A) Is the act of misstating financial information 
B) Is the goal of cost/benefit relationships 
C) Accomplished through the proper management of inventory and sales 
D) Is an ethical goal of management 
A) Is the act of misstating financial information 
B) Is the goal of cost/benefit relationships 
C) Accomplished through the proper management of inventory and sales 
D) Is an ethical goal of management

Question 11

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 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

All of the following are classifications of inventory EXCEPT:

Accepted Answer

A) Raw materials 
B) Finished goods 
C) Sold goods 
D) Work-in-process 
A) Raw materials 
B) Finished goods 
C) Sold goods 
D) Work-in-process

Question 14

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 15

Select the true statement from the choices below.

Accepted Answer

A) Inventory stores and warehousing are both concerned with raw materials. 
B) Neither inventory stores nor warehousing are concerned with raw materials. 
C) Inventory stores is concerned with raw materials and warehousing is concerned with finished goods. 
D) Inventory stores is concerned with finished goods and warehousing is concerned with raw materials. 
A) Inventory stores and warehousing are both concerned with raw materials. 
B) Neither inventory stores nor warehousing are concerned with raw materials. 
C) Inventory stores is concerned with raw materials and warehousing is concerned with finished goods. 
D) Inventory stores is concerned with finished goods and warehousing is concerned with raw materials.

Question 16

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

Accepted Answer

A) Maintenance and control 
B) Human resources 
C) Inventory control 
D) Capital budgeting 
A) Maintenance and control 
B) Human resources 
C) Inventory control 
D) Capital budgeting

Question 17

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

Accepted Answer

A) Operations component 
B) Resource management component 
C) Planning component 
D) The sales component 
A) Operations component 
B) Resource management component 
C) Planning component 
D) The sales component

Question 18

The process of logical, systematic flow of resources throughout the organization 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 19

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?

Accepted Answer

A) The routing slip 
B) The shipping notice 
C) The purchase requisition 
D) The sales order 
A) The routing slip 
B) The shipping notice 
C) The purchase requisition 
D) The sales order

Question 20

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 
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 
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?

The process that plans the timing for production activities is referred to as:

IT systems permit or allow all of the following except:

Which of the following processes focuses on product improvement?

Variances:

Which of the following terms relates to the control of materials being held for future production?

The operations list is the:

Select the false completion to the statement which starts "A computer-based conversion process..."

A firm expects to sell 1,000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

Which of the following activities in the conversion process does NOT require express authorization?

Earnings management:

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

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

All of the following are classifications of inventory EXCEPT:

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

Select the true statement from the choices below.

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

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

The process of logical, systematic flow of resources throughout the organization is referred to as:

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?

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

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 process that plans the timing for production activities is referred to as:

IT systems permit or allow all of the following except:

Which of the following processes focuses on product improvement?

Variances:

Which of the following terms relates to the control of materials being held for future production?

The operations list is the:

Select the false completion to the statement which starts "A computer-based conversion process..."

A firm expects to sell 1,000 units of its best-selling product in the coming year.Ordering costs for this product are $100 per order, and carrying costs are $2 per unit.Compute the optimum order size, using the EOQ model.

Which of the following activities in the conversion process does NOT require express authorization?

Earnings management:

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

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

All of the following are classifications of inventory EXCEPT:

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

Select the true statement from the choices below.

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

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

The process of logical, systematic flow of resources throughout the organization is referred to as:

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?

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

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