Exam 11: The Conversion Business Process

A Raw Materials Requisition in the conversion cycle is a commitment event whereby a designated employee commits to the production supervisor to transfer materials from the materials warehouse to the production floor.

If a person wants to know what kind of finished good a production order is scheduled to produce and when the production is scheduled to occur, what relationship should that person examine? (List the relationship name, the entities that participate in the relationship, and the business process in which the relationship exists.)

What pair of entities are likely to participate in a conversion cycle Custody relationship?

The Production Order is the commitment to an economic increment event that will increase the Finished Goods resource.

Stockflow Consume relationships represent decreases of resources that get partially used up in economic decrement events.

Assembling, growing, excavating, harvesting, and cleaning are examples of some of the more general activities in which business process?

The value chain component representing the conversion cycle of a manufacturer usually includes multiple resource inflows.

Create a "generic" REA business process level model (without cardinalities) in either grammar or diagram format to represent the conversion business process for a manufacturer of high volume, low cost inventory items identified at the type level, whose manufacturing process includes both labor and machine operations.

The economic increment event Production Run in the conversion cycle component of an REA enterprise value chain diagram usually results in a corresponding resource flow of finished goods from the conversion cycle to the revenue cycle.

Which business process typically includes an event called Material Issuance?

What two synonyms for conversion are often used to label the conversion business process?

Inputs to the conversion process in a company's value chain are usually made available by

Which economic event typically involves no external agents?

To determine whether any material issuances were not first requisitioned, one should focus on the Fulfillment relationship in the conversion process.

What is the relationship between two conversion cycle commitment events?

The document in the conversion process that represents the list of all components and their quantities required to produce a finished good (i.e. the document that contains the same data as is captured in the relationship between Raw Material and Finished Good in the REA ontology) is called the

In the conversion business process, what underlying activity does the production run or work-in-process job represent?

Is a company that manufactures paperclips and thumbtacks more likely to use job order costing or process costing? Why?

Linkage relationships are typically included in business process level models of all cycles except the conversion cycle because the conversion cycle does not involve external agents.

On which entity or relationship should one focus to answer the question of when the most recent material requisition occurred?