Question 1

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 2

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 3

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.

Question 4

Engineering is responsible for:

Accepted Answer

A) Designing the product while operations is responsible the bill of materials and the operations list. 
B) Designing the plant and equipment used in manufacturing. 
C) Is responsible for the procurement of production equipment. 
D) Designing the product and creating the bill of materials and the operations list. 
A) Designing the product while operations is responsible the bill of materials and the operations list. 
B) Designing the plant and equipment used in manufacturing. 
C) Is responsible for the procurement of production equipment. 
D) Designing the product and creating the bill of materials and the operations list.

Question 5

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 6

Manpower displacement through automation:

Accepted Answer

A) Is considered a benefit through cost/benefit analysis. 
B) Should be a concern of management. 
C) Is the goal of proper engineering. 
D) Seldom results in termination of employees. 
A) Is considered a benefit through cost/benefit analysis. 
B) Should be a concern of management. 
C) Is the goal of proper engineering. 
D) Seldom results in termination of employees.

Question 7

The operations list is the:

Accepted Answer

A) Schedule of production for the day, week, or month as specified by the company. 
B) Document of instructions utilized to assemble a product. 
C) Form that specifies the components of a product. 
D) Designing of the product and creating the bill of materials. 
A) Schedule of production for the day, week, or month as specified by the company. 
B) Document of instructions utilized to assemble a product. 
C) Form that specifies the components of a product. 
D) Designing of the product and creating the bill of materials.

Question 8

Select the true statement.

Accepted Answer

A) Computer-aided manufacturing CAM) requires computer-aided design. 
B) Computer-aided design is always two dimensional. 
C) Computer-aided design may be three dimensional. 
D) Computer-aided design requires additional manpower during assembly. 
A) Computer-aided manufacturing CAM) requires computer-aided design. 
B) Computer-aided design is always two dimensional. 
C) Computer-aided design may be three dimensional. 
D) Computer-aided design requires additional manpower during assembly.

Question 9

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 10

When additional procedures are necessary to bring a defective product up to its required specifications, this is referred to as:

Accepted Answer

A) Rework. 
B) Scrap. 
C) Work-in-process. 
D) Variance reporting. 
A) Rework. 
B) Scrap. 
C) Work-in-process. 
D) Variance reporting.

Question 11

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 12

MRP stands for Management Resource Projections.

Accepted Answer

A) True 
 B)False

Question 13

The operations component of the logistics function has which of the following elements?

Accepted Answer

A) Maintenance and control. 
B) Production. 
C) Inventory control. 
D) Capital budgeting. 
A) Maintenance and control. 
B) Production. 
C) Inventory control. 
D) Capital budgeting.

Question 14

Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the end of the period.

Accepted Answer

A) True 
 B)False

Question 15

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.
TEST BANK - CHAPTER 11- TRUE / FALSE 
A) Encouraging ethical conduct is unnecessary. 
B) Effectiveness is not improved. 
C) Risk of fraud tends to increase. 
D) Proper stewardship of assets increases.
TEST BANK - CHAPTER 11- TRUE / FALSE

Question 16

Which of the following is NOT a responsibility given to the individuals making purchases for the company?

Accepted Answer

A) Purchasing raw materials for production. 
B) Specifying the order and sequence of payments to vendors. 
C) Selecting vendors. 
D) Specifying the quantities to be ordered. 
A) Purchasing raw materials for production. 
B) Specifying the order and sequence of payments to vendors. 
C) Selecting vendors. 
D) Specifying the quantities to be ordered.

Question 17

Maintenance and control is concerned with maintaining the capital resources used to support production, including production facilities and other fixed assets.

Accepted Answer

A) True 
 B)False

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

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 20

Physical inventory counts should only include:

Accepted Answer

A) Finished goods. 
B) Finished goods and raw materials. 
C) Finished goods and work-in-process. 
D) Raw materials, work-in-process, and finished goods. 
A) Finished goods. 
B) Finished goods and raw materials. 
C) Finished goods and work-in-process. 
D) Raw materials, work-in-process, and finished goods.

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

Capital budgeting:

The bill of materials is the:

Engineering is responsible for:

Inventory status reports are:

Manpower displacement through automation:

The operations list is the:

Select the true statement.

Which of the following processes focuses on product improvement?

When additional procedures are necessary to bring a defective product up to its required specifications, this is referred to as:

A production schedule:

MRP stands for Management Resource Projections.

The operations component of the logistics function has which of the following elements?

Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the end of the period.

When the proper tone of corporate governance is in place:

Which of the following is NOT a responsibility given to the individuals making purchases for the company?

Maintenance and control is concerned with maintaining the capital resources used to support production, including production facilities and other fixed assets.

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

Variances represent the differences between:

Physical inventory counts should only include:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 11: Conversion Processes and Controls

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

Capital budgeting:

The bill of materials is the:

Engineering is responsible for:

Inventory status reports are:

Manpower displacement through automation:

The operations list is the:

Select the true statement.

Which of the following processes focuses on product improvement?

When additional procedures are necessary to bring a defective product up to its required specifications, this is referred to as:

A production schedule:

MRP stands for Management Resource Projections.

The operations component of the logistics function has which of the following elements?

Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the end of the period.

When the proper tone of corporate governance is in place:

Which of the following is NOT a responsibility given to the individuals making purchases for the company?

Maintenance and control is concerned with maintaining the capital resources used to support production, including production facilities and other fixed assets.

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

Variances represent the differences between:

Physical inventory counts should only include:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters