Integrated Business Processes With ERP Systems 1st Edition by Simha R.Magal Test Bank

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Integrated Business Processes With ERP Systems 1st Edition by Simha R.Magal Test Bank

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WITH ANSWERS
Integrated Business Processes With ERP Systems 1st Edition by Simha R.Magal Test Bank

chapter 5

Package Title: Test bank

Course Title: The Fulfillment Process

 

Question type: Multiple Answers

 

 

  1. Which of the following key organizational elements are unique to the fulfillment process?
    1. Sales area
    2. Credit control area
    3. Client
    4. Shipping point
    5. Plant

Answer: a, b, d

       

Difficulty: Moderate

Section Reference: Organizational Data

 

  1. Which of the following are the typical distribution channels?
    1. Wholesale
    2. Sales area
    3. Online
    4. Warehouse
    5. Retail

Answer: a, c, e

       

Difficulty: Moderate

Section Reference: Organizational Data Distribution Channel

 

  1. Which of the following are characteristics of a wholesale channel?
    1. It does not include sales taxes in calculating prices
    2. It distributes directly to consumers
    3. It requires a minimum volume of purchase
    4. It offers volume discounts
    5. It may designate a specific plant or plants from which deliveries are made

 

Answer: a, c, d, e

 

Difficulty: Moderate

Section Reference: Organizational Data Distribution Channel

                       

  1. A sales area is a unique combination of which of the following elements?
    1. Client
    2. Company code
    3. Sales organization
    4. Distribution channel
    5. Division

 

Answer: c, d, e

 

Difficulty: Moderate

Section Reference: Organizational Data Sales Area

 

  1. Which of the following can serve as an example of a plant ?
    1. A manufacturing facility
    2. An office building
    3. A shipping point
    4. A distribution channel
    5. A storage facility

 

Answer: a, b, e

 

Difficulty: Moderate

Section Reference: Organizational Data Plant

 

  1. Material master data relevant to the fulfillment processes are defined for which of the following organizational levels?
    1. Client
    2. Distribution channel
    3. Plant
    4. Sales organization
    5. Shipping point

 

Answer: a, b, c, d

 

Difficulty: Moderate

Section Reference: Master Data Material Master

 

  1. Material master data are grouped into views. Which of the following views are used in fulfillment?
    1. Basic data
    2. Client data
    3. Sales organization data
    4. Warehouse data
    5. Sales plant data

 

Answer: a, c, e

 

Difficulty: Moderate

Section Reference: Master Data Material Master

 

  1. Which one of the following are examples of sales units?
    1. Cartons
    2. Data
    3. Crates
    4. Barrels
    5. Cases

 

Answer: a, c, d, e

 

Difficulty: Easy

Section Reference: Master Data Material Master

 

  1. The three segments into which the data in the customer master are divided are ________
    1. Financial accounting data
    2. Sales area data
    3. Management ainancial data
    4. General data
    5. Basic data

 

Answer: a, b, d

 

Difficulty: Moderate

Section Reference: Master Data Customer Master

 

  1. Which of the following departments in an organization are responsible for data in a customer master?
    1. HR
    2. Accounting
    3. Sales
    4. Information Technology
    5. Purchasing

 

Answer: b, c

 

Difficulty: Moderate

Section Reference: Master Data Customer Master

 

  1. What are the partner functions that customers can play in the fulfillment process?
    1. Sold-to party
    2. Bill-to party
    3. Ship-to party
    4. Receiver
    5. Payer

 

Answer: a, b, c, e

 

Difficulty: Moderate

Section Reference: Master Data Customer Master

 

 

  1. Organizational data in a sales order include which of the following?
    1. Shipping data
    2. Client
    3. Company code
    4. Sales area
    5. Purchasing organization

 

Answer: b, c, d

 

Difficulty: Difficult

Section Reference: Process Sales Order processing

 

  1. Material master data in a delivery document consist of which of the following?
    1. Material description
    2. Unit of measure
    3. Quantity
    4. Weight
    5. Billing date

 

Answer: a, b, d

 

Difficulty: Difficult

Section Reference: Process Shipping

 

  1. Organizational data in a delivery document consist of which of the following?
    1. Client
    2. Company code
    3. Quantity
    4. Schedule lines
    5. Shipping point

 

Answer: a, b, e

 

Difficulty: Difficult

Section Reference:  Process Shipping

 

  1. The customer credit management process assesses whether credit should be granted when:
    1. A sales order is created or changed
    2. Delivery is authorized or changed
    3. Invoices are created or changed
    4. The post goods issue step is performed during shipping

 

Answer: a, b, d

 

Difficulty: Moderate

Section Reference:  Credit Management Process

 

 

  1. The fulfillment process is integrated with which other processes?
    1. Asset management
    2. Project systems
    3. Production
    4. Management accounting

 

Answer: b, c, d

 

Difficulty: Moderate

Section Reference:  Integration with Other Processes

 

  1. Information structures are used to generate which of the following?
    1. User-defined analysis
    2. Flexible analysis
    3. Rigid analysis
    4. Standard analysis

 

Answer: b, d

 

Difficulty: Easy

Section Reference:  Reporting Analytics

 

  1. Which of the following statements regarding work lists are true?
    1. They identify tasks that are ready for completion.
    2. They contain a list of orders that are scheduled to be shipped by a specific date.
    3. They generate lists of documents associated with specific master data.
    4. They consist of standard and rigid analyses

 

Answer: a, b

 

Difficulty: Moderate

Section Reference:  Reporting Work Lists

 

Question type: Multiple Choice

 

 

  1. All of the following are key organizational elements in the fulfillment process except
    1. Client
    2. Company code
    3. Sales area
    4. Plant
    5. Warehouse

Answer: e

 

Difficulty: Easy

Section Reference: Organizational Data

 

 

  1. Which one of the following combinations of organizational elements is included in the definition of a sales area?
    1. Sales organization, distribution channel, division
    2. Sales organization, company code, division
    3. Client, distribution channel, division
    4. Client, plant, division
    5. Sales organization, distribution channel, plant

Answer: a

 

Difficulty: Moderate

Section Reference: Organizational Data

 

 

  1. Which of the following is NOT a typical characteristic of a wholesale channel?
    1. It does not include sales taxes in calculating prices in the US.
    2. It distributes goods directly to consumers.
    3. It requires a minimum volume of purchase.
    4. It offers volume discounts.
    5. It may designate a specific plant or plants from which deliveries are made.

Answer: b

 

Difficulty: Moderate

Section Reference: Organizational Data Distribution Channel

 

 

  1. In the fulfillment process, a plant is
    1. A manufacturing facility only
    2. A facility from which the company provides after-sales support
    3. A facility from which the company delivers only services to its customers
    4. A storage area
    5. A facility from which the company delivers products and services to its customers

Answer: e

 

Difficulty: Moderate

Section Reference: Organizational Data Plant

 

  1. All of the following are examples of a shipping point except
    1. A rail depot
    2. A loading dock
    3. A storage rack
    4. A mail room
    5. A designated group of employees

Answer: c

Difficulty: Moderate

Section Reference: Organizational Data Shipping Point

 

 

  1. All of the following are key organizational elements for which material master data are defined for the fulfillment process except
    1. Client
    2. Distribution channel
    3. Plant
    4. Sales organization
    5. Shipping point

Answer: e

 

Difficulty: Moderate

Section Reference: Master Data Material Master

 

  1. Material master data are grouped into views. Which one of the following combination of views is relevant to the fulfillment process?
    1. Basic data, sales organization data, sales plant data
    2. Basic data, company data, sales plant data
    3. Basic data, sales organization data, client data
    4. Client data, sales area data, sales plant data
    5. Basic data, sales area data, warehouse data

Answer: a

 

Difficulty: Moderate

Section Reference: Master Data Material Master

 

  1. The data in the customer master are divided into the following three segments:
    1. Plant data, accounting data, and sales area data
    2. General data, financial data, and sales zone data
    3. General data, accounting data, and shipping area data
    4. Client data, accounting data, and sales zone data
    5. General data, accounting data, and sales area data

Answer: e

 

Difficulty: Moderate

Section Reference: Master Data Customer Master

 

 

  1. Which master data do companies use to determine the prices of their products?
    1. Price comparison
    2. Pricing conditions
    3. Selling price
    4. Wholesale price
    5. Tax allowances

Answer: b

 

Difficulty: Moderate

Section Reference: Master Data Pricing Conditions

 

 

  1. Which action triggers sales order processing in the fulfillment process?
    1. Delivery of goods to the customer
    2. Receipt of goods from a vendor
    3. Receipt of a customer purchase order
    4. Receipt of payment from customer
    5. Picking goods for shipment

Answer: c

 

Difficulty: Moderate

Section Reference: Process

 

 

  1. What is the final step in the fulfillment process?
    1. Delivery of goods to the customer
    2. Receipt of payment from the customer
    3. Receipt of a customer purchase order
    4. Receipt of goods from a vendor
    5. Picking goods for shipment

Answer: b

 

Difficulty: Moderate

Section Reference: Process

 

  1. Which one of the following represents the correct order of process steps for the fulfillment process?
    1. Sales order processing , pre-sales activity, inventory sourcing, shipping, billing, payment
    2. Sales order processing, pre-sales activity, inventory sourcing, billing, billing, payment
    3. Pre-sales activity, payment, sales order processing, inventory sourcing, shipping, billing
    4. Pre-sales activity, sales order processing, shipping, billing, inventory sourcing, payment
    5. Pre-sales activity, sales order processing, inventory sourcing, shipping, billing, payment

Answer: e

 

Difficulty: Difficult

Section Reference: Process

 

  1. Which of the following types of data is NOT included in a quotation?
    1. Material master
    2. Customer-material info records
    3. Customer master
    4. Vendor master
    5. Pricing conditions

Answer: d

 

Difficulty: Difficult

Section Reference: Process Pre-sales Activity

 

  1. Which of the following types of data is NOT included in a billing document?
    1. Data from the customer master
    2. Data from the sales order
    3. Data from the delivery document
    4. Organizational data
    5. Pricing conditions

Answer: e

 

Difficulty: Difficult

Section Reference: Process Billing

 

  1. The shipping step concludes with _________
    1. Goods issue
    2. Picking
    3. Packing
    4. Goods receipt
    5. Goods delivery

Answer: a

 

Difficulty: Difficult

Section Reference: Process Shipping

 

  1. Which of the following organizational levels is NOT relevant to the fulfillment process?
    1. Purchasing organization
    2. Shipping point
    3. Storage location
    4. Sales area
    5. Plant

Answer: a

 

Difficulty: Moderate

Section Reference: Organizational Data

 

 

  1. Which of the following organizational levels is associated with a companys product line?
    1. Sales organization
    2. Sales area
    3. Distribution channel
    4. Sales group
    5. Division

Answer: e

 

Difficulty: Moderate

Section Reference: Organizational Data Division

 

 

  1. Which of the following organizational levels is associated with the method used to distribute materials to a customer?
    1. Sales organization
    2. Sales area
    3. Distribution channel
    4. Sales group
    5. Division

Answer: c

 

Difficulty: Easy

Section Reference: Organizational Data Distribution Channel

 

  1. Output conditions include all of the following types of data except
    1. Output type
    2. Transmission medium
    3. Transmission time
    4. Output mode

Answer: d

 

Difficulty: Moderate

Section Reference: Master Data Output Conditions

 

  1. Which of the following statements regarding customer master data is NOT true?
    1. They contain data that are needed to make postings in FI.
    2. They are valid for a specific sales area.
    3. They include data that are stored at the client level.
    4. They include data that are needed to make postings in CO.

Answer: d

 

Difficulty: Difficult

Section Reference: Master Data Customer Master

 

  1. Which of the following statements regarding the fulfillment process is NOT true?
    1. One delivery document can be created from multiple sales order documents.
    2. An accounting document is created when a goods issue is posted.
    3. A sales order must be created with reference to a quotation.
    4. A quotation can generate multiple sales orders.

Answer: c

 

Difficulty: Difficult

Section Reference: Process Shipping, Process Sales Order processing

 

  1. Which of the following is NOT a key step in the fulfillment process?
    1. Sales order processing
    2. Inventory sourcing
    3. Shipping
    4. Invoice verification
    5. Pre-sales activity

Answer: d

 

Difficulty: Difficult

Section Reference: Process Pre-sales Activity, Process Shipping, Process Sales Order processing

 

  1. Pre-sales activity includes all of the following except
    1. Customer inquiries
    2. Quotations
    3. Mailing campaigns
    4. Customer purchase orders
    5. Tracking customer contacts

Answer: d

 

Difficulty: Difficult

Section Reference: Process Pre-sales Activity

 

  1. What document is NOT created during the billing step of the fulfillment process if profitability analysis is active?
    1. An invoice
    2. An FI document
    3. A material document
    4. A CO document

Answer: c

 

Difficulty: Moderate

Section Reference: Process Billing

 

  1. Which of the following is not taken into consideration when determining a customers credit exposure?
    1. open orders
    2. scheduled deliveries
    3. open invoices
    4. current purchase orders

Answer: d

 

Difficulty: Moderate

Section Reference: Credit Management Process

 

 

  1. The fulfillment process is integrated with all of the following processes except
    1. Procurement
    2. Inventory and warehouse management
    3. Asset management
    4. Material planning

 

Answer: c

 

Difficulty: Moderate

Section Reference: Integration with Other Processes

 

  1. Which reporting options does SAP ERP system support?
    1. Online lists
    2. Work lists
    3. Analytics
    4. All of the above

Answer: d

 

Difficulty: Easy

Section Reference: Reporting

 

Question type: True or False

 

 

  1. Organizational elements essential to the fulfillment process include client, company code, sales area, and plant.

Answer: True

 

Difficulty: Easy

Section Reference: Organizational Data

 

 

  1. A company code is divided into several sales organizations, each of which is responsible for the sale and distribution of goods and services for a particular geographical area.

Answer: True

 

Difficulty: Easy

Section Reference: Organizational Data Sales organization

 

  1. A sales organization is responsible for negotiating terms and conditions of sales for a particular market.

Answer: True

 

Difficulty: Moderate

Section Reference:  Organizational Data Sales organization

 

  1. A company code must have at least two sales organizations.

Answer: False

 

Difficulty: Easy

Section Reference:  Organizational Data Sales organization

 

  1. A distribution channel is the means by which a company delivers its goods and services to its customers.

Answer: True

 

Difficulty: Easy

Section Reference:  Organizational Data Distribution Channel

 

  1. A sales organization must have at least two divisions.

Answer: False

 

Difficulty: Moderate

Section Reference:  Organizational Data Division

 

  1. A sales area can be assigned to only one company code.

Answer: True

 

Difficulty: Moderate

Section Reference:  Organizational Data Division

 

  1. In the case of products, a plant is typically an office building.

Answer: False

 

Difficulty: Easy

Section Reference:  Organizational Data Plant

 

  1. A shipping point is a location in a plant at which inbound deliveries are received.

Answer: False

 

Difficulty: Easy

Section Reference:  Organizational Data Shipping Point

 

  1. A plant must have at least one shipping point, which must be physically located in that plant.

Answer: False

 

Difficulty: Moderate

Section Reference:  Organizational Data Shipping Point

 

  1. Sales plant data include details on how the material will be shipped from the plant.

Answer: True

 

Difficulty: Moderate

Section Reference: Master Data Material Master

 

  1. Customer master data include data needed to conduct business with customers and to execute transactions that are related specifically to the fulfillment process.

Answer: True

 

Difficulty: Moderate

Section Reference: Master Data Customer Master

 

  1. A customermaterial information record is comprised of master data specific to one customer and one material.

Answer: True

 

Difficulty: Moderate

Section Reference: Master Data Customer Material Information Record

 

  1. Pre-sales activity is often triggered by a communication from a customer such as a purchase order.

Answer: False

 

Difficulty: Moderate

Section Reference: Process Pre-sales Activity

 

  1. An inquiry is a request for information regarding a potential order that the customer places with the company.

Answer: True

 

Difficulty: Moderate

Section Reference: Process Pre-sales Activity

 

  1. The final step in the fulfillment process is the receipt of payment from the customer.

Answer: True

 

Difficulty: Easy

Section Reference: Process

 

  1. Customer master data are used in the fulfillment process for generating an invoice for materials or services..

Answer: True

 

Difficulty: Easy

Section Reference: Process Billing

 

  1. In addition to the organizational data, material master data is necessary in the payment step.

Answer: False

 

Difficulty: Moderate

Section Reference: Process Payment

 

  1. Open items are items in the payment step for which payment from the customer has been received.

Answer: False

 

Difficulty: Moderate

Section Reference: Process Payment

 

  1. The fulfillment process acts as a stand-alone process and cannot be integrated with other processes within an organization.

Answer: False

 

Difficulty: Easy

Section Reference: Integration with other processes

 

  1. A sales area can be assigned to multiple company codes.

Answer: False

 

Difficulty: Easy

Section Reference: Organizational Data Sales Area

 

  1. A distribution channel can be assigned to multiple company codes.

Answer: False

 

Difficulty: Easy

Section Reference: Organizational Data Distribution Channel

 

  1. A distribution channel can be assigned to multiple sales areas

Answer: True

 

Difficulty: Easy

Section Reference: Organizational Data Distribution Channel

 

  1. A sales area can have many distribution channels.

Answer: False

 

Difficulty: Moderate

Section Reference: Organizational Data Sales Area

 

  1. Distribution channels can be used to differentiate between wholesale, retail, and Internet sales strategies.

Answer: True

 

Difficulty: Easy

Section Reference: Organizational Data Distribution Channel

 

  1. A sales organization is used to divide a market based on geographic characteristics.

Answer: True

 

Difficulty: Easy

Section Reference: Organizational Data Sales Organization

 

  1. A oneto-many relationship exists between a sales area and plants.

Answer: True

 

Difficulty: Moderate

Section Reference: Organizational Data Plant

 

  1. A customer info record is an intersection of customer data and sales data.

Answer: False

 

Difficulty: Moderate

Section Reference: Master Data Customer Material (Info) Record

 

  1. A quotation can result in multiple sales orders.

Answer: True

 

Difficulty: Difficult

Section Reference: Process Pre-sales Activity

 

  1. Multiple quotations can be combined to create one sales order.

Answer: True

 

Difficulty: Difficult

Section Reference: Process  Pre-sales Activity

 

  1. A line item in a sales order can include multiple schedule lines.

Answer: True

 

Difficulty: Difficult

Section Reference: Process   Sales Order Processing

 

  1. Multiple orders can be combined into one delivery if certain conditions are met.

Answer: True

 

Difficulty: Difficult

Section Reference: Process   Sales Order Processing

 

 

 

chapter 9

Package Title: Test bank

Course Title: Integrated Process

 

Question type: Multiple Answers

 

 

 

  1. Which of the following processes can have a controlling (CO) impact?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: b, d, e

 

Difficulty: Medium

      Section: General

 

 

  1. Which of the following processes can result in the creation of a financial (FI) document?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: b, c, d, e

 

Difficulty: Medium

Section: General

 

 

  1. Which of the following are steps in the warehouse management process?

 

  1. Create goods receipt
  2. Confirm transfer order
  3. Create stock transfer order
  4. Create transfer requirement
  5. Post goods issue

 

Answer: b, d

 

Difficulty: Medium

Section: Warehouse Management Steps Related to Procurement

 

 

 

 

 

 

 

 

 

 

  1. Which of the steps listed below are part of the fulfillment process.

 

  1. Purchase order sent to vendor
  2. Goods receipt posted
  3. Billing
  4. STO processing
  5. Sales order processing

 

Answer: c, e

 

Difficulty: Medium

Section: Fulfillment Process Initial Steps and Fulfillment Process Concluding Steps

 

 

  1. Which of the steps listed below are part of the procurement process?

 

  1. Create transfer order
  2. Create requisition
  3. Send payment
  4. Process sales order
  5. Process STO

 

Answer: b, c

 

Difficulty: Medium

Section: Procurement Process Initial Step and Procurement Process External Procurement

 

 

  1. Which of the following statements concerning the procurement process are TRUE?

 

  1. Vendor billing is one of the steps.
  2. Only one FI document is created.
  3. Goods receipt is one of the steps.
  4. The send payment step involves creation of an FI document.
  5. Two material documents are created.

 

Answer: a, c, d

 

Difficulty: Medium

Section: Procurement Process External Procurement

 

 

  1. Identify the steps in the procurement process for which an FI document is created.

 

  1. Goods receipt
  2. Goods issue
  3. Billing
  4. Purchase order
  5. Receive invoice

 

Answer: a, e

 

Difficulty: Medium

Section: Procurement Process Internal Procurement and Procurement Process External Procurement

 

 

  1. Identify the steps in the fulfillment process for which an FI document is created.

 

  1. Goods receipt
  2. Goods issue
  3. Billing
  4. Purchase order
  5. Receive invoice

 

Answer: b, c

 

Difficulty: Medium

Section: Fulfillment Process Concluding Steps

 

 

  1. The sales order processing step in the fulfillment process includes which of the following activities?

 

  1. Materials are shipped.
  2. An availability check is executed.
  3. A goods receipt is posted.
  4. A sales order is created.
  5. A goods issue is posted.

 

Answer: b, d

 

Difficulty: Medium

Section: Fulfillment Process Initial Steps

 

 

  1. In which of the following steps in the production process is a material document created?

 

  1. Goods receipt
  2. Goods issue
  3. Confirmation
  4. Request production
  5. Availability check

 

Answer: a, b

 

Difficulty: Medium

Section: Production Process Continued

 

 

  1. Which of the following are strategies for acquiring materials?

 

  1. Internally from a vendor
  2. Externally from a storage location
  3. Externally from a plant
  4. Internally from another plant
  5. Externally from a vendor

 

Answer: d, e

 

Difficulty: Easy

Section: Procurement Process Initial Steps

 

 

  1. Which of the following statements apply to the goods issue step of the internal procurement process?

 

  1. Both material and FI documents are created.
  2. A material document is created, but FI documents are not.
  3. The status of the materials in the receiving plant is stock in transit.
  4. The status of the materials in the receiving plant is unrestricted use.
  5. The material document includes two line items for each location.

 

 Answer: a, c, e

 

Difficulty: Difficult

             Section: Procurement Process Internal Procurement

 

 

  1. Which of the following statements regarding the goods receipt step of the internal procurement process are TRUE?

 

  1. Both material and FI documents are created.
  2. A material document is created, but an FI document is not.
  3. The status of the materials in the receiving plant is stock in transit.
  4. The status of the materials in the receiving plant is unrestricted use.
  5. The material document includes two line items, one for the sending location (plant) and one for the receiving location.

 

Answer: b, d

 

Difficulty: Difficult

            Section: Procurement Process Internal Procurement

 

 

  1. Which of the following statements regarding the goods receipt step of the external procurement process are TRUE?

 

  1. A goods receipt is created against an STO.
  2. This step results in both an FI and a material document.
  3. A goods receipt is created against a PO.
  4. An FI document is created, but there is no GL impact.
  5. Only one material document is created.

 

Answer: b, c, e

 

Difficulty: Medium

Section: Procurement Process External Procurement

 

 

  1. Which of the following impacts to the general ledger accounts result when a company pays a vendor invoice?

 

  1. The bank account is credited.
  2. The vendor subledger account is debited.
  3. The bank account is debited.
  4. The vendor subledger account is credited.
  5. The accounts payable reconciliation account is debited.

 

Answer: a, b, e

Difficulty: Medium

Section: Procurement Process External Procurement

 

  1. Which of the following statements regarding WM steps related to procurement are NOT TRUE?

 

  1. A transfer requirement is created.
  2. Goods are moved from storage bins to an interim storage area.
  3. Goods are moved from an interim storage area into storage bins.
  4. A transfer order is created against an STO.
  5. A PO triggers the WM process.

 

Answer: b, d, e

 

Difficulty: Medium

Section: Warehouse Management Steps Related to Procurement

 

 

  1. The shipping step involves which of the following activities?

 

  1. Creating a delivery document.
  2. Authorizing picking, packing, and goods issue.
  3. Processing a purchase order.
  4. Authorizing picking, packing, and goods receipt.
  5. Creating a transfer order.

 

 

Answer: a, b

 

Difficulty: Medium

      Section: Fulfillment Process Shipping

 

 

  1. Which of the following statements regarding WM steps related to fulfillment are TRUE?

 

  1. A transfer order is created based on a delivery document.
  2. Goods are moved from an interim storage area into storage bins.
  3. A transfer order is created against an STO.
  4. A PO triggers the WM process.
  5. Goods are moved from storage bins to an interim storage area.

 

Answer: a, e

 

Difficulty: Medium

      Section: Warehouse Management Steps Related to Fulfillment

 

 

  1. What are the GL entries when a customer invoice is generated?

 

  1. The accounts payable reconciliation account is debited.
  2. The accounts receivable reconciliation account is debited.
  3. The customer subledger account is debited.
  4. The revenue account is credited.
  5. The vendor subledger account is credited.

 

Answer: b, c, d

 

Difficulty: Medium

Section: Fulfillment Process Concluding steps

 

 

  1. Which of the following statements about an STO are NOT TRUE?

 

  1. It can trigger the fulfillment process.
  2. It can trigger the production process.
  3. A goods issue can be posted against an STO.
  4. A goods receipt can be posted against an STO.
  5. A purchase order can be posted against an STO.

 

Answer: a, e

 

Difficulty: Medium

Section: Procurement, fulfillment, production, and IWM processes

 

 

  1. Identify the GL entries that are posted when a payment is sent to a vendor.

 

  1. The vendor account is credited,
  2. The vendor account is debited.
  3. The accounts payable reconciliation account is debited.
  4. The bank account is credited.
  5. The bank account is debited.

 

Answer: b, c, d

 

Difficulty: Medium

      Section: Procurement Process External

 

 

  1. The goods receipt step in production involves which of the following GL entries?

 

  1. Finished goods inventory account is debited.
  2. The manufacturing output settlement account is credited.
  3. Finished goods inventory account is credited.
  4. The COGS account is debited.
  5. The GR/IR account is credited.

 

Answer: a, b

 

Difficulty: Medium

      Section: Production Process Continued

 

 

  1. Which of the following statements about the integrated process are TRUE?

 

  1. The process is triggered by a customer order.
  2. The fulfillment process is suspended when the needed raw materials are not available.
  3. The production process is suspended when the needed raw materials are not available.
  4. The production process continues when the finished products become available.
  5. The fulfillment process continues when the finished products become available.

 

Answer: a, c, e

 

Difficulty: Medium

Section:  General

 

 

Question type: Multiple Choice

 

  1. In a make-to-order strategy the production of finished goods or semifinished goods is most frequently triggered by a

 

  1. Sales order.
  2. Purchase order.
  3. Transfer order.
  4. Production order.
  5. Goods issue.

 

Answer: a

 

Difficulty: Easy

Section:  Learning Objectives

 

 

  1. Which one of the steps listed most likely would be the final step in the procurement process?

 

  1. Confirm transfer order
  2. Goods receipt
  3. Goods issue
  4. STO
  5. Send payment

 

Answer: e

 

Difficulty: Medium

Section: Procurement Process Internal Procurement and Procurement Process External Procurement

 

 

  1. In which of the following processes is a material document NOT created?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: a

 

Difficulty: Medium

Section: General

 

 

  1. In which of the following processes is a transfer order (TO) created?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: a

      Difficulty: Medium

Section: General

 

 

  1. After a transfer order related to fulfillment has been confirmed, which of the following steps is most likely to occur next?

 

  1. Billing
  2. Payment
  3. Creating a transfer requirement
  4. Shipping
  5. Posting a goods receipt

 

Answer: d

 

Difficulty: Medium

Section: Fulfillment Process Continued

 

 

  1. Shipping, billing, and payment are steps in which process?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: b

 

Difficulty: Medium

Section: Fulfillment Process Continued and Fulfillment Process Concluding Steps

 

 

  1. Receive invoice is a step in which process?

 

  1. Warehouse management
  2. Fulfillment
  3. Inventory management
  4. Production
  5. Procurement

 

Answer: e

 

Difficulty: Medium

Section: Procurement Process (External)

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. A company has decided to acquire materials via internal procurement. What is the likely next step?

 

  1. Create an STO
  2. Create a purchase order
  3. Create a sales order
  4. Initiate shipping
  5. Post a goods receipt

 

Answer: a

 

Difficulty: Medium

Section: Procurement Process Internal Procurement

 

 

  1. Which one of the following statements about the goods receipt step in the procurement process is TRUE?

 

  1. No FI or material documents are created.
  2. One material document is created, but no FI documents are.
  3. One FI document created, but no material documents are.
  4. Both FI and material documents are created.
  5. None of the above

 

Answer: d

 

Difficulty: Medium

Section:  Procurement Process Internal Procurement

 

 

  1. Identify the step in the procurement process for which a material document is created.

 

  1. Goods issue
  2. Goods receipt
  3. Transfer order
  4. STO
  5. Create requisition

 

Answer: b

 

Difficulty: Medium

Section: Procurement Process Internal Procurement

 

 

  1. Identify the step in the fulfillment process for which a material document is created.

 

  1. Goods issue
  2. Goods receipt
  3. Transfer order
  4. STO
  5. Create requisition

 

Answer: a

 

Difficulty: Medium

Section:  Fulfillment Process Concluding Steps

 

 

  1. Which one of the following activities triggers the shipping step (goods issue) in the fulfillment process?

 

  1. Goods receipt is posted
  2. Availability check is initiated
  3. Transfer order is created
  4. Picking is completed
  5. STO is created

 

Answer: d

 

Difficulty: Medium

      Section:  Fulfillment Process Shipping

 

 

  1. Which statement about the production process is TRUE?

 

  1. It is triggered by the WM process.
  2. The first step is an availability check.
  3. The last step is confirmation.
  4. It involves issuing materials to the production order.
  5. No FI documents are created.

 

Answer: d

 

Difficulty: Medium

      Section: General

 

 

  1. In the procurement process, a purchase requisition is created during which step?

 

  1. Availability check
  2. Sales order processing
  3. Requirements determination
  4. Purchase order processing
  5. Source of supply determination

 

Answer: c

 

Difficulty: Medium

      Section:  Procurement process Initial steps

 

 

  1. In a plant-to-plant movement, valuation occurs at

 

  1. Goods issue and at the valuation price of the issuing plant.
  2. Goods receipt and at the valuation price of the issuing plant.
  3. Goods issue and at the valuation price of the receiving plant.
  4. Goods receipt and at the average price of the receiving plant.
  5. Goods issue and at the average price of the receiving plant.

 

Answer: a

 

Difficulty: Medium

Section: Procurement Process Internal Procurement

 

 

  1. Calculate the financial effect of a goods issue posting based on the following data.

 

Procurement type: Internal

Materials: Pens

Quantity shipped: 100

Valuation price at the receiving plant (for one pen): $2.30

Valuation price at the sending plant (for one pen): $2.40

 

 

  1. Debit GR/IR, credit inventory for $230.00.
  2. Debit inventory, credit COGS for $240.00.
  3. Debit inventory, credit GR/IR for $230.00.
  4. Debit and credit to the inventory account for $240.00.
  5. No financial effect takes place at this step, so no FI document is created.

 

Answer: d

 

Difficulty: Difficult

Section: Procurement Process Internal Procurement

 

 

  1. What is the FI effect of a goods receipt posting in the external procurement process?

 

  1. Debit GR/IR, credit inventory
  2. Debit inventory, credit COGS
  3. Debit inventory, credit GR/IR
  4. Debit and credit to the inventory account
  5. No financial effect takes place at this step, so no FI document is created.

 

Answer: c

 

Difficulty: Medium

Section: Procurement Process External Procurement

 

 

  1. What is the general ledger impact when a vendor invoice is received and verified?

 

  1. Debit GR/IR, credit vendor subledger account
  2. Debit inventory, credit GR/IR
  3. Debit vendor subledger account, credit COGS
  4. Debit inventory, credit vendor subledger account
  5. Debit vendor subledger account, debit GR/IR

 

Answer: a

 

Difficulty: Medium

Section: Procurement Process External Procurement

 

 

 

 

 

 

 

 

 

  1. What is the general ledger impact when a transfer requirement is created in the warehouse management process?

 

  1. Debit GR/IR, credit inventory
  2. Debit inventory, credit COGS
  3. Debit inventory, credit GR/IR
  4. Debit and credit to the inventory account
  5. There is no impact on the GL.

 

Answer: e

 

Difficulty: Easy

Section: Warehouse Management Steps Related to Procurement

 

 

  1. In WM steps related to fulfillment, a transfer order is created based on a(n)

 

  1. Purchase order.
  2. Goods issue.
  3. Delivery document.
  4. Goods receipt.

 

Answer: c

 

      Difficulty: Medium

Section: Warehouse Management Steps Related to Fulfillment

 

 

  1. What is the general ledger impact of the goods issue step in the fulfillment process?

 

  1. Debit GR/IR, credit inventory
  2. Debit inventory, credit COGS
  3. Debit and credit to the inventory account
  4. Debit COGS, credit inventory
  5. No financial effect takes place at this step, so no FI document is created.

 

Answer: d

 

Difficulty: Medium

Section: Fulfillment Process Concluding Steps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Calculate the debit and credit for the goods issue step in the fulfillment process, based on the following data. (Note: You need to pick the right price for this calculation.)

 

Materials sold (trading goods): Printers

Quantities sold: 100

Price for customer: $120.00

Current average moving price: $85.00

Price from vendor: $84.00

Average price 30 days before customer order was placed: $86.00

 

  1. $12,000
  2. $8,500
  3. $8,400
  4. $8,600
  5. $0.00

 

Answer: b

 

Difficulty:  Medium

Section: Fulfillment Process Concluding Steps

 

 

  1. What is the GL entry when a company receives a payment from a customer?

 

  1. Debit revenue, credit customer
  2. Debit customer, credit revenue
  3. Debit bank, credit customer, credit accounts reconciliation account
  4. Debit accounts reconciliation account, credit bank
  5. Debit accounts reconciliation account, debit customer, credit bank

 

Answer: c

 

Difficulty: Medium

Section: Fulfillment Process Concluding Steps

 

 

  1. What is the CO impact in the confirmation step of the production process?

 

  1. Labor costs are transferred from the work centers to the production order.
  2. Material costs are debited to the production order as actual costs.
  3. The finished goods inventory account is debited.
  4. The manufacturing output settlement account is credited.
  5. The production order is credited by the value of the finished goods.

 

Answer: a

 

Difficulty: Difficult

Section: Production Process Continued

 

 

 

 

 

 

 

 

 

  1. What is the general ledger impact of the goods receipt step during a stock transfer?

 

  1. Debit GR/IR, credit inventory
  2. Debit inventory, credit COGS
  3. Debit and credit to the inventory account
  4. Debit COGS, credit inventory
  5. There is no GL impact.

 

Answer: e

 

Difficulty:  Medium

Section: Inventory Management (STO) Continued

 

 

 

 

 

Question type: True or False

 

 

  1. Sell-from-stock strategy uses inventory as a buffer between processes to de-couple them or to make them less dependent on each other.

 

Answer: True

 

Difficulty: Easy

Section: Learning Objectives

 

 

  1. The warehouse management process always results in the creation of a material document.

 

Answer: False

 

Difficulty: Medium

Section: General             

 

 

  1. The warehouse management process sometimes involves the creation of an FI document.

 

Answer: False

 

Difficulty: Medium

Section: Warehouse Management Steps Related to Procurement                          

      

          

  1. The confirmation of the transfer order (TO) is executed during the warehouse management process.

 

Answer: True

 

Difficulty: Medium

Section: Warehouse Management Steps Related to Procurement                                  

 

 

 

 

 

  1. Sales order processing and payment are steps in the procurement process.

 

Answer: False

 

Difficulty: Medium

Section: Fulfillment Process Initial Steps                           

      

 

  1. The availability check in the fulfillment process can trigger the procurement process.

 

Answer: True

 

Difficulty: Medium

Section: Procurement Process Initial Steps                          

 

 

  1. Creating a purchase order is a step in the fulfillment process.

 

Answer: False

 

Difficulty: Easy

Section: Procurement Process External Procurement   

 

 

  1. The production process can trigger the procurement process.

 

Answer: True

 

Difficulty: Easy

Section: General               

 

 

  1. The fulfillment process can trigger the procurement process.

 

Answer: True

 

Difficulty: Easy

Section: Procurement Process Initial Steps         

 

 

  1. There is a controlling (CO) impact in the billing step of the procurement process.

 

Answer: False

 

      Difficulty: Medium

Section: General              

                                        

 

  1. There is a controlling (CO) impact in the goods issue step of the fulfillment process.

 

Answer: True

 

Difficulty: Medium

Section: General       

 

 

 

  1. The goods issue step in in the fulfillment process results in the creation of FI and material documents and also has a CO impact.

 

       Answer: True

 

       Difficulty: Medium

Section: General                   

              

                  

  1. The last step of the production process is always goods issue.

 

Answer: False

 

Difficulty: Easy

Section: General                 

        

 

  1. A purchase requisition is converted to a PO in the purchase order processing step in the procurement process.

 

 Answer: True

 

Difficulty: Medium

Section: Procurement Process Initial steps

 

 

  1. In external procurement, materials have the status stock in transit at the time of the goods issue step for the receiving plant.

 

Answer: False

 

Difficulty: Medium

Section: Procurement Process Internal Procurement

 

 

  1. In the internal procurement process, the debits and credits for the GL account postings at the goods issue step are calculated based on the valuation price at the sending plant.

 

Answer: True

 

Difficulty: Difficult

Section: Procurement Process Internal Procurement

 

 

  1. At the time of goods receipt in an internal procurement process, the material document consists of two lines for each of the plants.

 

Answer: False

 

Difficulty: Medium

Section: Procurement Process Internal Procurement

 

 

 

 

 

  1. At the time of a goods receipt in an internal procurement process, both material and FI documents are created.

 

Answer: False

 

Difficulty: Medium

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