ch01(2)

Chapter 1 Introduction Introduction to Business Processes Multiple Choice Questions 1.

Which Which term refers refers to business business proces processes ses that that are not executed executed by a single single group group or function function?? a.  b. c. d. e.

Silo Ef Effect Cross-Functional Func Functi tion onal al Stru Struct ctur uree Ente Enterp rpri rise se Sy System stemss Orga Organi nia ati tion onal al Str Struc uctu ture re

Easy Answer! b Difficulty! Easy Section: "he Functional Organiational Structure #.

Page Reference: 1 Practice:

Which Which term refers refers to a system in in $hich $or%ers $or%ers complete complete their their tas%s tas%s in separate separate departme departments nts $ithout regard to the conse&uences for the other components of the process ? a.  b. c. d. e.

E'( Effect Cross-Functional Func Functi tion onal al Stru Struct ctur uree Ente Enterp rpri rise se Sy System stemss Silo Ef Effect

Answer! e Difficulty! Easy Easy Section: "he Functional Organiational Structure! Structure! "he Silo Effect

).

Page Reference: # Practice:

Which Which system system supp support ortss busine business ss proce processe ssess end to end? a.  b. c. d. e.

*ana *anage geme ment nt Syst System em +ccounting System System Ente Enterp rpri rise se Syst System em Func Functi tion onal al Stru Struct ctur uree ,ocum ocumen entt Sy System stem

Answer! c Difficulty! *edium *edium Section: "he Functional Organiational Structure! Structure! "he Silo Effect

Page Reference: # Practice: es

. Which of the follo$ing statements about business processes is true? a.  b. c. d. e.

"hey are executed across multiple functions. "hey are initiated by some type of trigger. "hey in/ol/e multiple steps. +ll of the abo/e 0one of the abo/e

Answer: d Difficulty:  *edium Section: usiness (rocesses

2.

Which term represents a set of tas%s or acti/ities that produce desired outcomes? a.  b. c. d. e.

usiness (rocess "rigger  Outcome Enterprise 'esource (lanning 0one of the abo/e

Answer! a Section: usiness (rocesses

3.

Difficulty! Easy Practice:

Page Reference: 

Which term refers to all of the acti/ities in/ol/ed in buying or ac&uiring the materials used  by the organiation4 such as ra$ materials needed to ma%e products? a.  b. c. d. e.

*aterial (lanning (rocurement (rocess (roduction (rocess Fulfillment (rocess 5ifecycle ,ata *anagement

Answer! b Section: usiness (rocesses

6.

Page Reference: 

Difficulty! *edium Practice: es

Page Reference: 2

Which process in/ol/es the actual creation of the products? a.  b. c. d. e.

*aterial (lanning (rocurement (rocess (roduction (rocess Fulfillment (rocess 5ifecycle ,ata *anagement

Answer! c Section: usiness (rocesses

Difficulty! *edium Practice:

Page Reference: 2

7.

Which process uses historical data and sales forecasts to plan $hich materials $ill be  procured and produced? a.  b. c. d. e.

*aterial (lanning (rocurement (rocess (roduction (rocess Fulfillment (rocess 5ifecycle ,ata *anagement

Answer! a Section: usiness (rocesses

8.

*aterial (lanning (rocurement (rocess (roduction (rocess Fulfillment (rocess 5ifecycle ,ata *anagement

Answer! e Section: usiness (rocesses

Difficulty! *edium Practice:

Page Reference! 2

Which process trac%s the financial impact of process steps $ith the goal of meeting legal reporting re&uirements? a.  b. c. d. e.

:uman Capital *anagement ;:C*< (ro=ect *anagement Financial +ccounting *anagement +ccounting or Controlling ;CO< 0one of the abo/e

Answer! c Section: usiness (rocesses

11.

Page Reference! 2

Which process supports the design and de/elopment of products from the initial product idea stage through the discontinuation of the product? a.  b. c. d. e.

19.

Difficulty! *edium Practice: es

Difficulty! *edium Practice:

Page Reference! 3

Which process is used to plan and execute large pro=ects such as the construction of a ne$ factory or the production of complex products such as airplanes? a.  b. c. d. e.

:uman Capital *anagement ;:C*< (ro=ect *anagement Financial +ccounting *anagement +ccounting or Controlling ;CO< 0one of the abo/e

Answer! b Section: usiness (rocesses

Difficulty! *edium Practice:

Page Reference! 3

1#.

Which process focuses on people $ithin an organiation and includes functions such as recruiting4 hiring4 training4 and benefits management? a.  b. c. d. e.

:uman Capital *anagement ;:C*< (ro=ect *anagement Financial +ccounting *anagement +ccounting or Controlling ;CO< 0one of the abo/e

Answer! a Section: usiness (rocesses

1).

Difficulty! ,ifficult Practice:

What is the final step of the procurement process? a.  b. c. d. e.

>n/oice (urchase 'e&uisition (urchase Order  (ayment 0one of the abo/e

Answer! d Difficulty! Easy Section: usiness (rocesses! (rocurement-uy

1.

Page Reference! 3 Practice:

What steps are in/ol/ed in the accounting portion of the procurement process ? a.  b. c. d. e.

'ecei/ing the materials and the in/oice Creating the purchase re&uisition and sending payment Creating and sending the purchase order  Creating the purchase re&uisition and recei/ing the materials 'ecei/ing the in/oice and sending payment

Answer! e Difficulty! ,ifficult Section: usiness (rocesses! (rocurement-uy

12.

Page Reference! 3

Page Reference! 6 Practice: es

What is the first step of the production process? a.  b. c. d. e.

+uthorie (roduction 'e&uest (roduction Create (roduct 'ecei/e Finished oods >ssue 'a$ *aterials

Answer! b Difficulty! Easy Section: usiness (rocesses! (rocurement-*a%e

Page Reference! 6 Practice: es

13.

What function does the $arehouse perform in the fulfillment process? a.  b. c. d. e.

(repares and sends the shipment to the customer  Communicates data related to the order to other parts of the organiation "rac%s the order  0otifies the customer  0one of the abo/e

Answer! a Difficulty! Easy Section: usiness (rocesses! (rocurement-*a%e

16.

Page Reference! 7 Practice: es

@@@@@@@@@@@ is concerned $ith matching the demand for materials in the organiation $ith the supply. a.  b. c. d. e.

usiness (lanning "he Silo Effect (ro=ect *anagement *aterial (lanning 0one of the abo/e

Answer! d Difficulty! *edium Section: usiness (rocesses! *aterial (lanning-(lan

17.

Page Reference! 7 Practice:

Which of the follo$ing is concerned $ith the storage and mo/ement of materials? a.  b. c. d. e.

usiness (lanning Silo Effect (ro=ect *anagement *aterial (lanning >n/entory and $arehouse management ;>W*<

+ns$er! e ,ifficulty! *edium (age 'eference! 8 Section: usiness (rocesses! >n/entory and Warehouse *anagement-Store Practice:

18.

@@@@@@@@@@@@@enables an organiation to optimie its product de/elopment process4 from design to mar%et4 $hile ensuring that it complies $ith industry4 &uality4 and regulatory standards? a.  b. c. d. e.

usiness (lanning 5ifecycle ,ata *anagement (ro=ect *anagement *aterial (lanning 0one of the abo/e

+ns$er! b ,ifficulty! *edium Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

(age 'eference! 19 Practice:

#9.

@@@@@@@@@@@@@ pro/ides tools to manage and store documents securely and to %eep trac% of the multiple /ersions of these documents? a.  b. c. d. e.

,ocument *anagement Enterprise *anagement (ro=ect *anagement *aterial (lanning 0one of the abo/e

+ns$er! a ,ifficulty! *edium Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

#1.

:o$ does > lobal sell its merchandise? a.  b. c. d. e.

,irectly to customers Aia a net$or% of specialied dealers Aia the >nternet +ll of the abo/e 0one of the abo/e

+ns$er! b ,ifficulty! *edium Section: lobal icycle >ncorporated ;>< ##.

(age 'eference! 19 Practice:

(age 'eference! 1) Practice: es

Which of the follo$ing statements about S+( 'B) is true? a.  b. c. d.

>t supports a single function or department >t is an end-to-end enterprise system Sharing data bet$een departments is problematic 0one of the abo/e

+ns$er! b ,ifficulty! *edium Section: :o$ to use this boo%! S+( Soft$are and Certification

(age 'eference! 12 Practice: es

Multiple Answer Questions 1.

Within the financial structure4 typical functions or departments found in a modern organiation include $hich of the follo$ing? f. purchasing g. operations

h. internships i. finance  =. mar%eting Answer! a4 b4 d4 e Difficulty! *edium Section: "he Functional Organiational Structure

#.

Which of the follo$ing are steps $ithin a generic business process of an organiation? a.  b. c. d. e.

(ayment "rigger  Shipment Outcome Confirmation

Answer! b4 d Section: usiness (rocesses

).

Difficulty! ,ifficult

Page Reference:  Practice:

Which processes ha/e an impact on an organiations finances? f. g. h. i.  =.

Financial accounting processes (ro=ect management processes *anagement accounting or controlling processes *aterial planning process (rocurement process

Answer! a4 c Section: usiness (rocesses

.

Page Reference: 1 Practice: es

Difficulty! *edium

Page Reference: 3 Practice: es

Which processes focus primarily on people and pro=ects? a.  b. c. d. e.

Financial accounting processes (rocurement process (roduction process :uman capital management processes (ro=ect management processes

Answer! d4 e Section: usiness (rocesses

Difficulty! *edium

Page Reference: 3 Practice:

2.

Which of the follo$ing are components of the procurement process? a.  b. c. d. e.

Warehouse (urchasing Sales Operations +ccounting

Answer! a4 b4 e Difficulty! *edium Section: usiness (rocesses! (roduction-*a%e

3.

Which of the follo$ing are components of the production ;ma%e< process? a.  b. c. d. e.

Sales Operations Warehouse +ccounting (roduction

Answer! c4 e Difficulty! *edium Section: usiness (rocesses! (roduction-*a%e

6.

Sales Operations Warehouse +ccounting (roduction

Answer! a4 c4 d Difficulty! *edium Section: usiness (rocesses! Fulfillment-Sell

Page Reference! 7 Practice:

"he term materials encompasses $hich of the follo$ing? a.  b. c. d. e.

(roducts Components (arts +nything used in an organiation +ccounting

Answer! a4 b4 c4 d Difficulty! *edium Section: usiness (rocesses! Fulfillment-Sell

8.

Page Reference! 6 Practice:

Which of the follo$ing are components of the fulfillment ;sell< process? a.  b. c. d. e.

7.

Page Reference! 6 Practice: es

Page Reference! 7 Practice:

Which of the follo$ing acti/ities are related to the production process? a. 'e&uest materials

 b. c. d. e.

Store materials 5ocate *aterials >ssue *aterials 'ecei/e (ayment

Answer! a4 b4 c4 d Difficulty! *edium Page Reference! 8 Section: usiness (rocesses! >n/entory and Warehouse *anagement-Store Practice:

19.

Which of the follo$ing acti/ities are related to the procurement process? a.  b. c. d. e.

>ssue *aterials 'ecei/e *aterials (repare for Storage Store *aterials 5ocate *aterials

Answer! b4 c4 d Difficulty! *edium Page Reference! 8 Section: usiness (rocesses! >n/entory and Warehouse *anagement-Store Practice:

11.

Which of the follo$ing acti/ities are related to the fulfillment process? a.  b. c. d. e.

5ocate *aterials (repare Shipment (repare for Storage Store *aterials Ship to Customer 

Answer! a4 b4 e Difficulty! *edium Page Reference! 8 Section: usiness (rocesses! >n/entory and Warehouse *anagement-Store Practice: es

1#.

Which of the follo$ing are components of the lifecycle data management process? a.  b. c. d. e.

Engineering *ar%eting +ccounting (roduction Sales

Answer! a4 b4 d Difficulty! *edium Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

1).

Which departments ta%e part in the conception of an idea? a. +ccounting  b. (roduction

Page Reference! 19 Practice:

c. Engineering d. Sales e. *ar%eting Answer! c4 e Difficulty! *edium Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

1.

>n $hich elements of the lifecycle data management process does mar%eting play a role? a.  b. c. d. e.

,esign Concei/e product ideas *a%e *ar%eting D ser/ice ,iscontinue product

Answer! c4 d4 e Difficulty! Easy Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

12.

Page Reference! 19 Practice:

Page Reference! 19 Practice:

>n $hich components of the asset management process is production in/ol/ed? a.  b. c. d. e.

Settlement (erform maintenance +uthorie maintenance 'e&uest maintenance (erform ser/ice

Answer! b4 c4 d Difficulty! *edium Page Reference! 11 Section: usiness (rocesses! +sset *anagement and Customer Ser/ice-Ser/ice Practice:

13.

Sales is in/ol/ed in $hich steps in the customer ser/ice process? a.  b. c. d. e.

(erform ser/ice Create ser/ice re&uest Settlement +uthorie ser/ice 'e&uest maintenance

Answer! b4 d Difficulty! *edium Section: usiness (rocesses! :uman Capital *anagement-(eople

16.

Page Reference: 11 Practice:

What part of the pro=ect management process is $ithin the /arious functional areas? a. udgeting  b. Execution c. Settlement

d. (lanning

Answer! a4 b4 c4 d Difficulty! *edium Section: usiness (rocesses! (ro=ect *anagement-(ro=ects

17.

Page Reference! 1# Practice: es

Which of the follo$ing products fall;s< $ithin >s line of business? a.  b. c. d.

,eluxe and professional touring bi%es *en and $omens off-road bi%es *otor bi%es i%e accessories

+ns$er! a4 b4 d ,ifficulty! *edium (age 'eference! 1 Section: lobal icycle >ncorporated ;>< Practice: es 18.

What is true about S+( 'B)? a.  b. c. d.

Supports a single function or department Executes e/ery process from start to finish Consolidates process data in a single database Enables users to /ie$ the status of a process in real time

+ns$er! b4 c4 d ,ifficulty! *edium Section: :o$ to use this boo%! S+( Soft$are and Certification

(age 'eference! 12 Practice: es

rue!"alse 1.

"he most common organiational structure $ithin modern organiations is the functional structure. Answer! "rue

Section: "he Functional Organiational Structure

#.

5osing sight of the big picture is commonly referred to as the silo effect. Answer! "rue

Section: "he Functional Organiational Structure! "he Silo Effect

).

Difficulty! Easy Page Reference: 1 Practice:

Difficulty! *edium Page Reference: # Practice:

Systems that support end-to-end processes are called business processes.

Answer! False

Section: usiness (rocesses

.

Difficulty! *edium Page Reference:  Practice:

+n enterprise system is a set of tas%s or acti/ities that produce desired outcomes. Answer! False

Difficulty! Easy Page Reference: # Section: "he Functional Organiational Structure! Enterprise Systems Practice:

2.

Without the /arious steps of the business process4 a company cant successfully bill customers and ship products. Answer! "rue

Section: usiness (rocesses

3.

"he lifecycle data management (design) process supports the design and de/elopment of  products from the initial product idea stage through the discontinuation of the product. Answer! "rue

Section: usiness (rocesses

6.

Difficulty! *edium Page Reference: 2 Practice:

"he material planning process is used to maintain internal assets such as machinery and to deli/ery after-sales customer ser/ices such as repairs. Answer! False

Section: usiness (rocesses

7.

Difficulty! *edium Page Reference:  Practice:

Difficulty! *edium Page Reference: 2 Practice:

"he fulfillment process ;sell< consists of all the steps in/ol/ed in selling and deli/ering the  products to the organiations customers. Answer! "rue

Difficulty! *edium Page

Reference: 2 Section: usiness (rocesses

8.

"he financial accounting process focuses on internal reporting to manage costs and re/enues. Answer! False

Section: usiness (rocesses

19.

Section: usiness (rocesses! (rocurement-uy

Section: usiness (rocesses! (rocurement-*a%e

Section: usiness (rocesses! *aterial (lanning-(lan

Difficulty! *edium Page Reference: 7 Practice:

5ead time is the time bet$een placing the order and recei/ing confirmation that the item has  been shipped. Answer! False

Section: usiness (rocesses! *aterial (lanning-(lan

1.

Difficulty! ,ifficult Page Reference: 6 Practice:

*aterials encompass all the products4 components4 and parts that are used in an organiation. Answer! "rue

1).

Difficulty! *edium Page Reference: 3 Practice:

Within the production process4 the issuing of ra$ materials ta%es place in the $arehouse. Answer! "rue

1#.

Difficulty! ,ifficult Page Reference: 3 Practice:

"he procurement process includes all of the tas%s in/ol/ed in ac&uiring needed materials. Answer! "rue

11.

Practice:

Difficulty! Easy Page Reference: 7 Practice:

"he purpose of material planning is to match supply $ith demand. Answer! "rue

Difficulty! *edium Page Reference: 7

Section: usiness (rocesses! *aterial (lanning-(lan

12.

>nsufficient supply results in a situation called stoc% out. Answer! "rue

Section: usiness (rocesses! *aterial (lanning-(lan

13.

Section: usiness (rocesses! *aterial (lanning-(lan

Difficulty! ,ifficult Page Reference: 7 Practice:

Forecasts of finished goods are determined by data from material planning. Answer! "rue

Section: usiness (rocesses! *aterial (lanning-(lan

17.

Difficulty! *edium Page Reference: # Practice:

Excess supply $ill result in lo$er in/entory costs because the company is eligible for a bul% rate. Answer! False

16.

Practice:

Difficulty! *edium Page Reference: 8 Practice:

5arge $arehouses do not need to mo/e items as &uic%ly and efficiently as smaller $arehouses. Answer! False

Difficulty! *edium Page Reference: 8 Section: usiness (rocesses! >n/entory and Warehouse *anagement-Store Practice:

18.

+sset management is concerned $ith both the pre/enti/e and the correcti/e maintenance of an organiations e&uipment. Answer! "rue

Difficulty! *edium Page Reference: 19 Section: usiness (rocesses! +sset *anagement and Customer Ser/ice-Ser/ice Practice:

#9.

,ocument management pro/ides tools to manage and store documents securely and to %eep trac% of the multiple /ersions of these documents. Answer! "rue

Difficulty! Easy Page

Reference: 19 Practice:

Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign

#1.

"he final stage of asset management and customer ser/ice is the authoriation maintenance stage. Answer! False

Difficulty! *edium Page Reference: 11 Section: usiness (rocesses! +sset *anagement and Customer Ser/ice-Ser/ice Practice:

##.

"he final stage of the customer ser/ice process is the settlement stage. Answer! "rue

Difficulty! Easy Page Reference: 11 Section: usiness (rocesses! +sset *anagement and Customer Ser/ice-Ser/ice Practice:

#).

+ pro=ect is permanent in nature and is typically associated $ith smaller4 simpler pro=ects. Answer! False

Section: usiness (rocesses! (ro=ect *anagement-(ro=ects

#.

,uring the planning phase of a pro=ect the scope of the pro=ect is defined and the milestones and deadlines are established. Answer! "rue

Section: usiness (rocesses! (ro=ect *anagement-(ro=ects

#2.

Difficulty! Easy Page Reference: 1# Practice:

(ro=ects rely on resources located in and $or% performed in other processes. Answer! "rue

Section: usiness (rocesses! (ro=ect *anagement-(ro=ects

#3.

Difficulty! *edium Page Reference: 11 Practice:

Difficulty! *edium Page Reference: 1# Practice:

Common reports of financial accounting include income statement4 profit and loss4 and  balance sheet. Answer! "rue

Difficulty! *edium

Page Reference: 1# Section: usiness (rocesses! Financial +ccounting-"rac% for External 'eporting Practice:

#6.

+ccounts payable is used to trac% money o$ed by customers. Answer! False

Difficulty! Easy Page Reference: 1) Section: usiness (rocesses! Financial +ccounting-"rac% for External 'eporting Practice:

#7.

+sset accounting is concerned $ith trac%ing financial data related to assets such as machinery and cars. Answer! "rue

Difficulty! *edium Page Reference: 1) Section: usiness (rocesses! Financial +ccounting-"rac% for External 'eporting Practice:

#8.

+ccounts recei/able is used to trac% money that is o$ed to /endors. Answer! False

Difficulty! Easy Page Reference: 1) Section: usiness (rocesses! Financial +ccounting-"rac% for External 'eporting Practice:

)9.

*anagement accounting helps an organiation trac% costs and re/enues to assess its  profitability Answer! "rue

Difficulty! *edium Page Reference: 1) Section: usiness (rocesses! *anagement +ccounting-"rac% for >nternal 'eporting Practice: