TRUE/FALSE

1. One of the four functional areas of operation is Human Resources (HR).

ANS: T
2. Historically, usinesses ha!e ha" or#ani$ational structures that separate" the functional areas, ut
usiness schools ha!e not een or#ani$e" li%e that.
ANS: &
'. (nformation systems that are "esi#ne" so functional areas share "ata are calle" inte#rate" information
systems.
ANS: T
). The functional area of Supply *hain +ana#ement (S*+) sets prices.
ANS: &
,. Sales forecasts are historical recor"s of sales.
ANS: &
-. Accounts recei!ale are recor"e" y the Human Resources "epartment (HR).
ANS: &
.. The usiness function of #o!ernment compliance falls un"er the Supply *hain +ana#ement functional
area of operation.
ANS: &
/. The usiness process of *ash &lo0 +ana#ement is han"le" un"er the Accountin# an" &inance functional
area of operation.
ANS: T
1. 2hen manufacturin# runs out of ra0 materials, it3s %no0n as a stoc%out.
ANS: T
14. To a!oi" stoc%outs, manufacturers mi#ht carry e5tra ra0 materials. This e5cess is %no0n as safety stoc%.
ANS: T
1. The comple5 har"0are an" soft0are that #oes into an 6R7 system 0as not a!ailale until the 11.4s.
ANS: &
2. The capailities of computer har"0are "oulin# e!ery 1/ months is %no0n as 8ates3 9a0.
1 | 7 a # e
ANS: &
'. Scalaility refers to a piece of e:uipment3s capacity ein# e5cee"e" an" that capacity ein# e5pan"e" y
a""in# ne0 har"0are.
ANS: T
). The soft0are that hol"s "ata in an or#ani$e" fashion is %no0n as a "ataase mana#ement system, or a
;<+S.
ANS: T
,. +aterials re:uirements plannin# (+R7) soft0are allo0s a plant mana#er to plan pro"uction an" ra0
materials re:uirements y #uess=timation.
ANS: &
-. The "irect computer=to=computer e5chan#e of stan"ar" usiness "ocuments is %no0n as 6;(, or
electronic "ata interchan#e.
ANS: T
.. The functional mo"el of usiness an" mana#ement 0as useful for "eca"es an" is still the current school
of thou#ht.
ANS: &
/. SA73s first soft0are pro>ect in!ol!e" "e!elopin# a materials an" lo#istics mana#ement system for (*(.
ANS: T
1. SA7 e5pan"e" into international mar%ets ut %ept the soft0are in a sin#le lan#ua#e, 8erman, an" a sin#le
currency, the 6uro.
ANS: &
14. SA73s R?' can only run on mainframe computers.
ANS: &
11. Ol" systems are %no0n as le#acy systems.
ANS: T
12. Open architecture is "efine" as allo0in# thir"=party soft0are !en"ors to 0rite soft0are to inte#rate 0ith
the main pac%a#e, such as SA73s R?'.
ANS: T
2 | 7 a # e
1'. The Oracle corporation e#an sellin# 6R7 soft0are@ they recently ac:uire" a firm %no0n for its "ataase
mana#ement systems.
ANS: &
1). ;efinin# the "ollar limits on transactions in the SA7 R?' system is %no0n as limitin# the tolerance
#roups.
ANS: T
1,. R?'3s "esi#n incorporates est practices, 0hich means the "esi#ners ha!e chosen the est, most efficient
0ay in 0hich a usiness process shoul" e han"le".
ANS: T
1-. One enefit of 6R7 systems is the elimination of up"atin# an" repairin# many separate computer systems.
ANS: T
1.. A lar#e company mi#ht spent A1 million on 6R7 implementation, 0hich inclu"es soft0are an" trainin#.
ANS: &
1/. Not e!ery company is suite" to 6R7 systems.
ANS: T
11. SA73s internal pro#rammin# lan#ua#e is !isual asic.
ANS: &
24. The return on in!estment (RO() is an assessment of an in!estment3s pro>ect3s !alue that is calculate" y
"i!i"in# the !alue of the pro>ect3s enefits y the !alue of the pro>ect3s cost.
ANS: T
22. (n"i!i"ual information systems for each functional area in a company are %no0n as silos.
ANS: T
2'. Silos of information are also %no0n as sto!epipes.
ANS: T
2). The most current !ersion of SA73s soft0are is %no0n as R?'.
ANS: &
2,. The most current !ersion of SA73s soft0are is %no0n as SA7 6R7.
' | 7 a # e
ANS: T
1. (n SA7 R?', relati!ely permanent "ata aout customers is %ept in the *ustomer +aster ;ata tale.
ANS: T
2. (n SA7 R?', relati!ely permanent "ata aout in!entory is %ept in the +aterial +aster ;ata tale.
ANS: T
'. (n SA7 R?', relati!ely permanent "ata in the +aterial +aster ;ata tale is a!ailale to only one mo"ule,
the +aterials +ana#ement mo"ule.
ANS: &
). (n SA7 R?', relati!ely permanent "ata aout customers in the *ustomer +aster ;ata tale is a!ailale to
only the Sales an" ;istriution mo"ule.
ANS: &
,. SA7 R?'3s system allo0s one to #roup customers, 0hich is commonly %no0n as an Bor#ani$ational
structureB.
ANS: T
-. (n SA7 R?', the lin%e" set of "ocument numers is calle" the B"ocument flo0B.
ANS: T
.. (n SA7 R?' the electronic e!i"ence of a transaction is calle" a "ocument.
ANS: T
/. The first step in the SA7 6R7 sales an" "istriution process is the Sales Or"er 7rocessin# step.
ANS: &
1. 7ricin# cannot e set or confi#ure" in the SA7 6R7 system.
ANS: &
14. 7ricin# can e set usin# con"ition techni:ues.
ANS: T
11. *R+ soft0are stan"s for *ustom Resource +ana#ement. This is a speciali$e" type of 6R7.
ANS: &
12. 8loal AT7 allo0s for searchin# of a particular pro"uct at multiple plants 0orl"0i"e.
) | 7 a # e
ANS: T
1'. Returne" pro"ucts to a company are processe" more efficiently if the customer first calls for a R+A.
ANS: T
1). An in:uiry in the SA7 6R7 system occurs in the ;eli!ery step of the Sales an" ;istriution cycle.
ANS: &
1,. (n the SA7 6R7 system, "eli!ery means releasin# the "ocuments that the 0arehouse uses to pic%, pac%,
an" ship or"ers, rather than the tra"itional "efinition of transferrin# #oo"s.
ANS: T
1-. The 7O Numer is a numer assi#ne" y &itter Snac%er to trac% or"ers in the SA7 6R7 system.
ANS: &
1.. 2ith on="eman" *R+, the soft0are an" computer e:uipment resi"e 0ith the *R+ pro!i"er@ it is not
installe" in=house.
ANS: T
1. 8oo" pro"uction "ecisions can e ma"e %no0in# only the current le!el of finishe" #oo"s in!entory.
ANS: &
2. 7ro"uction planners a##re#ate pro"ucts into pro"uct #roups to ma%e forecasts an" plans more accurate.
ANS: &
'. The Sales an" Operations 7lannin# process is use" to comine the sales forecast 0ith capacity
information to "etermine a pro"uction plan for finishe" #oo"s.
ANS: T
). ;eman" +ana#ement in the SA7 R?' system is the process 0here sales forecasts are a">uste" to
incorporate the impact of mar%etin# initiati!es.
ANS: &
,. The +R7 process "etermines the sche"ule of finishe" #oo"s pro"uction.
ANS: &
-. Supply *hain +ana#ement is as much an approach to "oin# usiness 0ith suppliers as it is a technolo#y.
ANS: T
.. (n a tra"itional supply chain, "eman" information is transmitte" rapi"ly to all memers of the supply
chain.
, | 7 a # e
ANS: &
/. 6R7 systems are necessary to implement #oo" supply chain mana#ement.
ANS: &
1. The percenta#e of the or"er that the supplier pro!i"es in the first shipment is %no0n as the first=rate.
ANS: &
14. +a%e to or"er items are pro"uce" to fill customer3s re:uests.
ANS: T
11. The cost it normally ta%es to manufacture a pro"uct, 0hich is usually "eri!e" from historical "ata an" any
chan#es that ha!e occurre" since then, is %no0n as a structure" cost.
ANS: &
12. Rou#h=cut plannin# is a common term in manufacturin# for a##re#ate plannin#.
ANS: T
1'. The pro"uction plan for all finishe" #oo"s is %no0n as the +7S, or the master pro"uction sche"ule.
ANS: T
1). Another term for the recipe of a pro"uct is the ill of materials.
ANS: T
1,. 9ea" times an" lot si$in# help a company "etermine the transfer of #oo"s to the customer.
ANS: &
1-. <ecause &itter Snac%er uses lar#e :uantities of oats, the most cost=effecti!e 0ay to purchase oats is to uy
a farm an" #ro0n them.
ANS: &
1.. <ecause &itter Snac%er uses lar#e :uantities of oats, the most cost=effecti!e 0ay to puchase oats is in ul%
hopper=truc% :uantities, 0hich means that the material must e or"ere" in )),444 poun" :uantities.
ANS: T
1/. The percenta#e of the or"er that the supplier pro!i"e" in the first shipment is %no0n as the initial or"er
lea" time.
ANS: &
- | 7 a # e
11. The initial fill rate measures the time nee"e" for the supplier to fill the or"er.
ANS: &
1. An income statement sho0s a companyCs profit or loss in a perio".
ANS: T
2. 2hen a company has an 6R7 system it no lon#er nee"s a #eneral le"#er.
ANS: &
'. 2hen a company has an 6R7 system the #eneral le"#er is maintaine" y the 6R7 system.
ANS: T
). The SA7 6R7 system has a mo"ule calle" Accountin# an" &inance.
ANS: &
,. (n SA7 6R7 access to #eneral le"#er accounts is sprea" o!er many mo"ules.
ANS: T
-. (n a manufacture" item, the cost of heatin# the plant 0oul" e consi"ere" part of the itemCs ra0 materials.
ANS: &
.. (n a manufacture" item, the cost of heatin# the plant 0oul" e consi"ere" part of the itemCs o!erhea".
ANS: T
/. Dsin# stan"ar" costs to accumulate manufacturin# costs means that the company "oes not ha!e to %eep
trac% of actual manufacturin# costs.
ANS: &
1. Acti!ity ase" costin# is a 0ay of treatin# o!erhea" costs more li%e "irect costs.
ANS: T
14. Acti!ity ase" costin# means %eepin# trac% of instances of acti!ities as 0ell as their costs.
ANS: T
11. Ha!in# 6R7 0ill let a company use more cost allocation ases.
ANS: T
12. Ha!in# 6R7 0ill re:uire a company to restrict the numer of cost allocation ases.
. | 7 a # e
ANS: &
1'. (n an 6R7 system, "ata "oes not flo0 from one mo"ule to another.
ANS: T
1). (n SA7 6R7 an e!entCs B"ocument flo0B can e accesse" from any SA7 6R7 screen.
ANS: T
1,. SA7 6R7Cs mana#ement reportin# tools use "ata in "ata 0arehouses.
ANS: T
1-. The capaility of !ie0in# summary information an" then ein# ale to loo% at "etails ehin" the
summary is %no0n as "ata minin#.
ANS: &
1.. The DS *on#ress passe" the Saranes=O5ley Act of 2442 in response to the frau" an" ause in the 6nron
collapse.
ANS: T
1/. An 6R7 system coul" ha!e pre!ente" all frau" at 6nron.
ANS: &
11. (t3s !ery easy to "elete items in the 6R7 system.
ANS: &
24. Dser authori$ations help pre!ent frau" an" ause y employees payin# fictitious !en"ors.
ANS: T
21. Tolerance #roups allo0 for limitin# the authority of employees o!er certain amounts of transactions.
ANS: T
2-. Another name for an income statement is a profit an" loss statement.
ANS: T
2.. (n an 6R7 system, the alance sheet an" 7E9 statements are "ataase reports.
ANS: T
2/. +ana#erial accountin# "eals 0ith "eterminin# the costs an" profitaility of the company3s acti!ities.
/ | 7 a # e
ANS: T
21. (n the SA7 6R7 system, inputs to the #eneral le"#er occur simultaneously 0ith input of usiness
transactions to the !arious mo"ules.
ANS: T
'2. The %ey feature of any 6R7 system is the aility to "rill "o0n from a report to the source "ocuments
(transactions) that create" it.
ANS: T
1. The tas%s associate" 0ith mana#in# a companyCs 0or%force is no0 %no0n as human capital mana#ement
or H*+.
ANS: T
2. The responsiilities of an HR "epartment inclu"e manufacturin# of #oo"s an" purchasin# ra0 materials.
ANS: &
'. Hirin# costs for an employee can reach as hi#h as A.4,444.
ANS: T
). Saermetrics is the statistical techni:ue that uni!ersities use to accept stu"ents into their colle#e
pro#rams.
ANS: &
,. Succession plannin# shoul" e performe" on e!ery employee in the company.
ANS: &
1. Any astract representation of a process is %no0n as a process mo"el.
ANS: T
2. A #raphical representation of the mo!ement or flo0 of concrete or astract items is a sprea"sheet.
ANS: &
'. The term process mappin# is use" interchan#ealy 0ith flo0chartin#.
ANS: T
). An assessment of "isparities et0een an or#ani$ationCs current situation an" its lon#=term #oals is %no0n
as a s0imlane assessment.
1 | 7 a # e
ANS: &
,. 7rocess oun"aries "efine 0hich acti!ities are to e inclu"e" in the process.
ANS: T
-. 6R7 soft0are such as SA7 has many usiness applications ut none of them support usiness processes.
ANS: &
.. (n flo0chart analysis, each acti!ity in the process is analy$e" for the !alue it a""s to the pro"uct or
ser!ice.
ANS: &
/. ;ynamic process mo"elin# ta%es a asic process flo0chart an" puts it into motion usin# computer
simulation.
ANS: T
1. Soft0are pro#rams that automate the e5ecution of usiness processes an" a""ress all aspects of the
process are calle" 6R7 2i$ar"s.
ANS: &
14. Or#ani$ational chan#e mana#ement is a tri!ial part of the implementation process.
ANS: &
1. 6;( cannot e performe" on the (nternet.
ANS: &
2. (nternet ase" procurement inclu"es tra"e e5chan#es amon# companies competin# for the same mar%et.
ANS: T
'. ;ynamic pricin# is enalin# more mi""lemen to #et >os facilitatin# uyin# an" sellin# of #oo"s on the
(nternet.
ANS: &
). To e connecte" any time from any place to the ac%=office system can pro!i"e a competiti!e a"!anta#e.
ANS: T
,. A company that pro!i"es the mana#ement of applications for a company o!er a net0or% is calle" a <O7,
a ac%=office pro!i"er.
ANS: &
14 | 7 a # e
-. AS7s are e5perts in "eli!erin# (S applications.
ANS: T
.. A portal is a customi$e" 2e site that ser!es as a home ase for in"i!i"ual 0or%ers.
ANS: T
/. 2e ser!ices are shops on the (nternet 0here consumers can uy a !ariety of items.
ANS: &
1. F+9 is similar to HT+9 in that it only "escries the "isplay of the information on a 0e pa#e.
ANS: &
14. An R&(; is a small ta# that inclu"es a microprocessor an" an antenna.
ANS: T
11. The est 0ay for a uni!ersity to run a lar#e 6R7 pac%a#e li%e SA7 for e"ucation purposes only (i.e.
teachin# in the classroom an" las) 0oul" e to run an AS7.
ANS: T
MULTIPLE CHOICE
1. 2hich of the follo0in# is a functional area of operationG
a. 7ac%a#in# c. Shippin#
b. Supply Chain Management ". <a%in#
ANS: <
2. 2hich usiness function is performe" y Accountin# an" &inanceG
a. C!t all"atin an# "nt$l c. <enefits
. Ta%in# sales or"ers ". 7lant maintenance
ANS: A
'. 2hat are the computers, people, proce"ures, an" soft0are that store, or#ani$e, an" "eli!er information in
an or#ani$ationG
a. The *7D ". In%$matin !y!tem!
. The 7rocess System ". 7ersonnel systems
ANS: *
). To"ay3s mana#ers are e#innin# to thin% in terms of usiness process. A usiness process cuts across
0hich functional areas of operationG
a. +ar%etin# an" Sales ". Human Resources
. Supply *hain +ana#ement e. All % the ab&e
11 | 7 a # e
c. Accountin# an" &inance
ANS: 6
,. (nformation systems that can e "esi#ne" so that functional areas of operation share "ata are calle":
a. Integ$ate# in%$matin !y!tem! c. Non=mi""le0are information systems
. *omplete information systems ". 9in%e" information systems
ANS: A
-. Analyses that attempt to pre"ict the future sales of a pro"uct are calle":
a. Sale! %$e"a!t! c. Sales "i!in#
. Sales "i!inin# ". Sales "eri!in#
ANS: A
.. 2hich of the follo0in# is an input to the +ar%etin# an" Sales functional areaG
a. 7ro"uction plans ". Pe$'unit "!t
. Ra0 material or"ers ". Accounts payale "ata
ANS: *
/. 2hich of the follo0in# outputs 0oul" emer#e from the Accountin# an" &inance functional areaG
a. 7ac%a#in# or"ers c. Re#ulation compliance
. Sales strate#y #. Finan"ial $ep$t!
ANS: ;
1. 2hen purchasin# a computer, the functional area responsile for han"lin# the financial help for
purchasin# that computer is
a. +ar%etin# an" Sales c. Supply *hain +ana#ement
b. A""unting an# Finan"e ". Human Resources
ANS: <
14. 2hen purchasin# a computer, the functional area responsile for technical support is
a. Ma$(eting an# Sale! c. Supply *hain +ana#ement
. Accountin# an" &inance ". Human Resources
ANS: A
11. 2hen manufacturin# runs out of ra0 material, it3s %no0n as a(n)
a. Shortfall c. ;epletion
. 6mpty shelf #. St"(ut
ANS: ;
12. HHHH results in mana#ement o!erin!estin# in e5tra ra0 materials
a. <ul#in# ra0 materials ". Sa%ety !t"(
. Stoc%up ". 65cess a##a#e
ANS: *
1'. 2hich of the follo0in# is an input to HRG
12 | 7 a # e
a. Pe$!nnel %$e"a!t! c. 9ayoff an" recall company policy
. Sales "ata ". Tra!el e5pense company policy
ANS: A
1. The comple5 soft0are an" har"0are re:uire" for 6R7 systems 0as not a!ailale until the
a. 11-4s c. 11/4s
. 11.4s #. )**+!
ANS: ;
2. The oser!ation that the numer of transistors uilt onto a computer chip "oules e!ery 1/ months is
%no0n as:
a. M$e,! La- c. ;ouletin#
. 8ate3s 7rophesy ". Acceleration
ANS: A
'. 2hen a piece of e:uipment3s capacity is e5cee"e", its capacity can e increase" y a""in# ne0 har"0are.
This is commonly %no0n as:
a. A"aptaility ". S"alability
. +i""le0are ". *omputaility
ANS: *
). (n the 11/4s, HHHH, the technolo#y that hol"s "ata in an or#ani$e" fashion, e5iste" for 6R7 "e!elopment.
a. Sprea"sheets c. *lient?Ser!er
b. ./MS ". 2or"=processors
ANS: <
,. HHHH soft0are allo0s a plant mana#er to plan pro"uction an" ra0 materials re:uirements y 0or%in#
ac%0ar" from the sales forecast.
a. ;<+S ". MRP
. 6;( ". 6&T
ANS: *
-. The "irect computer=to=computer e5chan#e of stan"ar" usiness "ocuments is %no0n as:
a. +R7 ". E.I
. 6=mail ". ;;S
ANS: *
.. Soft0are HHHH are in"i!i"ual pro#rams that can e purchase", installe", an" run separately, ut e5tract
"ata from the common "ataase.
a. No"es ". M#ule!
. *hun%s ". Ti"its
ANS: *
/. 2hen thir" party soft0are companies are ale to 0rite soft0are to inte#rate 0ith an 6R7 system, it is sai"
to ha!e:
a. Open a$"hite"tu$e c. (nte#rate" pieces
1' | 7 a # e
. *lip=ons ". 7iecemeal no"es
ANS: A
1. Ol" information an" computer systems are %no0n as:
a. ;inosaurs ". Lega"y !y!tem!
. 7asse systems ". A#e" ones
ANS: *
14. HHHH is SA73s i##est competitor.
a. I.;. 6"0ar"s c. +icrosoft
. 7eopleSoft #. O$a"le
ANS: ;
11. 2hich R?' mo"ule recor"s sales or"ersG
a. S. c. 77
. ++ ". J+
ANS: A
12. 2hich R?' mo"ule recor"s transactions in the #eneral le"#erG
a. *O ". FI
. 2& ". 7S
ANS: *
1'. After a company chooses the mo"ules they 0ant to implement, they must "eci"e on aout HHHH options,
0hich allo0 the customer to customi$e the mo"ules to fit their usiness to some e5tent.
a. Settin#s c. Optional
b. Cn%igu$atin ". Tan"em
ANS: <
1). 2hich of the follo0in# is a enefit to runnin# an 6R7 systemG
a. 8loal inte#ration
. 6limination of up"atin# an" repairin# multiple systems
c. *apaility to mana#e operations, not >ust monitor them
#. All % the ab&e a$e bene%it!
ANS: ;
1,. An 6R7 system for a lar#e company 0ill cost HHHH, inclu"in# soft0are, trainin#, an" implementation.
a. 01+'1++ millin c. A1=, illion
. A1=, million ". A,4,444=A,44,444
ANS: A
1-. SA73s internal pro#rammin# lan#ua#e is calle":
a. R?' c. Kisual <asic
. *LL #. A/AP
ANS: ;
1) | 7 a # e
1.. One assessment of a pro>ect3s !alue is calculate" y the:
a. ;KT ". ROI
. 7+T ". 77T
ANS: *
1/. <umpy rollouts of 6R7 systems are usually cause" y:
a. Soft0are prolems c. Har"0are prolems
b. Peple p$blem! ". *onfi#uration prolems
ANS: <
11. The statistical an" lo#ical analysis of lar#e sets of transaction "ata is calle":
a. ;i##in# ". .ata mining
. Huntin# ". Hac%in#
ANS: *
24. HHHH is the con"uctin# of usiness o!er the (nternet.
a. R?' ". E'Cmme$"e
. A<A7 ". S*+
ANS: *
21. Tolerance #roups can e set in the SA7 system as sho0n elo0. A tolerance settin# is an e5ample of one
of the many HHHHHHHHHHHHH settin#s in the SA7 system.
ANS: *
22. (n"i!i"ual information systems for each functional area in a company are %no0n as
a. Sil! c. Tuers
. <a#pipes ". Separate" systems
ANS: A
2'. 2hich 6R7 pac%a#e is a popular soft0are choice for mana#in# human resources an" financial acti!ities
at uni!ersitiesG
a. SA7 c. +icrosoft ;ynamics
b. PepleS%t ". I.;. 6"0ar"s
ANS: <
2). 2hich of the follo0in# mo"ules in SA7 6R7 maintains pro"uction information.
a. S; ". PP
. ++ ". J+
ANS: *
2,. 2hich of the follo0in# mo"ule in SA7 is a set of tools that can automate the acti!ities in SA7 6R7G
a. 2$(%l- c. &inancial Accountin#
. *ontrollin# ". 7ro>ect System
ANS: A
1, | 7 a # e
2-. 2hat are soft0are that enales systems to e5chan#e "ata 0ithout complicate" soft0are lin%sG
a. A<A7 mo"ules c. 9e#acy systems
b. 2eb Se$&i"e! ". <est practices
ANS: <
1. (n SA7 6R7 the electronic e!i"ence of a transaction is calle" a HHHH.
a. trail ". au"it numer
. mar%er e. #"ument
c. ta#
ANS: 6
2. A customer calls up to fin" out ho0 much 1444 units of a pro"uct 0oul" cost. This is an e5ample of: HHHH
in the sales an" "istriution process.
a. P$e Sale! A"ti&itie! ". ;eli!ery an" <illin#
. Sales Or"er 7rocessin# e. 7ayment
c. (n!entory Sourcin#
ANS: A
'. A customer is #rante" a 14M price "iscount in a lar#e or"er. This is an e5ample of an acti!ity in: HHHH in
the sales an" "istriution process.
a. 7re Sales Acti!ities ". ;eli!ery an" <illin#
. Sale! O$#e$ P$"e!!ing e. 7ayment
c. (n!entory Sourcin#
ANS: <
). A customerCs or"er is chec%e" to see if it can e pro"uce" an" "eli!ere" y the re:ueste" "ate. This is an
e5ample of: HHHH in the sales an" "istriution process.
a. 7re Sales Acti!ities ". ;eli!ery an" <illin#
. Sales Or"er 7rocessin# e. 7ayment
". In&ent$y Su$"ing
ANS: *
,. A customerCs "ocuments are release" to the 0arehouse so that the #oo"s can e #athere", pac%e" an"
o5e". This is an e5ample of: HHHH in the sales an" "istriution process.
a. 7re Sales Acti!ities #. .eli&e$y an# /illing
. Sales Or"er 7rocessin# e. 7ayment
c. (n!entory Sourcin#
ANS: ;
-. A customerCs remittance causes *ash to e "eite" an" Accounts Recei!ale to e cre"ite". This is an
e5ample of: HHHH in the sales an" "istriution process.
a. 7re Sales Acti!ities ". ;eli!ery an" <illin#
. Sales Or"er 7rocessin# e. Payment
c. (n!entory Sourcin#
ANS: 6
1- | 7 a # e
.. (n SA7 6R7, the history of a transaction (such as a sales or"er) can e researche" y loo%in# at its HHHH.
a. Trail mi5 ". +aterial +aster ;ata
. Transaction in"e5 e. Sales +aster ;ata
c. ."ument %l-
ANS: *
/. 2hat %in" of soft0are can #i!e top mana#ement an o!er!ie0 of a companyCs complete relationship 0ith a
customerG
a. One to One +ar%etin# Soft0are
. Open Relationship Soft0are
c. ;enouement Soft0are
". Cu!tme$ Relatin!hip Management S%t-a$e
e. Supply *hain +ana#ement Soft0are
ANS: ;
1. (n the sales or"er process, there is a numer use" in the SA7 6R7 sales or"er that in a paper process
0oul" e pre=printe" on the sales "ocument, usually in se:uential numer or"er. (t3s assi#ne" y the
customer to the sales or"er. 2hat is this numerG
a. *ustomer (; c. +aterial Numer
. Pu$"ha!e O$#e$ 3umbe$ ". <illin# *o"e
ANS: <
14. Settin# prices for customers can e !ery comple5. SA7 helps y offerin# a control mechanism, calle"
HHHH, to "etermine ho0 much to char#e a #i!en customer for a #i!en pro"uct.
a. 7ricin# Kariance c. Cn#itin Te"hni4ue
. 7rice &i5in# ". &luctuation
ANS: *
11. The HHHH system communicates 0ith SA7 6R7, <2, an" A7O systems in "e!elopin# an" e5ecutin# its
plans.
a. 77O ". CRM
. SSA ". 8Dp
ANS: *
12. This soft0are can automatically route customers 0ho contact the company to a sales representati!e.
*ompanies can use this soft0are to forecast customer nee"s.
a. +ar%etin# encyclope"ias c. One=to=one mar%etin#
. Sales campai#n mana#ement #. Sale! %$"e autmatin
ANS: ;
1'. The SA7 6R7 system allo0s users to "efine !arious 0ays to #roup customers an" salespeople. These
#roups are calle" HHHH.
a. O$gani5atinal !t$u"tu$e! c. ;ocument flo0s
. +aster "ata ". Au"it trails
ANS: A
1. | 7 a # e
1). (n HHHH *R+, the soft0are an" e:uipment resi"e 0ith the *R+ pro!i"er@ it is not installe" in=house.
a. 2al%=up c. (nternet
b. On'#eman# ". 6R7
ANS: <
1,. 2hich of the follo0in# are enefits to *R+G
a. 9o0er costs
. Hi#her re!enue
c. (mpro!e" strate#y an" performance measurement
#. All % the ab&e
ANS: ;
1. A ma%e=to=stoc% pro"uction system is one 0here:
a. Item! a$e ma#e %$ in&ent$y in anti"ipatin % !ale! $#e$!
. (tems are pro"uce" to fill specific customer or"ers
c. (tems are assemle" for a specific customer or"er from an in!entory of components
". <oth a an" c
ANS: A
2. An une5pecte" increase in pro"uct "eman" can lea" to:
a. A "epletion of finishe" #oo"s in!entories
. A "epletion of ra0 materials in!entories
c. (ncrease" o!ertime an" transportation e5penses
". <oth a an"
e. All % the ab&e
ANS: 6
'. 2hat is the sales forecast for Iune of this year that &itter Snac%er shoul" useG
a. -,-2/ c. -,1',
b. 67)89 ". .,1)'
ANS: <
). 2hat is the ma5imum numer of cases they can pro"uce in the month if they sche"ule 0or%ers for
o!ertime on the 0ee%"ays onlyG
a. .,--- c. 1,,/2
b. *7)** ". 14,2)1
ANS: <
,. 2hat is the ma5imum numer of cases they can pro"uce in the month if they sche"ule 0or%ers for
o!ertime on 0ee%"ays an" Satur"aysG
a. .,--- c. 1,,/2
. 1,111 #. )+78:*
ANS: ;
1/ | 7 a # e
-. The pro"uction plan at &itter Snac%er calls for ),1') cases of snac% ars in Ianuary. (f there are 22 "ays
in the month, ho0 many cases of snac% ars shoul" e pro"uce" in a )="ay 0ee%G
a. 1// c. 1)4
b. 618 ". 14')
ANS: <
.. 2hat 7lanne" Or"ers 0ill the +R7 lo#ic create:
a. An $#e$ %$ ::7+++ unit! in Pe$i# 8
. An or"er for )),444 units in 7erio" '
c. An or"er for )),444 units for perio"s 2 an" '
". An or"er for //,444 units for perio" '
ANS: A
/. 2hat 0ill the On Han" in!entory e in 7erio" , after the system calculate" planne" or"ersG
a. 4 ". 97+;9
. ))4 ". 1),4'/
ANS: *
1. After +R7 is run in the SA7 R?' system:
a. The !t"(/$e4ui$ement! li!t an# MRP li!t a$e bth up#ate# an# !h- the !ame
in%$matin.
. The +R7 list is up"ate" ut the stoc%?re:uirements list is unaffecte".
c. The stoc%?re:uirements list is up"ate" ut the +R7 list is unaffecte"
". None of the ao!e.
ANS: A
14. (n "etaile" pro"uction sche"ulin#, lon#er pro"uction runs of a particular pro"uct:
a. (ncrease the a!ailale capacity y re"ucin# the fre:uency of setups.
. (ncreases finishe" #oo"s in!entory le!els.
c. Re"uces finishe" #oo"s in!entory le!els.
#. /th a an# b.
e. <oth a an" c.
ANS: ;
11. The or"er of the steps in the SA7 R?' pro"uction plannin# process are:
a. Sales &orecastin#, ;eman" +ana#ement, Sales an" Operations 7lannin#, +R7
. Sales &orecastin#, ;eman" 7lannin#, ;eman" +ana#ement, +R7
c. Sales an" Operations 7lannin#, Sales &orecastin#, +R7, ;eman" +ana#ement
#. Sale! F$e"a!ting7 Sale! an# Ope$atin! Planning7 .eman# Management7 MRP
ANS: ;
12. The pro"uction plan for &itter Snac%er calls for .444 cases for the snac% ar pro"uct #roup in Iune. (f the
snac% ar pro"uct #roup consists of NR8=A an" NR8=< ars 0ith the proportion .4M NR8=A ars an"
'4M NR8=< ars, ho0 many NR8=A ars shoul" e pro"uce" in IuneG
a. ,44 ". :<*+
. 2414 ". .444
11 | 7 a # e
ANS: *
1'. The costs it normally ta%es to manufacture a pro"uct, 0hich is calculate" from historical costs an" any
chan#es from that, are %no0n as:
a. Stan#a$# "!t! c. Nno0n costs
. Are!iate" costs ". 6stimate" costs
ANS: A
1). HHHH are "isa##re#ate" to #enerate "etaile" pro"uction sche"ules.
a. <ills of materials c. (nternet sales or"ers
. 7ro"uction runs #. Rugh'"ut plan!
ANS: ;
1,. 2hat is the pro"uction plan for all finishe" #oo"sG
a. MPS ' ma!te$ p$#u"tin !"he#ule c. 77R = pro"uction plannin# run
. JJR = :uality :uery run ". RDN = run
ANS: A
1-. 2hat process ans0ers the :uestion O2hat "o 0e nee" to or"er to pro"uce the pro"uct, an" 0hen "o 0e
nee" to or"er these ra0 materialsGP
a. S& = sales forecastin# ". MRP ' mate$ial! $e4ui$ement! planning
. SO7 = sales an" operations plannin# ". ;S = "etaile" sche"ulin#
ANS: *
1.. 2hat metric trac%s the numer of times a supplier meets the a#ree" upon "eli!ery "ateG
a. (nitial fill rate ". On'time pe$%$man"e
. (nitial or"er lea" time ". cash=to=cash cycle time
ANS: *
11. (n the follo0in# fi#ure, 0hat is <G
a. Sta$ting In&ent$y c. Sales &orecastin#
. ;etaile" Sche"ulin# ". +R7
ANS: A
24. (n the follo0in# fi#ure, 0hat is *G
a. Startin# (n!entory c. +R7
. Sales &orecastin# #. .etaile# S"he#uling
ANS: ;
21. (n the follo0in# fi#ure, 0hat is ;G
a. Startin# (n!entory c. Sales &orecastin#
. ;etaile" Sche"ulin# #. MRP
24 | 7 a # e
ANS: ; 7TS: 1 R6&: /'
22. 2hat sta#e of the pro"uction plannin# process splits &itter Snac%er3s monthly pro"uction plannin# !alues
into finer time perio"sG
a. Sales &orecastin# c. +R7
. <O+ #. .eman# Management
ANS: ;
1. 7erio"ically, companies summari$e the alances in the oo%s of account. This process is calle": HHHH.
a. *ost accountin# #. Cl!ing the b(!
. Account closure e. Statement 0rap=up
c. 7erio"ic closure
ANS: ;
2. Assume a company recor"s its transactions in an 6R7 system. On the shop floor, a pro"uction run has >ust
een finishe" an" the finishe" #oo"s are transferre" to the 0arehouse for stora#e. 2hat 0oul" a li%ely
0ay e to tell the 6R7 system aout this e!entG
a. The ba$ "#e! n the g#! a$e !"anne# a! they ente$ the -a$ehu!e. The #ata
gene$ate# i! pa!!e# t the ERP #ataba!e ele"t$ni"ally.
. A 7ro"uction cler% summari$es the "ata in an 65cel sprea"sheet an" sen"s the sprea"sheet
to Accountin#. An Accountin# cler% enters the "ata from the sprea"sheet into the 6R7
pro#ramCs +aterials an" 7ro"uction mo"ules.
c. The ar co"es on the #oo"s are scanne" as they come off the pro"uction line. The "ata
#enerate" is passe" to the 6R7 systemCs 7ro"uction mo"ule electronically. Then ar co"es
on the #oo"s are scanne" as they enter the 0arehouse. The "ata #enerate" is passe" to the
6R7 "ataase electronically.
ANS: A
'. A speciali$e" "ataase use" for "ata analysis purposes is calle" a: HHHH.
a. #ata -a$ehu!e ". "ocument pile
. "rill "o0n store e. "ata union
c. "ocument flo0
ANS: A
). 2hich financial statement sho0s account alances such as, cash hel", amounts o0e" to the company y
customers, the cost of ra0 materials an" finishe" #oo"s in!entoryG
a. (ncome statement c. Tolerance #roup
b. /alan"e !heet ". Qear en" report
ANS: <
-. HHHH are often allocate" ase" on total machine hours or total laor hours.
a. ;irect costs ". O&e$hea# "!t!
. 7lant costs ". +anma"e costs
ANS: *
21 | 7 a # e
.. (n HHHH, acti!ities associate" 0ith o!erhea" cost #eneration are i"entifie" an" then recor"s are %ept on the
costs an" on the acti!ities.
a. A/C7 a"ti&ity'ba!e# "!ting c. ROT+, run of the mill costin#
. <O*, ac%office costin# ". 7O*, plant operation costin#
ANS: A
/. 6ach transaction in SA7 6R7 #ets its o0n uni:ue numer. This is %no0n as: HHHH.
a. Dni:ueness numerin# c. Au"itin# co"es
b. ."ument %l- ". Dni:ue co"es
ANS: <
11. Another name for an income statement is a HHHH.
a. *re"it c. Sales
b. P$%it an# L!! ". Re!enue
ANS: <
12. (n an 6R7 system, the alance sheet an" 7E9 statements are: HHHH.
a. 8enerate" yearly ". Rep$t!
. Not a!ailale ". +o"ules
ANS: *
1'. 2hat is the a"!anta#e to cre"it mana#ement in SA7 6R7G
a. +ar%etin# an" Sales #et 0ee%ly reports c. 7ayments are poste" "aily
b. The #ata i! in $eal'time ". There is no a"!anta#e
ANS: <
1). 8i!en that the cost of manufacturin# NR8=A ars is A4..2 per ar, ho0 much "oes &S nee" to char#e to
ma%e a profit of A4.2,G
a. A1.44 ". 0+.*6
. A4.11 ". A1.2,
ANS: *
1,. &or &itter Snac%er, the sum of "irect materials, pro"uction o!erhea", an" "irect laor is the HHHH.
a. CO=M ' "!t % g#! manu%a"tu$e# c. *O87 = cost of #oo"s pro"uce"
. *O8S = cost of #oo"s sol" ". *O8S = cost of #oo"s shippe"
ANS: A
1-. The follo0in# screen in SA7 is an e5ample of HHHH.
1.. The t0o %ey pieces of information for a cost analysis is the "irect material an" the "irect HHHH.
a. Lab$ c. ;ri!er
22 | 7 a # e
. O!erhea" ". Sellin# cost
ANS: A
1/. (f &itter Snac%er3s cost of ma%in# a case of ars is A241./2, an" there are 2) ars to a o5 an" 12 o5es to
a case, ho0 much money "oes it cost &itter Snac%er to ma%e each in"i!i"ual arG
a. A1..)1 c. A/..)
. A1.44 #. 0+.68
ANS: ;
1. The tas%s associate" 0ith mana#in# a companyCs 0or%force is no0 %no0n as HHHH.
a. Human "apital management c. 2or%force mana#ement
. Resource mana#ement ". Hirin# mana#ement
ANS: A
2. The >o of mana#in# salary enefits pro!i"e" to each employee an" confirmin# that the proper enefits
are "isurse" to ne0 an" current employees falls un"er the HHHH "epartment.
a. Accountin# an" &inance c. (n"i!i"ual
b. Human Re!u$"e! ". A"ministrati!e
ANS: <
'. To recor" employee 0or%in# times, SA7 6R7 uses HHHH.
a. 7unche" car"s ". CATS >"$!! appli"atin time !heet!?
. R&(;s ". +ultiple "ataases
ANS: *
). The parts of an employeeCs pay that is comprise" of ase pay, onuses, #ratuities, o!ertime, sic% pay , an"
!acation allo0ances are %no0n as HHHH.
a. 7ayroll run c. Koluntary "e"uctions
. Statutory "e"uctions #. Remune$atin element!
ANS: ;
,. HHHH are s%ills or ailities associate" 0ith a position, 0hile HHHH are s%ills or ailities associate" 0ith a
specific employee.
a. Jualifications, re:uirements c. ;uties, tas%s
b. Re4ui$ement!7 4uali%i"atin! ". Tas%s, "uties
ANS: <
-. A plan for replacin# %ey employees is %no0n as a HHHH.
a. ;uty roster ". Su""e!!in plan
. Replacement circular ". Reincarnation stu"y
ANS: *
.. SA7Cs 6R7 helps the a"ministration of employees ta%in# time off un"er a #o!ernment act that allo0s
compensation for family an" me"ical prolems. This act, passe" in 111', is the HHHH.
a. &(A ". FMLA
. JOTA ". 7RO<A
2' | 7 a # e
ANS: *
/. 2hich functional part of the or#ani$ation communicates chan#es in salaries, enefits an" policies to
employeesG
a. Sales an" +ar%etin# c. Accountin# an" &inance
. Supply *hain +ana#ement #. Human Re!u$"e!
ANS: ;
1. 2hat is the source of &itter Snac%er3s prolems 0ith Human ResourcesG
a. (naccurate information c. (nconsistent information
. Out=of="ate information #. All % the ab&e
ANS: ;
14. 2hat is the name of the #roup of can"i"ates selecte" to e inter!ie0e" y &itter Snac%er for a particular
positionG &or e5ample, assume 24 applicants applie" an" only ' 0ere selecte" to e inter!ie0e".
a. Sh$t li!t c. &inal Three
. Select #roup ". Applicants
ANS: A
11. 2hat "oes the acronym, *pH stan" forG
a. *ost per Health *are 6mployee c. *ost per Hea"
b. C!t pe$ Hi$e ". *ost per Healthy 2or%er
ANS: <
12. (n &eruary 244., a fe"eral appeals court appro!e" class=action status for a "iscrimination la0suit
rou#ht y se!en 0omen a#ainst the retailer, HHHH.
a. 2al'Ma$t c. Sears
. Tar#et ". N=+art
ANS: A
1'. The process of "eterminin# each employee3s pay is calle" a HHHH.
a. Pay$ll $un c. *ash=out
. 2ee%ly roun"=up ". Remunerations session
ANS: A
1). The SA7 6R7 system e!aluates the input "ata to payroll an" notes any "iscrepancies in a(n) HHHH.
a. 7ayroll report c. ;iscrepancy list
. E$$$ lg ". Off=tar#et list
ANS: <
1,. An out#ro0th of the HHHH (reference" in *hapter ,) is that companies must account for the e5pecte" costs
that occur as a result of lon#=term incenti!es such as the e5ercisin# of stoc% options.
a. (ncome Statement c. *onsoli"ate" statements
. <alance Sheet #. Sa$bane!'O@ley A"t
1. A #raphical representation of a usiness process is %no0n est as a HHHH.
2) | 7 a # e
a. Su>ect ". Fl-"ha$t
. +orh ". ;ia=process
ANS: *
2. 2hen "oin# process mappin#, one of the most important tas%s is to "efine the HHHH. These "efine 0hich
acti!ities are to e inclu"e" in the process.
a. Scales c. 9e#en"s
b. P$"e!! bun#a$ie! ". Scopes
ANS: <
'. <eyon" the simple tools of flo0chartin#, a helpful tool calle" HHHH allo0s one to "escrie a usiness
process in #reater or less "etail "epen"in# on the tas% at han".
a. Hie$a$"hi"al m#eling c. ;etail focuse" chartin#
. ;rill "o0n sta#in# ". +a#nifyin# #lass chartin#
ANS: A
). A "eployment flo0chart is also %no0n as a HHHH.
a. 6!ent process chain flo0chart c. 6R7 flo0chart
b. S-imlane %l-"ha$t ". <est practices flo0chart
ANS: <
,. (n !alue analysis, 0hich of the follo0in# acti!ities shoul" e eliminate"G
a. Real !alue ". 3 &alue
. <usiness !alue
ANS: *
-. (n !alue analysis, 0hich of the follo0in# acti!ities is "efine" as !alue for 0hich the customer is 0illin# to
payG
a. Real &alue c. No !alue
. <usiness !alue
ANS: A
.. 2hich soft0are pro#ram automates the e5ecution of usiness processesG
a. SA7 2i$ar" ". 2$(%l-
. ASA7 ". S0imlane
ANS: *
COMPLETIO3
1. HHHHHHHHHHHHHHHHHHHH pro#rams are core soft0are use" y companies to coor"inate information in
e!ery area of the usiness.
ANS:
6nterprise Resource 7lannin# (6R7)
2, | 7 a # e
2. A collection of acti!ities that ta%es one or more %in"s of input an" creates an output that is of !alue to the
customer is calle" a HHHHHHHHHHHHHHHHHHHH.
ANS:
usiness process
'. The usiness functions of financial accountin#, cost allocation an" control, plannin# an" u"#etin#, an"
cash=flo0 mana#ement ta%e place in the HHHHHHHHHHHHHHHHHHHH functional area of operation.
ANS:
Accountin# an" &inance (A?&)
7TS: 1 R6&: 2
). One e5ample of the usiness function that happens in the human resource area of operation 0oul" e
HHHHHHHHHHHHHHHHHHHH.
ANS:
Recruitin# an" hirin#
Trainin#
7ayroll
<enefits
8o!ernment compliance
,. An HHHHHHHHHHHHHHHHHHHH inclu"es the computers, people, proce"ures, an" soft0are that store,
or#ani$e, an" "eli!er information.
ANS:
(nformation systems ((S)
-. (nformation systems "esi#ne" so that functional areas share "ata are calle" HHHHHHHHHHHHHHHHHHHH.
ANS:
inte#rate" information systems
(inte#rate" (S)
.. A shortfall of ra0 materials is %no0n as a HHHHHHHHHHHHHHHHHHHH.
ANS: Stoc%out
/. To a!oi" stoc%outs, manufacturers mi#ht carry e5tra ra0 materials %no0n as HHHHHHHHHHHHHHHHHHHH.
ANS: Safety stoc%
1. HHHHHHHHHHHHHHHHHHHH states that the numer of transistors on a computer chip "oules e!ery 1/
months.
2- | 7 a # e
ANS: +oore3s 9a0
2. 2hen the net0or%3s capacity can e e5pan"e" y the a""ition of a ser!er, it3s calle"
HHHHHHHHHHHHHHHHHHHH.
ANS:
Scalale
Scalaility
'. The technolo#y to hol" "ata in an or#ani$e" fashion, an" to retrie!e that "ata easily, is the
HHHHHHHHHHHHHHHHHHHH.
ANS:
"ataase mana#ement system (;<+S)
). HHHHHHHHHHHHHHHHHHHH soft0are allo0s a plant mana#er to plan pro"uction an" ra0 materials
re:uirements y 0or%in# ac%0ar" from the sales forecast.
ANS: +R7
,. The pre"iction of future sales is the HHHHHHHHHHHHHHHHHHHH.
ANS: sales forecast
-. HHHHHHHHHHHHHHHHHHHH is the "irect computer=to=computer e5chan#e of stan"ar" usiness "ocuments.
ANS: 6lectronic "ata interchan#e (6;()
.. SA7 is the are!iation for HHHHHHHHHHHHHHHHHHHH.
ANS: Systems Analysis an" 7ro#ram ;e!elopment
/. (n HHHHHHHHHHHHHHHHHHHH, thir"=party soft0are companies are encoura#e" to "e!elop a""=on soft0are
pro"ucts that can e inte#rate" 0ith e5istin# soft0are.
ANS: open architecture
1. Ol" systems are %no0n as HHHHHHHHHHHHHHHHHHHH.ANS: le#acy systems
14. SA73s i##est competitor is HHHHHHHHHHHHHHHHHHHH.ANS: Oracle
11. (n an 6R7 system, all mo"ules access the HHHHHHHHHHHHHHHHHHHH.ANS: central "ataase
12. After a company chooses its ma>or mo"ules, it chooses from an assortment of HHHHHHHHHHHHHHHHHHHH
options.
ANS: confi#uration
2. | 7 a # e
1'. R?'3s "esi#n incorporates HHHHHHHHHHHHHHHHHHHH, 0hich means that R?' "esi#ners choose the est, most
efficient 0ays in 0hich usiness processes shoul" e han"le".
ANS: est practices
1). SA73s internal pro#rammin# lan#ua#e is HHHHHHHHHHHHHHHHHHHH.
ANS: A<A7
1,. An assessment of an in!estment3s pro>ect !alue that is calculate" y "i!i"in# the !alue of the pro>ect3s
enefits y the !alue of the pro>ect3s cost is %no0n as a(n) HHHHHHHHHHHHHHHHHHHH.
ANS: RO(
1-. The statistical an" lo#ical analysis of lar#e sets of transaction "ata is %no0n as HHHHHHHHHHHHHHHHHHHH.
ANS: "ata minin#
1.. HHHHHHHHHHHHHHHHHHHH is the con"uctin# of usiness o!er the (nternet.
ANS: 6=commerce
1. The #oal of HHHHHHHHHHHHHHHHHHHH is to pro!i"e a Osin#le face to the customer.P
ANS:
*ustomer Relationship +ana#ement soft0are
(*R+ soft0are)
2. 2ith HHHHHHHHHHHHHHHHHHHH, the R?' system automatically chec%s all facilities an" "etermines the most
cost=efficient facility to use to meet the customer3s re:uest in terms of or"erin# an" "eli!erin# #oo"s.
ANS:
8loal AT7
(8loal A!ailale=To=7romise)
). (n the follo0in# "ia#ram sho0in# OTa%in# an Or"er in SA7 6R7P, 0hat is <G HHHHHHHHHHHHHHHHHHHH
ANS: 7O Numer
,. (n the follo0in# "ia#ram OTa%in# an Or"er in SA7 6R7P, 0hat is *G HHHHHHHHHHHHHHHHHHHH
ANS: Re:uire" ;eli!ery ;ate
-. (n the follo0in# "ia#ram OTa%in# an Or"er in SA7 6R7P, 0hat is ;G HHHHHHHHHHHHHHHHHHHH
ANS: +aterial an" Or"er :uantity
2. HHHHHHHHHHHHHHHHHHHH refers to the process of "eterminin# pro"uction :uantities (for ra0 materials
pro"uce" in=house) an" or"er :uantities (for purchase" items).
2/ | 7 a # e
ANS: 9ot si$in#
'. Any usiness e!ents that occur et0een companies an" their susi"iaries are %no0n as
HHHHHHHHHHHHHHHHHHHH.
ANS: (ntercompany transactions
). 2ith a properly confi#ure" an" mana#e" 6R7 system, there are "irect lin%s et0een the company3s
HHHHHHHHHHHHHHHHHHHH an" in"i!i"ual transactions that ma%e up the statements, so that frau" an" ause
can e "etecte" more easily.
ANS: financial statements
21 | 7 a # e