ch01(2)

(1)

Chapter 1

Chapter 1 Introductio

Introduction

n to

to Business Processes

Business Processes

Multiple Choice Questions

1.

1. WhicWhich term refeh term refers to busrs to business piness procesrocesses thases that are not exet are not executed by a sicuted by a single gngle group or funroup or functionction??

aa.. SSiillo Eo Effffeecctt b.

b. Cross-FunctionalCross-Functional c.

c. FuFuncnctitiononal Stal Struructctururee d.

d. EnEnteterprpririse Sse Syyststememss e.

e. OrOrgaganiniaatitiononal Sal Strtrucuctuturere

Answer

Answer! b! b DifficultyDifficulty!! EaEasysy Page Reference:Page Reference: 11 Section:

Section: "he Functional Organiational Structure"he Functional Organiational Structure Practice:Practice:

#.

#. WhicWhich term referh term refers to a system is to a system in $hich $on $hich $or%ers comr%ers complete thplete their tas%eir tas%s in sepas in separate deprate departmeartmentsnts $ithout regard to the conse&uences for the other components of the process

$ithout regard to the conse&uences for the other components of the process ??

aa.. EE''( ( EEffffeecctt b.

b. Cross-FunctionalCross-Functional c.

c. FuFuncnctitiononal Stal Struructctururee d.

d. EnEnteterprpririse Sse Syyststememss ee.. SSiillo Eo Effffeecctt

Answer

Answer! e! e DifficultyDifficulty! ! EaEasysy Page Reference:Page Reference: ## Section:

Section: "he Functional Organiational S"he Functional Organiational Structure! "he Silo tructure! "he Silo EffectEffect Practice:Practice:

).

). WhWhich syich system sstem suppupportorts buss busineiness prss proceocessesses ends end toto end?end?

a.

a. *a*ananagegemement nt SySyststemem b.

b. +ccounting Syst+ccounting Systemem c.

c. EnEnteterprpririse se SySyststemem d.

d. FuFuncnctitiononal al StStruructctururee e.

e. ,,ococumumenent St Syyststemem

Answer

Answer! c! c DifficultyDifficulty! ! *ed*ediumium Page Reference:Page Reference: ## Section:

(2)

. Which of the follo$ing statements about business processes is true?

a. "hey are executed across multiple functions. b. "hey are initiated by some type of trigger.

c. "hey in/ol/e multiple steps. d. +ll of the abo/e

e. 0one of the abo/e

Answer: d Difficulty: *edium Page Reference:  Section: usiness (rocesses

2. Which term represents a set of tas%s or acti/ities that produce desired outcomes?

a. usiness (rocess b. "rigger

c. Outcome

d. Enterprise 'esource (lanning e. 0one of the abo/e

Answer! a Difficulty! Easy Page Reference:  Section: usiness (rocesses Practice:

3. 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. *aterial (lanning b. (rocurement (rocess

c. (roduction (rocess d. Fulfillment (rocess

e. 5ifecycle ,ata *anagement

Answer! b Difficulty! *edium Page Reference: 2 Section: usiness (rocesses Practice: es

6. Which process in/ol/es the actual creation of the products?

Answer! c Difficulty! *edium Page Reference: 2 Section: usiness (rocesses Practice:

(3)

7. Which process uses historical data and sales forecasts to plan $hich materials $ill be procured and produced?

Answer! a Difficulty! *edium Page Reference! 2 Section: usiness (rocesses Practice: es

8. Which process supports the design and de/elopment of products from the initial product idea stage through the discontinuation of the product?

Answer! e Difficulty! *edium Page Reference! 2 Section: usiness (rocesses Practice:

19. Which process trac%s the financial impact of process steps $ith the goal of meeting legal reporting re&uirements?

a. :uman Capital *anagement ;:C*< b. (ro=ect *anagement

c. Financial +ccounting

d. *anagement +ccounting or Controlling ;CO< e. 0one of the abo/e

Answer! c Difficulty! *edium Page Reference! 3 Section: usiness (rocesses Practice:

11. 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?

Answer! b Difficulty! *edium Page Reference! 3 Section: usiness (rocesses Practice:

(4)

1#. Which process focuses on people $ithin an organiation and includes functions such as recruiting4 hiring4 training4 and benefits management?

Answer! a Difficulty! ,ifficult Page Reference! 3 Section: usiness (rocesses Practice:

1). What is the final step of the procurement process?

a. >n/oice

b. (urchase 'e&uisition c. (urchase Order d. (ayment

e. 0one of the abo/e

Answer! d Difficulty! Easy Page Reference! 3 Section: usiness (rocesses! (rocurement-uy Practice:

1. What steps are in/ol/ed in the accounting portion of the procurement process?

a. 'ecei/ing the materials and the in/oice

b. Creating the purchase re&uisition and sending payment c. Creating and sending the purchase order

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

Answer! e Difficulty! ,ifficult Page Reference! 6 Section: usiness (rocesses! (rocurement-uy Practice:es

12. What is the first step of the production process?

a. +uthorie (roduction b. 'e&uest (roduction

c. Create (roduct

d. 'ecei/e Finished oods e. >ssue 'a$ *aterials

Answer! b Difficulty! Easy Page Reference! 6 Section: usiness (rocesses! (rocurement-*a%e Practice: es

(5)

13. What function does the $arehouse perform in the fulfillment process?

a. (repares and sends the shipment to the customer

b. Communicates data related to the order to other parts of the organiation c. "rac%s the order

d. 0otifies the customer e. 0one of the abo/e

Answer! a Difficulty! Easy Page Reference! 7 Section: usiness (rocesses! (rocurement-*a%e Practice:es

16. @@@@@@@@@@@ is concerned $ith matching the demand for materials in the organiation $ith the supply.

a. usiness (lanning b. "he Silo Effect

c. (ro=ect *anagement d. *aterial (lanning e. 0one of the abo/e

Answer! d Difficulty! *edium Page Reference! 7 Section: usiness (rocesses! *aterial (lanning-(lan Practice:

17. Which of the follo$ing is concerned $ith the storage and mo/ement of materials?

a. usiness (lanning b. Silo Effect

c. (ro=ect *anagement d. *aterial (lanning

e. >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. usiness (lanning

b. 5ifecycle ,ata *anagement c. (ro=ect *anagement

d. *aterial (lanning e. 0one of the abo/e

+ns$er! b ,ifficulty! *edium (age 'eference! 19 Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign Practice:

(6)

#9. @@@@@@@@@@@@@ pro/ides tools to manage and store documents securely and to %eep trac% of the multiple /ersions of these documents?

a. ,ocument *anagement b. Enterprise *anagement

c. (ro=ect *anagement d. *aterial (lanning e. 0one of the abo/e

+ns$er! a ,ifficulty! *edium (age 'eference! 19 Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign Practice:

#1. :o$ does > lobal sell its merchandise?

a. ,irectly to customers

b. Aia a net$or% of specialied dealers c. Aia the >nternet

d. +ll of the abo/e e. 0one of the abo/e

+ns$er! b ,ifficulty! *edium (age 'eference! 1) Section: lobal icycle >ncorporated ;>< Practice: es

##. Which of the follo$ing statements about S+( 'B) is true?

a. >t supports a single function or department b. >t is an end-to-end enterprise system

c. Sharing data bet$een departments is problematic d. 0one of the abo/e

+ns$er! b ,ifficulty! *edium (age 'eference! 12 Section: :o$ to use this boo%! S+( Soft$are and Certification 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

(7)

h. internships i. finance =. mar%eting

Answer! a4 b4 d4 e Difficulty! *edium Page Reference: 1 Section: "he Functional Organiational Structure Practice: es

#. Which of the follo$ing are steps $ithin a generic business process of an organiation?

a. (ayment b. "rigger

c. Shipment d. Outcome e. Confirmation

Answer! b4 d Difficulty! ,ifficult Page Reference: Section: usiness (rocesses Practice:

). Which processes ha/e an impact on an organiations finances?

f. Financial accounting processes g. (ro=ect management processes

h. *anagement accounting or controlling processes i. *aterial planning process

=. (rocurement process

Answer! a4 c Difficulty! *edium Page Reference: 3 Section: usiness (rocesses Practice: es

. Which processes focus primarily on people and pro=ects?

a. Financial accounting processes b. (rocurement process

c. (roduction process

d. :uman capital management processes e. (ro=ect management processes

Answer! d4 e Difficulty! *edium Page Reference: 3 Section: usiness (rocesses Practice:

(8)

2. Which of the follo$ing are components of the procurement process? a. Warehouse b. (urchasing c. Sales d. Operations e. +ccounting

Answer! a4 b4 e Difficulty! *edium Page Reference! 6 Section: usiness (rocesses! (roduction-*a%e Practice: es

3. Which of the follo$ing are components of the production ;ma%e< process?

a. Sales b. Operations

c. Warehouse d. +ccounting e. (roduction

Answer! c4 e Difficulty! *edium Page Reference! 6 Section: usiness (rocesses! (roduction-*a%e Practice:

6. Which of the follo$ing are components of the fulfillment ;sell< process?

a. Sales b. Operations

c. Warehouse d. +ccounting e. (roduction

Answer! a4 c4 d Difficulty! *edium Page Reference! 7 Section: usiness (rocesses! Fulfillment-Sell Practice:

7. "he term materials encompasses $hich of the follo$ing?

a. (roducts b. Components

c. (arts

d. +nything used in an organiation e. +ccounting

Answer! a4 b4 c4 d Difficulty! *edium Page Reference! 7 Section: usiness (rocesses! Fulfillment-Sell Practice:

8. Which of the follo$ing acti/ities are related to the production process?

(9)

b. Store materials c. 5ocate *aterials d. >ssue *aterials e. '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. >ssue *aterials b. 'ecei/e *aterials

c. (repare for Storage d. Store *aterials e. 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. 5ocate *aterials b. (repare Shipment

c. (repare for Storage d. Store *aterials e. 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. Engineering b. *ar%eting

c. +ccounting d. (roduction e. Sales

Answer! a4 b4 d Difficulty! *edium Page Reference! 19 Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign Practice:

1). Which departments ta%e part in the conception of an idea?

a. +ccounting b. (roduction

(10)

c. Engineering d. Sales

e. *ar%eting

Answer! c4 e Difficulty! *edium Page Reference! 19 Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign Practice:

1. >n $hich elements of the lifecycle data management process does mar%eting play a role?

a. ,esign

b. Concei/e product ideas c. *a%e

d. *ar%eting D ser/ice e. ,iscontinue product

Answer! c4 d4 e Difficulty! Easy Page Reference! 19 Section: usiness (rocesses! 5ifecycle ,ata *anagement-,esign Practice:

12. >n $hich components of the asset management process is production in/ol/ed?

a. Settlement

b. (erform maintenance c. +uthorie maintenance d. 'e&uest maintenance e. (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. (erform ser/ice

b. Create ser/ice re&uest c. Settlement

d. +uthorie ser/ice e. 'e&uest maintenance

Answer! b4 d Difficulty! *edium Page Reference: 11 Section: usiness (rocesses! :uman Capital *anagement-(eople Practice:

16. What part of the pro=ect management process is $ithin the /arious functional areas?

a. udgeting b. Execution c. Settlement

(11)

d. (lanning

Answer! a4 b4 c4 d Difficulty! *edium Page Reference! 1# Section: usiness (rocesses! (ro=ect *anagement-(ro=ects Practice:es

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

a. ,eluxe and professional touring bi%es b. *en and $omens off-road bi%es

c. *otor bi%es d. 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. Supports a single function or department b. Executes e/ery process from start to finish

c. Consolidates process data in a single database

d. Enables users to /ie$ the status of a process in real time

+ns$er! b4 c4 d ,ifficulty! *edium (age 'eference! 12 Section: :o$ to use this boo%! S+( Soft$are and Certification Practice: es

rue!"alse

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

Answer! "rue Difficulty! Easy

Page Reference: 1

Section: "he Functional Organiational Structure Practice:

#. 5osing sight of the big picture is commonly referred to as the silo effect.

Answer! "rue Difficulty! *edium

Page Reference: #

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

(12)

Answer! False Difficulty! *edium Page Reference: 

Section: usiness (rocesses 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.

Page Reference: 

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.

Page Reference: 2

6. "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 Difficulty! *edium

Page Reference: 2

7. "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.

(13)

Reference: 2

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

Answer! False Difficulty! ,ifficult

Page Reference: 3

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

Page Reference: 3

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

11. Within the production process4 the issuing of ra$ materials ta%es place in the $arehouse.

Answer! "rue Difficulty! ,ifficult Page Reference: 6

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

1#. *aterials encompass all the products4 components4 and parts that are used in an organiation.

Page Reference: 7

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

1). 5ead time is the time bet$een placing the order and recei/ing confirmation that the item has been shipped.

Page Reference: 7

1. "he purpose of material planning is to match supply $ith demand.

Page Reference: 7

(14)

12. >nsufficient supply results in a situation called stoc% out.

Page Reference: #

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

Answer! False Difficulty! ,ifficult

Page Reference: 7

16. Forecasts of finished goods are determined by data from material planning.

Page Reference: 8

17. 5arge $arehouses do not need to mo/e items as &uic%ly and efficiently as smaller $arehouses.

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.

(15)

Reference: 19

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

#1. "he final stage of asset management and customer ser/ice is the authoriation maintenance stage.

Page Reference: 11

##. "he final stage of the customer ser/ice process is the settlement stage.

Page Reference: 11

#). + pro=ect is permanent in nature and is typically associated $ith smaller4 simpler pro=ects.

Page Reference: 11

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

#. ,uring the planning phase of a pro=ect the scope of the pro=ect is defined and the milestones and deadlines are established.

Page Reference: 1#

#2. (ro=ects rely on resources located in and $or% performed in other processes.

Page Reference: 1#

#3. Common reports of financial accounting include income statement4 profit and loss4 and balance sheet.

(16)

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.

Page Reference: 1)

#7. +sset accounting is concerned $ith trac%ing financial data related to assets such as machinery and cars.

Page Reference: 1)

#8. +ccounts recei/able is used to trac% money that is o$ed to /endors.

Page Reference: 1)

)9. *anagement accounting helps an organiation trac% costs and re/enues to assess its profitability

Page Reference: 1)

Section: usiness (rocesses! *anagement +ccounting-"rac% for >nternal 'eporting Practice: