True/False Questions Section 1 _____ 1. One consequence of ...

True/False QuestionsSection 1_____ 1. One consequence of globalization is increased competition._____ 2. Due to globalization, organizations often locate parts of their operations indifferent countries._____ 3. Due to globalization, organizations tend to locate their operations in onecountry._____ 4. The information revolution refers to the increased use of communication andcomputer technologies to create, deliver, and use information._____ 5. The information revolution has a very limited role in globalization._____ 6. Information and communication technologies help organization coordinate theirglobal operations._____ 7. People in organizations are becoming more dependent on information._____ 8. Knowledge workers are those who work in information systems departmentsof global companies._____ 9. Knowledge workers exist in all parts of an organization._____ 10. Structured information is well defined and its source is known._____ 11. Unstructured information is well defined and its source is known._____ 12. Task workers perform routine, well defined work.1

_____ 13. Functional Information Systems only support the activities of specific areas ofthe business._____ 14. In a manual (paper-based) process, information is communicated betweenfunctional areas using an enterprise system._____ 15. The silo effect refers to the integrated and the cross-functional nature ofbusiness processes._____ 16. The silo effect refers to be losing sight of the big picture of the process andbeing narrowly focused on a task.Section 2_____ 1. In the client server architecture the data, applications and presentation are allincluded in one system._____ 2. CRM systems are intra-organizational systems._____ 3. SRM systems are intra-organizational systems._____ 4. CRM systems link a company with its suppliers._____ 5. CRM systems link a company with its customers._____ 6. PLM systems are concerned with purchasing materials from suppliers._____ 7. PLM systems are concerned with managing a product’s life cycle._____ 8. Customer data is an example of master data in an ES._____ 9. Customer data is an example of transaction data in an ES._____ 10. Vendor data is an example of organizational data in an ES.2

_____ 11. Vendor data is an example master data in an ES._____ 12. Dates, times, and locations are examples of organizational data in an ES._____ 13. Dates, times, and locations are examples of transaction data in an ES.Section 3_____ 1. The packing list is part of the invoice receipt step in the Purchasing Process._____ 2. The packing list is part of the receive goods step in the Purchasing Process._____ 3. A three-way match is necessary before payment is made._____ 4. A packing list is associated with the warehouse in the procurement process._____ 5. A packing list is associated with accounting in the procurement process._____ 6. An invoice is associated with accounting in the procurement process._____ 7. An invoice is associated with purchasing in the procurement process._____ 8. A purchase order is associated with purchasing in the procurement process._____ 9. A purchase order is associated with sales in the procurement process._____ 10. A purchase requisition is associated with purchasing in the procurementprocess._____ 11. A purchase requisition is associated with the warehouse in the procurementprocess.3

_____ 12. A purchase requisition is a commitment to purchase the specified quantity ofthe specified material._____ 13. A purchase order is a commitment to purchase the specified quantity of thespecified material._____ 14. A purchase requisition is a document that identifies the material needed, thequantity needed, and the date it is needed._____ 15. A purchase order is a document that identifies the material needed, thequantity needed, and the date it is needed._____ 16. A goods receipt is a document that verifies that the specified goods havebeen received._____ 17. An invoice is a document that verifies that the specified goods have beenreceived._____ 18. A packing list is a document that provides details about the materialscontained in the shipment._____ 19. A purchase order is a document that provides details about the materialscontained in the shipment._____ 20. One purchase requisition can be converted to more than one purchase order._____ 21. One purchase requisition can be converted to only one purchase order._____ 22. Under the term “FOB shipping point,” the buyer “owns” the material once itis shipped._____ 23. Under the term “FOB shipping point,” the seller “owns” the material once it isshipped.4

Section 4_____ 1. The fulfillment process often begins when a customer sends an inquiry._____ 2. The fulfillment process often begins when a supplier sends an inquiry._____ 3. The fulfillment process often begins when a supplier sends a quotation._____ 4. The fulfillment process often begins when a customer sends a quotation._____ 5. The sales department creates the customer purchase order._____ 6. The sales department creates the sales order._____ 7. A picking document includes the storage location of the materials to bepicked._____ 8. A packing list includes the storage location of the materials to be packed._____ 9. When using an ES, much of the data needed to create a customer invoice isautomatically obtained from data previously stored in the system._____ 10. When using an ES, much of the data needed to create a customer invoiceis manually entered._____ 11. When creating customer invoices, the person responsible can retrieve a listof orders that need to be acted on. This list is called a billing due list._____ 12. When creating customer invoices, the person responsible can retrieve a listof orders that need to be acted on. This list is called an order due list._____ 13. When using an ES, it is very difficult to obtain information about the statusof a customer order.5

_____ 14. Sell-from-stock involves fulfilling customer orders directly from the company’sinventory or finished goods._____ 15. Configure-to-order involves fulfilling customer orders directly from thecompany’s inventory or finished goods._____ 16. Configure-to-order involves taking a standard or base model of a product andthen configuring it to meet the customer's special needs by adding either special optionsor add-on parts._____ 17. Sell-from-stock involves taking a standard or base model of a product andthen configuring it to meet the customer's special needs by adding either special optionsor add-on parts._____ 18. The only time a financial impact is made on the income statement in thefulfillment process is when you send the shipment._____ 19. A financial impact is not made on the income statement in the fulfillmentprocess when you send the shipment._____ 20. When you sent the shipment two transactions happen that affect the financialimpact of the fulfillment process._____ 21. The accounts receivable account goes up when a shipment is sent._____ 22. The accounts receivable account goes up when an invoice is sent._____ 23. The cost of goods sold account goes up when a shipment is prepared._____ 24. The cost of goods sold account goes up when shipment is sent.Section 5_____ 1. A bill of materials identifies the steps needed to produce a product.6

_____ 2. Routings identify the steps needed to produce a product._____ 3. A bill of materials is the list of materials and quantities needed to produce aproduct._____ 4. Routings are the list of materials and quantities needed to produce a product._____ 5. The work of creating products is done in work centers._____ 6. The work of shipping products is done in work centers._____ 7. Under a make-to-stock strategy, the production process is triggered by aneed to increase inventory._____ 8. Under a make-to-order strategy, the production process is triggered by aneed to increase inventory._____ 9. Under a make-to-order strategy, the production process is triggered by acustomer order._____ 10. Under a make-to-stock strategy, the production process is triggered by acustomer order._____ 11. A material withdrawal slip is created in the warehouse when the plannedorder is converted into a production order._____ 12. A material issue slip is created in the warehouse when the planned order isconverted into a production order._____ 13. A material issue slip is created in the warehouse after you convert theplanned order into a production order.7

_____ 14. A material receipt slip is created in the warehouse after you confirmproduction._____ 15. In the production process, a production order is used to track the progressof the order._____ 16. In the production process, a planned order is used to track the progress ofthe order._____ 17. In the production process, a planned order is used to request that thecompany produce a specified quantity of goods._____ 18. In the production process, a production order is used to request that thecompany produce a specified quantity of goods._____ 19. When using an ES, paper documents are a critical means of capturing andstoring data generated during process steps._____ 20. When using an ES, paper documents are not a critical means of capturingand storing data generated during process steps._____ 21. The planned order is created by the warehouse._____ 22. The planned order is created by production._____ 23. The production order is created by production._____ 24. The production order is created by the warehouse.Section 6_____ 1. Procurement, fulfillment, and production are examples of intra-companyprocesses.8

_____ 2. Procurement, fulfillment, and production are examples of inter-companyprocesses._____ 3. Supply chain management (SCM) and customer relationship management(CRM) are examples of inter-company processes._____ 4. Supply chain management (SCM) and customer relationship management(CRM) are examples of intra-company processes._____ 5. The integrated process essentially includes all the steps in the fulfillment,procurement, and production processes._____ 6. In the integrated process, the steps related to procurement are triggered by aneed to increase inventory of finished products._____ 7. In the integrated process, the steps related to fulfillment are suspended whenthere are insufficient quantities of the needed finished product in stock._____ 8. In the integrated process, the steps related to the production process aresuspended when there are insufficient quantities of the needed finished product instock._____ 9. In the integrated process, the steps related to the production process aresuspended when there are insufficient quantities of the needed raw materials in stock._____ 10. In the integrated process, a make-to-stock strategy is employed by SSB.9