SCCMT 468 Exam 2

Which of the following is a key process in financial accounting?

• accounts receivable accounting

Which process is used to manage money owed by customers for goods and services purchased from the company?

• accounts receivable accounting

Which process is concerned with recording data associated with bank statements?

• bank ledger accounting

Which term refers to an ordered listing of accounts that comprise a company's general ledger?

• Chart of accounts (COA)

Which term represents what a company owns, such as cash, inventory of materials, and buildings?

• assets

Which term represents the monies a company earns by selling its products and services?

• revenue

Which term represents the costs associated with creating and selling products and services?

• expenses

Which term is a general ledger account that consolidates data from a group of related sub-ledger accounts?

• reconciliation account

Which of the following is used to implement multiple ledgers and use each ledger for different purposes?

• parallel accounting

Which type of asset has a physical form?

tangible asset

Which type of asset has a non-physical form?

Intangible asset

Which of the following best describes the operative chart of accounts?

Contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions

Which of the following is not a mode of acquiring an asset for a company?

Selling equipment

All of the following are transaction types that occur during the life of an asset except ___________ .

Allocation

Financial statements can be generated from which of the following?

Both operative and country-specific COAs

Which of the following statements regarding reconciliation accounts are not true?

Data are posted directly into them

Balance sheet accounts are grouped into which of the following categories?

• assets

• liabilities

• equity

An organization can possess which of the following types of assets?

• tangible

• intangible

• financial

Tangible assets can include which of the following?

• computers

• production machinery

• real estate

What are the most common transaction types that occur during the life of an asset?

• acquisition

• depreciation

• retirement

What are the primary ways in which an asset can be acquired?

• internally by production

• externally by vendor

• externally without vendor

Which of the following are common depreciation areas used in the US?

• book depreciation

• cost accounting depreciation

• legal depreciation

• special depreciation

From which of the following can financial statements be generated?

• operative chart of accounts

• country specific chart of accounts

• 
  

Which of the following are types of chart of accounts?

• operative COA

• Country specific COA

• group COA

What does COA data include?

• Client segment

• Company code segment

The COA segment of the COA data includes which of the following?

• account number

• account group

Which of the following does the balance sheet include?

• assets

• liabilities

Which of the following statements concerning reconciliation accounts are true?

• Reconciliation account for customers is accounts receivable

• Reconciliation account for vendors is accounts payable

When does a debit take place?

• When assets and expenses increase

• When revenue and liabilities decrease

Balance sheet accounts are grouped into:

assets, liabilities, equity

When does a credit take place?

• When assets and expenses decrease

• When revenue and liabilities increase

In process industries like chemicals and beverages, the bill of materials is also known as a(n)

• formula

Which one of the following best describes a work center?

• A location where value-added work needed to produce a material is carried out

All of the following can serve as a work center except

• a shipping dock

Which one of the following best defines material staging?

• Component materials are moved from storage and prepared for use

What term identifies the list of materials needed to produce one or more units of a finished good?

• Bill of materials

At what level are material requirements planning (MRP) and work scheduling data defined?

• plant level

Which of the following is not a step in the production process?

• billing

If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?

• need to increase inventory

What step in the production process is used to enter data in to the SAP ERP system when the operations needed to produce a materials are completed?

• confirmation

What operation in the routing is sometimes necessary to prepare materials for use in production?

• Material staging

Which of the following is not an outcome of a goods issue to a production order?

• a goods receipt is automatically recorded

Which one of the following are key organizational data relevant to the production process?

• company code

• client

• storage location

• plant

The master data relevant to the production process are

• work center

• material master

• bills of material

Which of the following can be included in processing time?

• machine time

• labor time

Which of the following are the general classifications of time elements in production?

• fixed

• variable

The material master is grouped into different views or segments based on which factors?

• processes that use the materials

• material type

• organization level

Examples of production resource tools are

• Fixtures

• Engineering drawings

• Calibration instruments

A planned order is a formal request that indicates

-How many units of a product needed -What materials are needed -When materials are needed

What are the organizational data that are included in a planned order?

• client

• company code

• plant

• storage location

Which are the following are options when a production manager receives a planned order?

• reject the planned order

• combine the planned order with other orders

• authorize the production

Which of the following are included in the header information of a production order?

• status

• plant

• validity

Which user inputs are included in a goods receipt?

• Quantities

• Dates

• Production order number

Which of the following statements about the goods receipt step are NOT true?

• It results in a decrease in inventory.

The key organizational level associated with inventory management is

• Storage location.

When do unplanned receipts occur?

• When a reference document does not exist

In the production process, a goods issue reflects

• Issuing raw materials or semifinished goods to a production order.

Which of the following scenarios requires material-to-material posting?

• Changing the material number of a material

What is a stock transfer used for?

• To physically move materials within the enterprise from one organizational level or location to another

Which of the following options is appropriate when two locations are physically close to each other and there is no significant time lag between issue and receipt?

• One-step procedure

A storage location-to-storage location transfer involves which of the following?

• A stock transfer between two storage locations within the same plant

Which of the following represents the hierarchy of a warehouse?

• Warehouse, storage type, storage section, storage bin

Shelf storage, pallet storage, and rack storage are examples of

• Storage types.

A storage type is a division of a warehouse based on the characteristics of the

• Space, materials, and activity.

A picking area groups which of the following elements?

• Storage bins, based on similar picking strategies

Shelves, stacks, and aisles are examples of

• Coordinate systems for addresses.

Which of the following represents the document used to plan the movement of materials into and out of bins in a warehouse?

• Transfer requirement

Which of the following is a request to change the status of the material?

• Posting change notice

When creating a transfer order, you find that a particular material has to be moved from multiple source bins. Which of the following statements follows from this scenario?

• The transfer order will have multiple line items for the material.

The ERP system can create transfer orders automatically, but only when

• A reference document exists.

Warehouse management is typically used

• By organizations that have either large quantities of materials or an expensive inventory.

Which of the following are examples of unplanned goods issue?

• issuing materials to scrap

• using materials for internal consumption

• issuing materials to sampling

Which of the following represent common stock statuses?

• in transit

• blocked

Which of the following occur when a goods receipt is posted for raw materials on a consignment basis?

• the status of the materials is set to consignment stock

• the quantity of materials in inventory is increased

A stock transfer can involve movements

• Between storage locations in different plants.

• Between plants in different company codes.

• Between plants in one company code.

• Between storage locations within one plant.

Which of the following are valid techniques for moving materials?

• stock transport order

• three step procedure

For which of the following scenarios can storage location-to-storage location transfer be applied?

• Materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant

• Materials received from a vendor are initially placed in a storage location for quality inspection to be performed before being placed in permanent location

Which of the following are examples of limitations of using a stock transfer to move materials from one plant to another?

• The company cannot track the progress of the transfer.

• The costs of transporting the materials are not taken into account.

• Valuation can be based only on the book value of the materials at the sending plant, not on the negotiated value.

A stock transport order can involve steps from which of the following processes?

• fulfillment

• procurement

• inventory management

Which of the following statements apply to stock transport orders?

• goods can be received into quality inspection or blocked stock statuses

• goods received can be posted to consumption accounts rather than material accounts

• An availability check can be executed to assess material availability in the supplying plant.

Which of the following organizational levels are relevant to the warehouse management view of master data?

• company code

• plant

• warehouse

Which of the following organizational data are included in a transfer requirement.

• storage location

• warehouse number

Examples of reference documents for a transfer order are

• transfer requirement

• material document

• delivery document

Which of the following are warehouse management steps related to the production process?

• create transfer order

• create transfer equipment

In a stock transfer from one bin to another within the same warehouse, which of the following statements apply?

• warehouse movements are involved

• a transfer requirement must be created manually

Which of the following are scenarios under which stock transfers involving warehouse movements can occur?

• Stock transfer from a plant where the storage location is not warehouse managed to a plant where it is

• Stock transfer from a plant where the storage location is warehouse managed to a plant where it is not

• Stock transfer between two warehouse-managed storage locations

The key links between inventory management and warehouse management are

• transfer requirements

• association of storage location to a warehouse

The money tied up in inventory best represents

an opportunity cost

A purchase requisition is

A request to purchase materials.

Requirements in the material planning process specify

How many of the materials are needed and when they are needed.

The organizational data elements in material planning are:

• Client, company code, plant, storage location.

A company has two options for procuring materials: make or buy. Which MRP data view of the material master will the ERP system consider for this decision?

• MRP 2

Which of the following statements best represents what procurement type indicates?

• whether a material is produced in house, obtained externally, both, or none

MRP type specifies

The production control technique used in planning.

Replenishment lead time is

The time between placing an order and receiving the materials.

Which of the following statements about consumption-based planning is TRUE?

Planning is based on historical data.

Which of the following options represents categories of consumption-based planning?

• Forecast-based planning, time-phased planning, reorder-point planning

A company would be most likely to apply consumption-based planning for which of the following products?

• pen

The MRP technique calculates the requirements for a material based on

The material's dependence on other materials.

Exploding the BOM refers to

Calculating and planning requirements for materials at all levels of the BOM.