Introduction to Business Process: chapter 1

1) Which term refers to business processes that are not executed by a single group or function?

A) Silo Effect B) Cross-Functional

C) Functional Structure D) Enterprise Systems

2) Which term refers to a system in which workers complete their tasks in separate departments without regard to the consequences for the other components of the process?

A) ERP Effect B) Silo Effect

C) Cross-Functional D) Functional Structure

3) Which system supports business process end to end?

A) Enterprise System B) Management System

C) Functional Structure D) Document System

4) Which of the following statements about business process is true?

A) They are executed across multiple functions

B) They are initiated by some type of trigger

C) They involve multiple steps

D) All of the above

5) Which term represents a set of tasks or activities that produce desired outcomes?

A) Business Process    B) Trigger

C) Outcome                D) None of the above

6) Which term refers to all of the activities involved in buying or acquiring the materials used by the organization, such as raw materials needed to make products?

A) Material Planning               B) Procurement Process

C) Production Process            D) Fulfillment Process

7) Which process involves the actual creation of the products?

A) Production Process            B) Material Planning

C) Procurement Process          D) Fulfillment Process

8) Which process uses historical data and sales forecasts to plan which materials will be procured and produced?

A) Material Planning               B) Procurement Process

C) Production Process            D) Fulfillment Process

9) Which process supports the design and development of products from the initial product idea stage through the discontinuation of the product?

A) Material Planning               B) Lifecycle Data Management

C) Production Process            D) Fulfillment Process

10) Which process tracks the financial impact of process steps with the goal of meeting legal reporting requirements?

A) Financial Accounting         B) Human Capital Management

C) Project Management          D) Management Accounting or Controlling

11)  Which process is used to plan and execute large projects such as the construction of a new factory or the production of complex products such as airplanes?

A) Human Capital Management         B) Project Management

C) Financial Accounting                     D) Management Accounting or Controlling

12) Which process focuses on people within an organization and includes functions such as recruiting, hiring, training, and benefits management?

A) Human Capital Management         B) Project Management

C) Financial Accounting                     D) Management Accounting or Controlling

13) What steps are involved in the accounting portion of the procurement process?

A) Receiving the materials and the invoice

B) Creating and sending the purchase order

C) Creating the purchase requisition and receiving the materials

D) Receiving the invoice and sending payment

14) What is the first step of the production process?

A) Authorize Production        B) Request Production

C) Create Product                   D) Issue Raw Materials

15) What is the final step of the procurement process?

A) Invoice                   B) Purchase Requisition

C) Purchase Order      D) Payment

16) What function does the warehouse perform in the fulfillment process?

A) Prepares and sends the shipment to the customer

B) Communicates data related to the order to other parts of the organization

C) Tracks the order

D) Notifies the customer

17)___ is concerned with matching the demand for materials in the organization with the supply.

A) Business Planning              B) The Silo Effect

C) Project Management          D) Material Planning

18) Which of the following is concerned with the storage and movement of materials

A) Business Planning              B) Silo Effect

C) Material Planning               D) Inventory and warehouse management

19)___ enables an organization to optimize its product development process, from design to

A) Business Planning              B) Lifecycle Data Management

C) Project Management          D) Material Planning

20) Which of the following are steps within a generic business process of an organization

A) Payment                 B) Trigger

C) Shipment                D) Outcome

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

21) The most common organizational structure within modern organizations is the functional structure. TRUE/FALSE

22) Losing sight of the big picture is commonly referred to as the silo effect. TRUE/FALSE

23) Systems that support end-to-end processes are called business processes. TRUE/FALSE.

24) An enterprise system is a set of tasks or activities that produce desired outcomes. TRUE/FALSE.

25) Without the various steps of the business process, a company can’t successfully bill customers and ship products. TRUE/FALSE

26) The lifecycle data management (design) process supports the design and development of products from the initial product idea stage through the discontinuation of the product. TRUE/FALSE

27) The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs. TRUE/FALSE.

28) The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization’s customers. TRUE/FALSE

29) The financial accounting process focuses on internal reporting to manage costs and revenues. TRUE/FALSE.

30) The procurement process includes all of the tasks involved in acquiring needed materials. TRUE/FALSE

31) Within the production process, the issuing of raw materials takes place in the warehouse. TRUE/FALSE

32) The purpose of material planning is to match supply with demand. TRUE/FALSE

33) Insufficient supply results in a situation called “stock out". 33)______

34) Common reports of financial accounting include income statement, profit and loss, and balance sheet. TRUE/FALSE

35) Management accounting helps an organization track costs and revenues to assess its profitability. TRUE/FALSE

1.	Which term relates to the technical capabilities that allow systems to connect with one another through standardized interfaces called Web services? a.       Enterprise Resource Planning b.      Supply Chain Management c.       Architecture d.      Service-Oriented Architecture e.       None of the above
2.	Which term refers to the technical structure of the software, how users interact with the software, and how the software is physically managed on computer hardware? a.       Architecture b.      Supply Chain Management c.       Enterprise Resource Planning d.      Service Oriented Architecture e.       None of the above
3.	Which system connects a company’s ERP system to those of its customers? a.       Application Platform b.      Customer Relationship Management (CRM) c.       Enterprise Solution d.      Product Lifecycle Management (PLM) e.       None of the above
4.	Which of the following systems helps companies administer the processes of research, design, and product management? a.       Application Platform b.      Customer Relationship Management (CRM) c.       Enterprise Solution d.      Product Lifecycle Management (PLM) e.       None of the above
5.	Which program is the “operating system” for an entire company’s business processes? a.       Microsoft Vista b.      Linux c.       SAP NetWeaver d.      SAP Prolific e.       None of the above
6.	The highest organizational level in SAP ERP is the a.       Vendor b.      Client c.       Material Master d.      Plant e.       None of the above
7.	Which of the following is (are) used to represent the structure of an enterprise? a.       Organizational Data b.      Project Management c.       Client d.      Plant e.       Lifecycle Data Management
8.	Which of the following terms refers to an organizational element that performs multiple functions and is relevant to several processes? a.       Warehouse b.      Procurement c.       Plant d.      Fulfillment e.       Lifecycle Data Management
9.	How many company codes can a plant belong to? a.       One b.      Two c.       Three d.      Any Number
10.	Which of the following master data is used in numerous processes? a.       Material Master b.      Plant c.       Company Code d.      Customer Master e.       Vendor Master
11.	Materials that are created by the production process from other materials are referred to as a.       Finished Goods (FERT) b.      Semi-finished Goods (HALB) c.       Trading Goods (HAWA) d.      Raw Materials e.       None of the above
12.	What type of materials is purchased from a vendor? a.       Trading Goods b.      Finished Goods (FERT) c.       Semi-finished Goods (HALB) d.      Material Types e.       None of the above
13.	Materials that are purchased from an external source (a vendor) and used in the production process are known as  ______________ a.       Finished Goods (FERT) b.      Semi-finished Goods (HALB) c.       Trading Goods (HAWA) d.      Raw Materials e.       None of the above
14.	____________reflect(s) the consequences of executing process steps.   a.       Material Groups b.      Organizational Data c.       Transaction Data d.      Project Management e.       None of the above
15.	Which term is generally used to describe the ways that users can view and analyze data to help them make decisions and complete their tasks? a.       Reporting b.      Evaluating c.       Characteristics d.      Period Definition e.       Online Analytic Processing (OLAP)
16.	Which of the following is (are) used to capture specified transaction data in an aggregated and summarized form that enables users to analyze the data as needed. a.       Reporting b.      Evaluating c.       Information Structures d.      Period Definition e.       Online Analytic Processing (OLAP)
17.	Which of the following identify tasks that are scheduled to be completed in a process? a.       Online Lists b.      Parameters c.       Information Structures d.      Work Lists e.       Period definitions

Multiple Answer Questions

18.	A three-tier architecture includes which of the following components? a)      Operating system layer b)      Data layer c)      Presentation layer d)      Application layer e)      Network layer
19.	Which of the following SAP systems are used to support inter-company processes? (2 correct answers) a.       SAP ERP b.      SAP SCM c.       SAP CRM d.      SAP BI e.       SAP Net Weaver
20.	Which of the following are examples of master data in SAP? a.       Client b.      Customer c.       Purchasing Organization d.      Vendor e.       Plant
21.	A plant can be used to represent which of the following? a.       A factory b.      A storage facility (warehouse, DC) c.       An office d.      A legal entity e.       A company vehicle
22.	Material master data are grouped based on: a.       Process b.      Material type c.       Company Code d.      Organizational Element e.       Key segments
23.	Which of the following are examples of work lists? a.       Picking list b.      Billing due list c.       List of customers d.      Delivery due list e.       List of documents

True-False Questions

24.	The architecture of an enterprise system refers to the technical structure of the software, how users interact with the software, and how the software is physically managed on computer hardware.
25.	The three layers of the “three-tier client-server architecture” are the presentation layer, windows layer, and data layer. F
26.	When you access the Internet, your browser is the presentation layer. T
27.	Scalability is the ability of the hardware and software to support a greater number of users easily over time. T
28.	Service-oriented architecture (SOA) is the fundamental concept behind systems connecting through standardized interfaces called Web services. T
29.	Enterprise resource planning (ERP) focuses on the internal operations of an organization. T
30.	Inter-company processes take place within a single company. F
31.	Customer relationship management (CRM) systems connect a company’s ERP system to its accounting software system.
32.	Supply chain management (SCM) systems help companies execute the processes of research, design, and product management.
33.	Current versions of the SAP business suite can’t run on SAP Net Weaver. F
34.	SAP Net Weaver is the “operating system” for an entire company’s business processes. T
35.	Organizational data are used to represent the structure of an enterprise. T
36.	A company code is the highest organizational level in SAP ERP. F
37.	A client represents each company within an enterprise. F
38.	Material master are organizational elements that performs multiple functions and is relevant to several processes.  F
39.	A plant can be a factory, a warehouse, a regional distribution center, or a service center. T
40.	The material master includes a large amount of data because it is used in numerous processes. T
41.	The four most common material types are raw materials, semi‐finished goods, finished goods, and exported goods. F
42.	Raw materials (ROH) are purchased from an external source ‐ a vendor‐ and used in the production process.  T
43.	Trading goods (HAWA) are resold to customers after they have been modified by the company. F
44.	The online transaction processing (OLTP) system is designed to capture and store detailed organizational data. F
45.	Work lists identify tasks that are scheduled to be completed in a process. T

1) _ _____ is concerned with recording the financial impacts of business processes as they are executed.

A) Financial accounting (Fl)  B) Controlling (CO)

 C) Bank ledger accounting D) N one of the above

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

A) Sales order processing         B) Accounts receivable accounting

 C) Credit management                     D) Income verification

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

A) Accounts receivable accounting     B) Fixed asset accounting

 C) Bank ledger accounting                D) All of the above

4) _ _______ are internal divisions of an enterprise that are used to define areas of responsibility or to meet the external reporting requirements of an enterprise segment.

A) Cost centers              B) Business area

C) Depreciation areas      D) Sub- ledgers

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

A) General ledger                    B) Balance sheet

C) Chart of accounts (COA)     D) Bank ledger

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

A) Liabilities          B) Equity     C) Assets    D) Revenues

7) Which term represents what a company owes to others, including money owed to vendors and loans from financial institutions?

A) Liabilities          B) Equity     C) Assets    D) Revenues

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

A) Liabilities          B) Equity     C) Assets   D) Revenues

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

A) Assets    B) Expenses         C) Liabilities          D) Equity

10) Which element is a part of the typical company code data in general ledger account?

A) Tax- related data        B) Field status groups

C) Line item display        D) All of the above

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

A) Sub- ledger               B) Reconciliation account

C) Line item display        D) None of the above

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

A) Financial accounting document      B) Subsidiary ledger

C) Sub- ledger                                 D) Parallel accounting

13) Which type of asset has a physical form?

A) Master asset     B) Tangible asset   C) Informal asset D) Intangible asset

14) Which type of asset has a non- physical form?

A) Intangible asset B) Master asset    C) Tangible asset   D) Informal asset

15) Which of the following is used to report data needed to meet legal and regulatory requirements?

A) Assets B) Equity C) Tangible document            D) Financial statement

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

A) Acquiring internally via the production process

B) Acquire from a vendor using the purchasing process

C) Acquire from a vendor without using the purchasing process

D) Selling equipment

17) All of the following are transaction types that occur during the life of an asset except

A) Acquisition       B) Depreciation     C) Allocation         D) Retirement

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

A) Revenue           B) Assets     C) Liabilities          D) Equity

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

A) Tangible           B) Intangible         C) Financial          D) Economic

20) Tangible assets can include which of the following?

A) Computers B) Bonds C) Production Machinery         D) Real Estate

21) W hat is true about a business area?

A) It is a internal division of an enterprise    

B) It helps management monitor performance

C) It is used for external reporting

D) It is associated with one company code

22) Which of the following are types of chart of accounts?

A) Operative COA          B) Country specific COA

C) Active COA               D) Group COA

23) What does the COA data include?

A) Client segment           B) Storage location segment

C) Plant segment            D) Company code segment

24) Which attributes are present in the FI document items?

A) Amount           B) Posting key      C) Document type          D) Currency

25) Which attributes are present in the FI document header?

A) Document type                   B) Posting date      C) Currency         D) Amount

26) When does a credit take place?

A) When assets and expenses decrease

B) When assets and expenses increase

C) When revenue and liabilities decrease

D) When revenue and liabilities increase

TRUE/FALSE. Write ʹTʹ if the statement is true and ʹFʹ if the statement is false.

 27) Accounting processes are broadly divided into two main categories: Financial accounting and management accounting

Answer: True False

28) Financial accounting (FI) is concerned with recording the financial impacts of business processes as they executed.

Answer: True False

29) Management Accounting (CO) is intended primarily for audiences outside the organization.

Answer: True False

30) The general ledger is used to record the financial impacts of business process steps.

Answer: True False

31) A chart of accounts (COA) is an ordered listing of accounts that comprise a companyʹ s general ledger.

Answer: True False

32) Liabilities are what the company owns, such as cash, land, and buildings.

Answer: True False

33) Account currency determines the currency in which all the transactions are recorded.

Answer: True False

34) An increase in an asset account or an expense account results in a credit posting.

Answer: True False

35) An increase in revenue or liability results in a debit posting.

Answer: True False

36) Accounts payable accounting is concerned with vendors. 36) ______

Answer: True False

37) Accounts receivable accounting is concerned with customers.

Answer: True False

38) Intangible assets are physical items such as buildings, machinery, and computers.

Answer: True False

39) Tangible assets are non- physical items such as trademarks and patents.

Answer: True False

40) Reporting within financial accounting is divided into two categories: generating financial statements and displaying account information.

Answer: True False