Essentials of Business Processes and Information Systems Wiley Plus – Flashcards

In business-to-business commerce which of the following occurs? Companies purchase their materials directly from customers according to business requirements. Companies purchase their materials directly from other companies according to business requirements. Customers purchase their materials directly from other customers. Customers purchase their materials directly from companies.

Your company must purchase its raw materials from another company. Which of the following is NOT an important reason to establish a legally binding and financially secure relationship? If the company you are procuring raw materials from is out of stock, you can simply purchase from another company. If the company you are procuring raw materials from is out of stock, it will be difficult to purchase materials from another company. To minimize your exposure to risk To minimize the difficulties in working with different currencies, tariffs, duties, and tax systems in a global environment

The procurement process begins when: A company ships an order to a customer A company receives a packing list A company discovers that it needs to acquire materials A company receives an invoice

Which of the following are documents commonly associated with the procurement process? Goods receipt document, vendor invoice, quotation Customer inquiry, quotation, packing list Purchase order, vendor payment, sales order Purchase requisition, packing list, vendor invoice

A purchase requisition is created when the warehouse selects a suitable supplier. True False

A purchase requisition is completed entirely within the warehouse. True False

Why must the free-on-board (FOB) point be specified? It determines the quantities of materials shipped. It determines the ownership of materials in case of loss or damage during shipment. It determines the date the material must be received by. The FOB is not really that important.

In a paper process, copies of a completed purchase order go to: Warehouse, accounting, the vendor The vendor, operations, warehouse Accounting, the vendor, human resources Accounting, the vendor, information technology

As discussed as part of the procurement process, companies implement quality control processes for which reasons? To ensure the correct quantities were shipped and to ensure the shipped items were in good condition. To avoid a return process and to ensure what was ordered is what was shipped. Both A and B None of these are reasons a company implements a quality control process.

Instance-level information is related to the overall level across multiple instances of a process. True False

Process-level information is related to the overall level across multiple instances of a process. True False

Which of the following are examples of instance-level information in the procurement process? Total amount of a material ordered during June and delivery location FOB point and average time of delivery from a vendor Which suppliers are most frequently used and which materials are most frequently ordered A purchase requisition number, date requested, FOB point

Which of the following are examples of process-level information in the procurement process? The average time to receive materials from a specific vendor and the most frequently ordered material The most frequently ordered material and the date a purchase requisition was created The delivery location and the vendor on a specific purchase requisition The most frequently used supplier and the quantity of materials on a specific purchase requisition

In the procurement process, a financial impact occurs when ownership of goods is transferred per the FOB terms. True False

In the procurement process, a financial impact occurs when a purchase requisition is created. True False

An enterprise system can be configured to automatically create a purchase requisition when the inventory of materials falls below a determined point. True False

A separate enterprise system must be configured for each step of the procurement process. True False

Which of the following are ways an enterprise system can support the execution of the procurement process? Documents can be quickly and easily created and stored in an enterprise system. Automation of communication Certain data fields can be pre-populated across steps in the process. All of the above

An enterprise system can perform which of the following automatically? Transfer the necessary data from a purchase requisition to a purchase order A three-way match once invoice data has been provided Record the receipt of materials to the warehouse Both A and B

A benefit of enterprise systems is that all process data, such as vendor names, quantities, and document ID numbers, are stored in a common database that other people involved in a process can access. True False

Monitoring processes in an enterprise system is complicated because the needed reports often come from multiple documents and functional departments that must be manually located and reviewed. True False

The ability to drill down into the details of a historical report in an enterprise system is possible because all data are stored in a common database. True False

The use of an enterprise system in the procurement process will result in longer lead and cycle times along with increased visibility and reduced inventories. True False

A key performance indicator (KPI): Is the ability to drill down into the details of a process Is a standard definition of what is expected in a process Is an example of process-level information Can never be automated in terms of how exceptions are handled in an enterprise system