1.

A sequence of tasks or activities that takes a set of inputs and converts them into
desired outputs is called:
a. globalization
b. Income statement
*c. a business process
d. an ERP system
2. ___________ indicates the financial condition of a company at a specific point in
time.
a. Income Statement
*b. Balance Sheet
c. Chart of Accounts
d. Statement of Income
3. ___________ indicate(s) the financial condition of a company over a specific period
of time.
*a. Income Statement
b. Balance Statement
c. Chart of Accounts
d. Statement of Income
4. __________ can also be referred to as a profit and loss (P&L) statement.
*a. Income Statement
b. Balance Statement
c. Chart of Accounts
d. Statement of Income
5. Which of the following processes is triggered when someone in the company
determines that a specific quantity of a certain material is needed?
*a. Procurement Process
b. CRM Process
c. Fulfillment Process
d. Hiring Process
6. Which of the following processes involves making products in-house?
a. Procurement Process
*b. Production Process
c. Fulfillment Process
d. Hiring Process
7. According to Essentials of Business by Magal, why did Apple Inc. decide to have its
products made by an outside contract manufacturer?
*a. So it could stick to its core competency of designing easy-to-use and engaging
hardware and software products.
b. Because the contract manufacturer used cheaper labor which allowed Apple to cut
costs and increase profits.

c. Because the theories of globalization suggested it was a good strategy.

d. To provide a higher quality product.
8. Why do we study the global competitive environment?
*a. Because doing business globally can provide access to cheaper resources which
reduce costs and increase the number of potential customers which increases sales.
b. Because outsourcing is making manufacturing in the U.S. a thing of the past.
c. Because, as a knowledge worker, I'll probably be required to work overseas someday.
d. Because MIS is difficult to understand without it.
9. Which activity would likely be performed by a knowledge worker?
a. Creating a Purchase Requisition when inventory falls below a reorder point.
b. Converting a Requisition into a PO and sending it to a vendor.
c. Receiving a shipment from a vendor.
*d. Deciding whether to outsource manufacturing.
10. Which is not a skill of a knowledge worker?
*a. Business competency
b. Strategic thinking
c. Information literacy
d. Communication and collaboration
11. If the silo effect is a consequence, why do companies organize by business
function?
*a. Because specialization allows companies to be more efficient.
b. Because one person completing all tasks of a process is more efficient.
c. Because functional organizations can more easily downsize, minimizing labor costs.
d. Because it's always been done that way.
12. Select the most accurate statement.
a. Lead time is the amount of time between placing a PO and receiving goods.
b. Cycle time is similar but measures the time to complete the fulfillment process.
*c. Both the above are true.
d. Neither of the above are true.
13. From the sidebar cases in Essentials of Business by Magal, which company
produces make-to-order goods, meaning they assemble products only after receiving a
customer order?
*a. Dell
b. Apple
c. Nike
d. Cisco
14. All of the following are disadvantages of a paper-based process except?
*a. the silo effect

b. delays
c. excess inventory
d. lack of visibility

CH1.2
1. Which of the following are considered knowledge workers?
*a. product manager
*b. sales executive
*c. production manager
d. accounting clerk
e. insurance claims processor
2. Which of the following are key skills necessary for a knowledge worker?
*a. strategic thinking
*b. communication and collaboration
*c. information literacy
d. computer programming
e. software development
3. Which of the following are typical functional areas in a business?
*a. Purchasing
*b. Marketing and Sales
*c. Finance and Accounting
d. Purchase Requisition
e. Purchase Order
4. Which of the following are negative consequences of paper-based processes?
*a. delays
*b. excess inventory
*c. lack of visibility
d. increased dependence on technology
e. globalization
5. Which of the following are true about the manner in which an enterprise system supports
a process?
*a. An ES helps execute process steps.
*b. An ES captures and stores process data
*c. An ES helps monitor process performance by providing information.
d. An ES creates the critical paperwork that is sent to the next step in the process.
e. An ES stores data in various departmental databases for easy access to needed data.
6. Which of the following are sources of delays in the execution of manual, paper-based
processes?
a. high visibility across the process resulting in immediate access needed to complete a
task
*b. creating and maintaining needed paperwork
*c. transmitting paperwork to other departments
d. a large common database that slows down information retrieval
e. information overload due to increased volume of email

7. Which of the following are characteristics of knowledge work?

*a. Knowledge work is typically unstructured.
b. Knowledge work is typically structured.
*c. Knowledge work relies on information.
d. Knowledge work is repetitive.
e. Knowledge work is well defined.
8. Which of the following are knowledge workers?
*a. product managers
*b. sales executive
*c. production manager
d. accounting clerk
e. insurance claims processor
9. Which of the following are typical business processes?
a. accounting
*b. procurement
*c. fulfillment
d. marketing
e. research and development
10. In a manual, paper-based process, delays are caused due to which of the following?
a. increased inventories
b. increased cycle times
*c. creating paperwork
d. reduced cycle times
*e. sending paperwork

CH.2
1. Which of the following are components of an ES?
*a. hardware
*b. software
*c. database
d. people
e. network
2. Which of the following are stages in the evolution of enterprise systems?
*a. stand-alone mainframe systems
b. packaged applications
*c. client-server architecture
*d. service oriented architecture
e. SAP
3. Which of the following are types of data in an ES?
*a. organizational data
*b. master data
*c. transaction data
d. income statement
e. balance sheet
4. Enterprise system application suites include which of the following systems?
*a. Enterprise Resource Planning (ERP) systems
*b. Supply Chain Management (SCM) systems
*c. Suppler Relationship Management (SRM) systems
*d. Customer Relationship Management (CRM) systems
*e. Product Lifecycle Management (PLM) systems
5. Which of the following is part of the 3-tier architecture?
*a. presentation layer
*b. application layer
*c. data layer
d. hardware layer

CH2.
1. Which of the following is NOT part of the 3-tier architecture?
a. presentation layer
b. application layer
c. data layer
*d. hardware layer
2. Which of the following is an example of organizational data? Data about:
a. Customers
b. Vendors
*c. Sales Organizations
d. Material
3. Which of the following is an example of master data? Data about:
*a. Customers
b. Purchase Orders
c. Sales Organizations
d. Company Codes
4. Which of the following is the latest stage in the evolution of enterprise systems?
*a. service oriented architecture (SOA)
b. client-server architecture
c. process oriented architecture
d. presentation layer
5. Which of the following was the earliest stage in the evolution of enterprise systems?
a. service oriented architecture (SOA)
b. client-server architecture
c. process oriented architecture
*d. stand-alone mainframe architecture
6. Which of the following materials does Super Skateboard Builders (SSB), Inc. NOT
make?
a. Entry-Level Skateboard
*b. Hooded Sweatshirt
c. T-Shirt
d. First Aid Kit

CH3.2
1. Which of the following are key data in a purchase requisition when the requisition is
first created?
*a. Quantity of material requested
*b. Requested Delivery Date
c. Prices of the material ordered
d. Date the order was shipped
e. Purchase order number
2. Which of the following are key data in a purchase order when the order is first
created?
*a. Quantity of material ordered
*b. Requested Delivery Date
*c. Prices of the material ordered
d. Date the order was shipped
*e. Purchase order number
3. Which of the following are key data in a packing list?
a. Requested Delivery Date
*b. Order and ship quantity
c. Prices of the material ordered
*d. Date the order was shipped
*e. Unit weight
4. Which of the following are key data in a goods receipt?
a. Requested Delivery Date
*b. Order and received quantity
c. Prices of the material ordered
*d. Receipt Date
e. Unit weight
5. Which of the following are key data in an invoice?
a. Requested Delivery Date
b. Order and received quantity
*c. Prices of the material ordered
*d. Invoice Date
*e. FOB
6. A three-way match involves which of the following documents?
*a. Purchase Order
*b. Goods Receipt Document
*c. Invoice
d. Purchase Requisition

e. Packing List
7. Which of the following are examples of process-level information relevant to the
procurement process?
*a. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
*b. Which materials are purchased most frequently?
c. Which materials are produced most often?
d. Which customer buys most frequently?
*e. What is the average time between sending a purchase order and receiving the
shipment?
8. Which of the following are examples of process-level information relevant to the
procurement process?
a. Which customers are prompt and which ones are habitually late in sending the
payment?
*b. Which materials are purchased most frequently?
c. Which materials are produced most often?
*d. Which vendor does SSB buy from the most frequently?
*e. What is the average time between sending a purchase order and receiving the
shipment?
9. Which of the following are examples of process-level information relevant to the
procurement process?
*a. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
b. Which materials are sold most frequently?
c. Which materials are produced most often?
*d. Which vendor does SSB buy from the most frequently?
e. What is the average time between creating a sales order and sending the shipment?
10. Which of the following are examples of instance-level information relevant to the
procurement process?
a. When did the customer receive the goods?
*b. Was the invoice paid? If so, when?
c. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
*d. What was the total of the invoice?
*e. How long did it take to receive the shipment after creating a purchase order?
11. Which of the following are examples of instance-level information relevant to the
procurement process?
*a. When did we receive the goods?
b. Was the invoice sent? If so, when?
c. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?

*d. What was the total of the invoice?

e. How long did it take to send the shipment after creating a sales order?
12. Which of the following are examples of instance-level information relevant to the
procurement process?
*a. When did we receive the goods?
*b. Was the invoice received? If so, when?
c. When did the warehouse ship the order out?
*d. What was the total of the payment?
e. How long did it take to send the shipment after creating a sales order?
13. Which of the following steps in the procurement process have a financial impact on
the company that is buying materials?
a. Create purchase requisition
*b. Receive shipment from vendor
c. Receive invoice form vendor
d. Create and send purchase order
*e. Send payment to vendor
14. Which of the following steps in the procurement process do not have a financial
impact on the company that is buying materials?
*a. Create purchase requisition
b. Receive shipment from vendor
*c. Receive invoice form vendor
*d. Create and send purchase order
e. Send payment to vendor
15. In which of the following documents is the price of the materials relevant?
*a. Invoice
b. Purchase Requisition
c. Good Receipt Document
d. Packing List
*e. Purchase Order
16. In which of the following documents is the price of the materials not relevant?
a. Invoice
*b. Purchase Requisition
*c. Good Receipt Document
*d. Packing List
e. Purchase Order

CH.3
1. In the procurement process, which department creates the Purchase Order?
a. Sales
*b. Purchasing
c. Warehouse
d. Accounting
2. In the procurement process, which department receives the Purchase Requisition?
a. Sales
*b. Purchasing
c. Warehouse
d. Accounting
3. In the procurement process, which department creates the Purchase Requisition?
a. Sales
b. Purchasing
*c. Warehouse
d. Accounting
4. In the procurement process, which department creates the Packing List and Goods
Receipt Document?
a. Sales
b. Purchasing
*c. Warehouse
d. Accounting
5. In the procurement process, which department receives the invoice and sends the
payment?
a. Sales
b. Purchasing
c. Warehouse
*d. Accounting
6. Which of the following is the correct sequence of steps in the Procurement Process?
*a. Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send
Payment
b. Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send
Payment
c. Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send
Payment
d. Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive
Shipment, Receive Invoice

7. Which of the following documents informs about the contents in a shipment?

a. Invoice
b. Purchase Order
c. Goods Receipt Document
*d. Packing List
8. Which of the following payment terms means that payment is due in 30 days, but the
payer will get a 3% discount if payment is made within 10 days?
a. 10%30/Net 10
*b. 3%10/Net 30
c. Net 10/30
d. 10%3/Net 30
9. A packing list does not include which of the following data?
*a. price/cost
b. weight
c. quantity
d. ship date
10. How does the recipient of a shipment know which order the shipment is for?
*a. by referencing the order number included in the accompanying packing list
b. by referencing the order number included in the accompanying purchase order
c. by matching the material in the shipment with one of the unfilled purchase orders
d. by performing a three-way match of key documents
11. Under which of the following payment terms is payment due in 30 days, but the
payer will get a 1% discount if payment is made within 7 days?
a. 7%30/Net 10
*b. 1%7/Net 30
c. Net 7/30
d. 7%1/Net 30
12. A purchase requisition does not include which of the following data?
*a. price/cost
b. F.O.B. Point
c. quantity
d. requested delivery date
13. A purchase order does not include which of the following data?
a. price/cost
b. F.O.B. Point
c. quantity
*d. requisition number

14. A goods receipt does not include which of the following data?
*a. price/cost
b. quantity received
c. quantity ordered
d. backorder quantity
15. An invoice does not include which of the following data?
a. price/cost
b. F.O.B. Point
c. quantity
*d. requested delivery date
16. Which of the following documents identifies the material needed, the quantity
needed, and the date it is needed?
a. Invoice
b. Goods Receipt Document
c. Packing List
*d. Purchase Requisition
17. Which of the following documents is an agreement to purchase?
a. Invoice
*b. Purchase Order
c. Goods Receipt Document
d. Purchase Requisition
18. Which of the following documents verifies that the specified goods have been
received?
a. Invoice
b. Purchase Order
*c. Goods Receipt Document
d. Packing List
19. Which of the following documents is sent to accounting for payment?
*a. Invoice
b. Purchase Order
c. Packing List
d. Purchase Requisition
20. What is the only document where the quantity of the materials is not relevant?
a. Purchase Order
b. Goods Receipt Document
*c. Payment

d. Purchase Requisition
21. What document is the only document created by the purchasing department?
a. Invoice
*b. Purchase Order
c. Goods Receipt Document
d. Purchase Requisition
22. Payment terms are declared on what document?
a. Invoice
*b. Purchase Order
c. Goods Receipt Document
d. Purchase Requisition

CH4.2
1. Which of the following are variations of the basic fulfillment process?
*a. quote to cash
b. procure to pay
c. requisition to pay
*d. inquiry to cash
e. plan to produce
2. Which of the following are documents associated with the fulfillment process?
*a. picking list
*b. packing list
c. bill of materials
d. customer master
*e. customer invoice
3. Which of the following steps in the fulfillment process have an impact on the
financials of the company receiving the order from the customer?
a. receive customer inquiry
b. send quotation
c. receive customer purchase order
*d. send shipment
*e. receive customer payment
4. Which of the following steps in the fulfillment process do not have an impact on the
financials of the company receiving the order from the customer?
*a. receive customer inquiry
*b. send quotation
*c. receive customer purchase order
d. send shipment
e. receive customer payment
5. Which of the following accounts are affected by a shipment of goods to a customer?
a. accounts payable
*b. accounts receivable
*c. cost of goods sold
*d. finished goods inventory
e. bank account
6. Which of the following are examples of process-level information relevant to the
fulfillment process?
*a. Which customers are prompt and which ones are habitually late in sending the
payment?
*b. Which materials are sold most frequently?
c. Which materials are produced most often?
d. Which vendor do we buy from most frequently?
*e. What is the average time between creating a sales order and sending the shipment?

7. Which of the following are examples of process-level information relevant to the

fulfillment process?
a. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
*b. Which materials are sold most frequently?
c. Which materials are produced most often?
*d. Which customer does SSB sell to most frequently?
*e. What is the average time between creating a sales order and sending the shipment?
8. Which of the following are examples of process-level information relevant to the
fulfillment process?
*a. Which customers are prompt and which ones are habitually late in sending the
payment?
b. Which materials are procured most frequently?
c. Which materials are produced most often?
*d. Which customer does SSB sell to the most frequently?
e. What is the average time between creating a purchase order and receiving the
shipment?
9. Which of the following are examples of instance-level information relevant to the
fulfillment process?
a. When did the vendor send the goods?
*b. Was the invoice paid? If so, when?
c. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
*d. What was the total of the sales order?
*e. How long did it take to send the shipment after creating a sales order?
10. Which of the following are examples of instance-level information relevant to the
fulfillment process?
*a. When did we send the goods?
b. Was the invoice received? If so, when?
c. Which suppliers are prompt and which ones are habitually late in delivering the
materials ordered?
*d. What was the total of the invoice?
e. What is the average time between creating a purchase order and receiving the
shipment?
11. Which of the following are examples of instance-level information relevant to the
fulfillment process?
*a. When did we send the goods?
*b. Was the invoice sent? If so, when?
c. When did the warehouse receive the order?
*d. What was the total of the payment?
e. How long did it take to receive the shipment after creating a purchase order?

12. Typically, which of the following information would you find in a sales order?
*a. Bill to address
*b. Ship to address
c. Quantity shipped
*d. Requested delivery date
e. Storage Location
13. Typically, which of the following information would you find in a purchase order?
*a. Bill to address
*b. Ship to address
c. Quantity shipped
*d. Requested delivery date
e. Storage Location
14. Typically, which of the following information would you find in a quotation?
a. Bill to address
b. Ship to address
*c. Quantity
d. Requested delivery date
*e. Price
15. Typically, which of the following information would you find in a picking document?
*a. Bill to address
*b. Ship to address
*c. Quantity
*d. Requested delivery date
e. Price
16. Typically, which of the following information would you find in a packing list?
*a. Bill to address
*b. Ship to address
*c. Quantity
d. Requested delivery date
e. Price
17. Typically, which of the following information would you find in an invoice?
*a. Bill to address
*b. Ship to address
*c. Quantity
d. Requested delivery date
*e. Price

CH.4.1
1. Which of the following is the correct order of the Fulfillment Process?
*a. Receive Customer Inquiry, Receive Customer Purchase Order, Create Sales Order,
Prepare and Send Shipment, Create and Send Invoice, Receive Payment
b. Receive Customer Purchase Order, Receive Customer Inquiry, Create Sales Order,
Prepare and Send Shipment, Create and Send Invoice, Receive Payment.
c. Receive Customer Inquiry, Receive Customer Purchase Order, Create Sales Order,
Create and Send Invoice, Prepare and Send Shipment, Receive Payment.
d. Create Sales Order, Receive Customer Inquiry, Receive Customer Purchase Order,
Prepare and Send Shipment, Create and Send Invoice, Receive Payment.
2. In the fulfillment process, which department prepares and sends the shipment?
a. Sales
b. Purchasing
c. Accounting
*d. Warehouse
3. In the fulfillment process, which department prepares and sends the quotation?
*a. Sales
b. Purchasing
c. Accounting
d. Production
4. In the fulfillment process, which department prepares and sends the invoice?
a. Sales
*b. Accounting
c. Warehouse
d. Production
5. In the fulfillment process, which department receives payment?
a. Sales
b. Purchasing
*c. Accounting
d. Warehouse
6. Which of the following data is NOT typically found in a customer purchase order?
a. material number
b. quantity
*c. storage location
d. price
7. Which of the following data is NOT typically found in a sales order?
a. requested delivery date
*b. actual delivery date
c. material number
d. shipment terms

8. Which of the following data is NOT typically found in a quotation?

*a. requested delivery date
b. quantity
c. price
d. terms of delivery
9. Which of the following data is NOT typically found in a picking document?
a. quantity
b. material number
*c. price
d. F.O.B. Point
10. Which of the following data is NOT typically found in a packing list?
a. Ship to:
b. quantity
c. Bill to:
*d. invoice date
11. Which of the following data is NOT typically found in an invoice?
a. Ship to:
b. quantity
c. price
*d. picked quantity
12. In a manual process, which of the following documents is used to track the progress
of the fulfillment process?
a. purchase order
*b. sales order
c. picking list
d. invoice
13. In a manual process, which of the following documents is a commitment by the
customer to purchase the materials?
*a. purchase order
b. sales order
c. picking list
d. packing list
14. In a manual process, which of the following documents is an itemized list of the
materials sent or the services provided to the customer, with the cost of the items plus
discounts, taxes, shipping, and other charges?
a. purchase order
b. sales order
*c. invoice
d. packing list

15. In a manual process, which of the following documents is created by the warehouse
when they receive a sales order?
a. purchase order
b. sales order
*c. picking list
d. invoice
16. In a manual process, which of the following documents accompanies the shipment
and specifies the items and quantities shipped?
a. purchase order
b. picking list
c. invoice
*d. packing list
17. A company does not have sufficient inventory of materials ordered by a customer.
So, it ships what it has now and will ship the remaining at a later date when more
materials are available. Which of the following best describes the above scenario?
a. balked shipment
b. rejected shipment
c. picking
*d. backorder
18. When using an ES, the person responsible for preparing shipments can retrieve a
list of orders that need to be shipped. Such a list is called:
a. billing due list
*b. delivery due list
c. order due list
d. customer order list
19. When using an ES, the person responsible for preparing invoices can retrieve a list
of orders that need to be billed. Such a list is called:
*a. billing due list
b. delivery due list
c. order due list
d. customer order list
20. Payment terms are declared by the seller at what step?
a. Customer Inquiry
*b. Quotation
c. Purchase Order
d. Sales Order
21. Payment terms are declared by the buyer at what step?
a. Customer Inquiry
b. Quotation
*c. Purchase Order
d. Sales Order

CH5.2
1. Which of the following are characteristics of discrete manufacturing?
*a. items produced are distinct and countable
b. the product cannot be easily disassembled
c. a formulation process or a recipe is needed to produce the product
*d. a bill of material is needed to produce the product
*e. parts used are generally identifiable
2. Which of the following information is included in the definition of each operation in a
product routing?
*a. the work center where the operation is performed
b. the person performing the operation
*c. time needed to complete the operation
*d. materials used in the operation
3. Which of the following documents are involved in the production process when using
a make-to-stock strategy?
a. customer purchase order
*b. planned order
*c. material withdrawal slip
*d. production order
e. delivery due list
4. Which of the following are examples of process level information from the production
process?
*a. What is the average time needed to produce a product?
*b. What is the average time taken to complete each step in the routing?
c. What are our companys bestselling products?
d. How much time did it take to complete production order #1?
e. What is the status of production order #1?
5. Which of the following are examples of process level information from the production
process?
*a. What is the average wait until a product is put into production?
*b. On average, what product produces the most scrap?
c. What are our companys bestselling products?
d. What is the average time from sales order creation to shipment?
e. What is the status of production order #1?
6. Which of the following are examples of instance level information from the production
process?
a. What is the average time needed to make a product?
b. What is the average time taken to complete each step in the routing?

c. What was the total cost of purchase order #1?

*d. How much time did it take to complete production order #1?
*e. What is the status of production order #1?
7. Which of the following are examples of instance level information from the production
process?
a. What is the average time needed to order a product?
b. What is the average time taken to complete each step in the routing?
*c. What was the total cost of production order #1?
d. How much time did it take to complete purchase order #1?
*e. What is the status of production order #1?
8. In the production process, which of the following screens in SAP are the primary
sources of instance level information?
*a. Stock Requirements List
*b. Production Order Status
c. Purchase Order History
d. Sales Order
e. Invoice
9. Typically, what of the following information would you find in a planned order?
*a. Requested delivery date
*b. Quantity requested
*c. Material number
d. Price/unit
e. Quantity completed
10. Typically, what of the following information would you find in a production order?
*a. Storage Location moved to
*b. Quantity completed
*c. Material number
d. Price/unit
e. Total price
11. Typically, what of the following information would you find in a material withdrawal
slip?
*a. Production quantity
*b. Quantity issued
*c. Material number
d. Price/unit
*e. Quantity needed
12. Typically, what of the following information would you find in a goods receipt
document?
*a. Received by
*b. Delivered by

*c. Material number

d. Price/unit
*e. Quantity
13. Which of the following documents are associated with the production process?
a. purchase order
*b. production order
c. sales order
*d. planned order
e. goods movement order
14. Which of the following are production processes and strategies?
*a. assembling
b. procuring
*c. discrete manufacturing
d. process manufacturing
e. outsourcing
15. In the production process, which of the following are master data?
*a. bill of materials
b. customers
*c. routings
*d. work centers
e. suppliers
16. Which of the following is not a step in the production process?
a. Request production
b. Create product
*c. Procure raw materials
d. Receive finished goods
*e. Sell finished goods
17. Which of the following is not a document in the production process?
a. Production order
b. Planned order
*c. Purchase order
d. Material withdrawal slip
*e. Sales order

CH5.1
1. Which of the following identifies the parts needed to make one unit of a product?
a. product routing
*b. bill of material
c. engineering drawing
d. packing list
2. Which of the following defines the steps or operations necessary to create the
product?
*a. product routing
b. bill of material
c. engineering drawing
d. packing list
3. Which of the following is the result of the product design process?
a. product routing
b. bill of material
*c. engineering drawing
d. packing list
4. When using an ES, which of the following is a key tool to review the current inventory
and upcoming productions orders for a specific product?
a. balance sheet
*b. stock requirements list
c. material withdrawal slip
d. planned order status
5. ____________ includes a list of all the materials needed to produce the quantity of
finished goods stated in the production order.
a. balance sheet
b. stock requirements list
*c. material withdrawal slip
d. planned order status
6. When using an ES, which of the following is a key tool to review the current status of
a specific order?
a. stock requirements list
b. material withdrawal slip
c. planned order status
*d. production order status
7. _______ is used to request that the company produce a specified quantity of goods.
a. Production Order
*b. Planned Order
c. Purchase Order

d. Sales Order
8. _______ provides written authorization to the shop floor to produce the stated
quantity of products.
*a. Production Order
b. Planned Order
c. Purchase Order
d. Sales Order
9. Which of the following is the sequence of activities in the Production Process?
*a. Request Production, Authorize Production, Issue raw Materials, Create Product,
Receive Finished Goods
b. Request Production, Issue raw Materials, Authorize Production, Create Product,
Receive Finished Goods
c. Authorize Production, Issue raw Materials, Request Production, Create Product,
Receive Finished Goods
d. Request Production, Authorize Production, Create Product, Issue raw Materials,
Receive Finished Goods
10. ___________ involves taking a number of component materials, such as a board,
nuts and bolts, and putting them together to produce the desired finished product, such
as a skateboard.
*a. assembling
b. manufacturing
c. discrete manufacturing
d. process manufacturing
11. ___________ is taking raw materials, such as plastic pellets, and creating
something from them, such as a plate or a cup.
a. Assembling
*b. Manufacturing
c. Discrete manufacturing
d. Process manufacturing
12. Examples of ___________ are furniture and computers.
a. assembling
b. manufacturing
*c. discrete manufacturing
d. process manufacturing
13. Examples of ___________ are oil and gas.
a. assembling
b. manufacturing
c. discrete manufacturing
*d. process manufacturing

14. ____________ is a separate process in organizations that is concerned with

creating new products based on such factors as market research and new production
techniques.
a. Production capacity
b. Production controller
c. Work centers
*d. Product design
15. ____________ is the number of skateboards the shop floor can produce in a
specified amount of time, such as per hour or per day.
*a. Production capacity
b. Production controller
c. Work centers
d. Product design

16. The ____________ is responsible for production in the organization.

a. production capacity
*b. production controller
c. work center
d. product design
17. The actual task of creating the product is accomplished in the __________.
a. production capacity
b. warehouse
*c. work center
d. product design
18. Which department creates a planned order?
*a. Warehouse
b. Production
c. Sales
d. Purchasing
19. Which department converts the planned order into a production order?
a. Warehouse
*b. Production
c. Sales
d. Purchasing
20. Which department issues raw materials?
*a. Warehouse
b. Production
c. Sales
d. Purchasing
21. Which department confirms production?
a. Warehouse
*b. Production
c. Sales
d. Purchasing
22. Which department creates the goods receipt?
*a. Warehouse
b. Production
c. Sales
d. Purchasing

23. Which of the following information is not necessary to process a production order?

a. Scrap quantity
b. Quantity completed
*c. Received by
d. Authorized by
24. Which of the following information is not necessary to process a planned order?
a. Requested delivery date
b. Delivery location
*c. production order number
d. planned order number
25. Which of the following information is not necessary to process a material withdrawal
slip?
a. Material number(s)
b. Received by
*c. Authorized by
d. Issued by