Chapter 1
Introduction to Business Processes
True-False Questions
1.
The most common organizational structure within modern organizations is the
... [Show More] functional structure.
Answer: True Difficulty: Easy Page Reference: 1
Section: The Functional Organizational Structure Practice:
2.
Losing sight of the big picture is commonly referred to as the silo effect.
Answer: True Difficulty: Medium Page Reference: 2
Section: The Functional Organizational Structure: The Silo Effect Practice:
3.
Systems that support end-to-end processes are called business processes.
Answer: False Difficulty: Medium Page Reference: 4
Section: Business Processes Practice:
4.
An enterprise system is a set of tasks or activities that produce desired outcomes.
Answer: False Difficulty: Easy Page Reference: 2
Section: The Functional Organizational Structure: Enterprise Systems Practice:
5.
Without the various steps of the business process, a company can’t successfully bill customers and ship products.
Answer: True Difficulty: Medium Page Reference: 4
Section: Business Processes Practice:
6.
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.
Answer: True Difficulty: Medium Page Reference: 5
Section: Business Processes Practice:
7.
The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs.
Answer: False Difficulty: Medium Page Reference: 5
Section: Business Processes Practice:
8.
The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization’s customers.
Answer: True Difficulty: Medium Page Reference: 5
Section: Business Processes Practice:
9.
The financial accounting process focuses on internal reporting to manage costs and revenues.
Answer: False Difficulty: Difficult Page Reference: 6
Section: Business Processes Practice:
10.
The procurement process includes all of the tasks involved in acquiring needed materials.
Answer: True Difficulty: Medium Page Reference: 6
Section: Business Processes: Procurement-Buy Practice:
11.
Within the production process, the issuing of raw materials takes place in the warehouse.
Answer: True Difficulty: Difficult Page Reference: 7
Section: Business Processes: Procurement-Make Practice:
12.
Materials encompass all the products, components, and parts that are used in an organization.
Answer: True Difficulty: Medium Page Reference: 8
Section: Business Processes: Material Planning-Plan Practice:
13.
Lead time is the time between placing the order and receiving confirmation that the item has been shipped.
Answer: False Difficulty: Easy Page Reference: 8
Section: Business Processes: Material Planning-Plan Practice:
14.
The purpose of material planning is to match supply with demand.
Answer: True Difficulty: Medium Page Reference: 8
Section: Business Processes: Material Planning-Plan Practice:
15.
Insufficient supply results in a situation called “stock out.”
Answer: True Difficulty: Medium Page Reference: 8
Section: Business Processes: Material Planning-Plan Practice:
16.
Excess supply will result in lower inventory costs because the company is eligible for a bulk rate.
Answer: False Difficulty: Difficult Page Reference: 8
Section: Business Processes: Material Planning-Plan Practice:
17.
Forecasts of finished goods are determined by data from material planning.
Answer: True Difficulty: Medium Page Reference: 9
Section: Business Processes: Material Planning-Plan Practice: [Show Less]