Deck 9: Functional Area and Compliance Systems

Question 1

The purpose of control is to identify deviations from goals as soon as possible in order to take corrective action. Tracking sales, inventory levels, orders, and customer support are examples of control activities. What type of company data is most important at this level?

A) Internal data
B) External data
C) Vendor data
D) Administrative data

Answer 1

A

Question 2

In 2012, there was a noticeable increase in the use of Transportation Management Systems TMS). One of the factors contributing to the growth of TMS is:___________________

A) Logistics
B) Timing
C) Growth of intermodal transport
D) Management of suppliers

Answer 2

C

Question 3

What does SWOT analysis represent?

A) Strategy, willingness, outcome and timing
B) Strengths, weaknesses, opportunities, and threats
C) Success, waste, observation and top-down
D) System, wiki, operations, technology

Answer 3

B

Question 4

At what level do senior or-top level management plan and make decisions that set or impact the long-term direction of the entire organization.

A) Operational level
B) Managerial or administrative level
C) Strategic level
D) Executive level

Question 5

Data requirements of the operational level units are extensive and relatively routine, rarely changing because they depend on fixed sources of input and __________, which is a set of written instructions that document a routine or repetitive activity that is followed by an organization.

A) Compliance systems
B) Strategic marketing plan
C) Standard Operation Procedures SOP)
D) Quality control

Question 6

When work flows and data flows between departments do not work well or coordination is difficult, they cause delays, errors, and poor customer service. This is why ___________ the functional departments via information systems that enable communication, coordination, and control is essential.

A) Managing
B) Integrating
C) Assisting
D) Developing

Question 7

Increasing the number and frequency of high-quality ___________ increases the chance of being top-of-mind with customers when they are deciding on entertainment. Knowing what customers want can be a powerful competitive edge.

A) Touchpoints
B) Communication
C) Promotions
D) Feedback

Question 8

In terms of manufacturing, the business function that is responsible for transforming inputs into useful outputs, is: ________________

A) SWOT
B) Production and operations management POM)
C) Online transaction processing OLTP)
D) Standard Operation Procedures SOP)

Question 9

The success of International Speedway Corporation ISC) mission depends largely on its ability to fill seats at events and minimize _______ in marketing campaigns.

A) Time
B) Effort
C) Waste
D) Value

Question 10

Ideally, operational ISs also called functional area ISs) provide ____________, knowing what's happening in any department or function at any time.

A) Quick response
B) Transparency
C) Integration
D) Operational performance

Question 11

Your textbook described how First Choice Ski, a UK based tour operator improved sales by using real-time reporting. First Choice Ski uses a Search Phrases Report to leverage factors driving visitors to the website, while the Internal Campaign Report helps them monitor and manage their many travel promotions providing them with the ability to make _____________________based on quantifiable, actionable, data-driven information.

A) Performance improvements
B) Web analytics
C) Lean choices
D) Data accuracy

Question 12

Data that are lost, destroyed, or compromised have financial implications. As such it is critical that businesses have ________ to ensure that data are secure, accurate, and that integrity is maintained.

A) Compliance systems
B) Strategic marketing plan
C) Quality control
D) Standard Operation Procedures SOP)

Question 13

International Speedway used data to personalize e-mails and promotions to specific fans, creating individualized campaigns delivered through consumers' preferred channels) determined by a customer's profile. This is an example of _________________.

A) Touchpoints
B) Communication
C) Promotions
D) Integrated marketing

Question 14

A key benefit of ________ is that they minimize variation and promote quality through consistent implementation of a process or procedure within the organization, even if there are temporary or permanent personnel changes.

A) Compliance systems
B) Standard Operation Procedures SOP)
C) Strategic marketing plan
D) Laws and regulation

Question 15

Your textbook describes three levels of management using a pyramid model. Which of the following is not one of the management levels in the model?

A) Operational level
B) Managerial or administrative level
C) Strategic level
D) Executive level

Question 16

Data from functional ISs are used extensively by enterprise applications, including business intelligence BI), e-commerce, customer relationship management CRM), and __________________.

A) Supply chain management SCM)
B) Process management
C) External systems
D) Integration

Question 17

Only operations that meet data validity standards are allowed. For instance, systems that record checking accounts only allow unique check numbers for each transaction. Any operation that repeated a check number would fail to insure that the data in the database is correct and accurate. Network failures can also cause this type of data problem.

A) Atomicity
B) Consistency
C) Isolation
D) Durability

Question 18

Your textbook described how First Choice Ski, a UK based tour operator improved sales by using real-time reporting. In the highly competitive tour operator industry, profit margins are tight. Being lean and responsive is key to maintaining a profitable business. By using _______________and real-time reporting, First Choice Ski was able to monitor and quickly respond to the behaviors of visitors on its travel web site.

A) Facebook
B) Surveys
C) Yahoo! Web Analytics
D) Google Search

Question 19

Each of the following are considered basic functional areas and are generally supported by information systems: manufacturing and production, ________, finance, IT, sales and marketing, and HR

A) Administrative
B) Accounting
C) Quality control
D) Organizational

Question 20

Data Integrity: Data integrity with real-time systems involves the ACID test, which is short for _______?

A) Atomicity, communication, integrity, and data
B) Atomicity, consistency, isolation, and durability
C) Authenticity, currency, information, and design
D) Accuracy, clarity, information, and data

Question 21

_________________ can expand the capacity to create new products, services, channels, and market opportunities that lead to new revenue streams.

A) Human resources
B) Manufacturing execution system MES)
C) Sales and marketing
D) Flexible manufacturing systems FMS)

Question 22

Why is managing inventory important to profit margins?

A) Because of numerous costs associated with strategy
B) Because of numerous costs associated with inventory
C) Because of numerous costs associated with big data
D) Because of numerous costs associated with logistics

Question 23

Automation of as many of the manufacturing processes as possible is one of the basic goals of:_____________

A) Computer integrated manufacturing CIM)
B) Manufacturing execution system MES)
C) Transportation management systems TMS)
D) Flexible manufacturing systems FMS)

Question 24

In deciding on advertising and other marketing efforts, managers need to know the profit contribution or profit margin, which is based on

A) Net revenue - gross expenses
B) Sale price - cost of goods
C) Costs + revenue
D) Costs + net profit

Question 25

In 2012, Agistix agistix.com) introduced________________ which aggregates and standardizes a company's shipping activities and provides shippers with a comprehensive view into every shipment they have paid for anywhere in the world.

A) Total visibility
B) Cloud computing
C) Buffer stock
D) Inventory control

Question 26

Which of the following attempts to minimize the total cost of inventory while maintaining optimal inventory levels?

A) HR
B) Online transaction processing OLTP)
C) Data accuracy
D) Inventory control systems

Question 27

________________ work by offering customers an incredible offer for a very short time. This sales method lends itself perfectly to the immediacy of social media, and it's a next stage in social commerce

A) Flash sales
B) Rapid Point of Purchase Promotions RP3)
C) Online auctions
D) Membership sales

Question 28

_________________ ads appear based on the keywords or phrases a user types during an online search.

A) Push-through
B) Pull-through
C) Microsurvey
D) Segmented

Question 29

In order to operate efficiently, many businesses use ____________ which requires suppliers to deliver small lots on a daily or frequent basis, and production machines are not necessarily run at full capacity.

A) Online transaction processing OLTP)
B) Lean manufacturing systems
C) Just-in-time JIT) inventory management
D) Standard Operation Procedures SOP)

Question 30

To minimize costs associated with managing inventory, the POM department has to decide when to order and how much to order. One inventory model that is used to answer both questions is the ___________________model. It takes all costs into consideration.

A) Economic order quantity EOQ)
B) Online transaction processing OLTP)
C) Transportation management systems TMS)
D) Standard Operation Procedures SOP)

Question 31

Profitability metrics for products and services can be derived from the ______________ system.

A) Marketing management
B) Cost accounting
C) Sales automation systems
D) Profit center

Question 32

What system provides data about the quality of incoming materials and parts, as well as the quality of in-process semi-finished and finished products? These systems record the results of all inspections and compare actual results to expected results.

A) Economic order quantity EOQ)
B) Manufacturing quality control QC) systems
C) Transportation management systems TMS)
D) Just-in-time JIT)

Question 33

Coordination of several complex processes, namely ordering, purchasing or procurement, inbound logistics receiving), and outbound logistics shipping) activities is called _________________.

A) HR
B) Online transaction processing OLTP)
C) Data accuracy
D) Logistics management

Question 34

Attempting to minimize holding costs by not taking possession of inventory until it is needed in the production process is referred to as ______________________.

A) Economic order quantity EOQ)
B) Online transaction processing OLTP)
C) Transportation management systems TMS)
D) Just-in-time JIT)

Question 35

At publicly traded firms, the accounting and finance functions are responsible for accurately disclosing reporting) the firm's financial condition to regulatory agencies. For example, firms must file____________________ to the SEC. Financial statements include Statements of Financial Position, Comprehensive Income, Changes in Equity, and Cash Flows.

A) Quarterly and annual marketing statements
B) Quarterly and annual financial statements
C) quarterly and annual profitability margins
D) quarterly and annual manufacturing statements

Question 36

_________________ pay-per-click ads use data about the person to determine whether the ad should appear. This capability creates opportunities for highly targeted advertising programs.

A) Push-through
B) Pull-through
C) Microsurvey
D) Segmented

Question 37

A key element of the CIM strategy was the deployment of two __________________ that can accommodate the manufacture of different parts at different volumes.

A) Computer integrated manufacturing CIM)
B) Manufacturing execution system MES)
C) Transportation management systems TMS)
D) Flexible manufacturing systems FMS)

Question 38

Prior to the adoption of this process, production managers were given many pieces of information such as time, attendance, receiving reports, inspection reports, and so on to figure out how to accomplish production tasks. The information was late, rarely current or reliable, voluminous, and extremely difficult to assimilate. This system helps production managers better use information to execute manufacturing plans.

A) Computer integrated manufacturing CIM)
B) Manufacturing quality control QC) systems
C) Transportation management systems TMS)
D) Just-in-time JIT)

Question 39

A _______________________ is similar to Computer Integrated Manufacturing, but is based much more on standard reusable application software instead of custom designed software programs. It eliminates the information gap that existed in previous years by providing real time information.

A) Quality control systems QC)
B) Manufacturing execution system MES)
C) Transportation management systems TMS)
D) Just-in-time JIT)

Question 40

Synchronizing inbound and outbound flows of materials or goods is an example of:_____________________

A) HR
B) Online transaction processing OLTP)
C) Data accuracy
D) Logistics management

Question 41

Job rotation is when more than one person should be familiar with each transaction cycle in the business where possible. Rotation of jobs helps prevent over reliance on a single individuals and reduces the chances of ___________.

A) Push-throughs
B) Interactive data
C) Fraud
D) Taxonomy

Question 42

__________ on LinkedIn, a professional social networking site, has become very popular because it is more effective and efficient than traditional approaches.

A) Risk management
B) Distribution
C) Recruitment
D) Forecasting

Question 43

________________ is the process of analyzing and selecting investments expenditures) with the highest ROI for the company.

A) Capital budgeting
B) Localized budgeting
C) Interactive data
D) Marketing strategy

Question 44

The U.S. GAAP Financial Reporting ___________ is an electronic dictionary of business reporting elements used to report business data.

A) Directory
B) Taxonomy
C) Tax laws
D) Tax audit

Question 45

Providing flexibility in selecting benefits is viewed as a competitive advantage in large organizations. Employees can self-register for specific benefits using menus from a __________ or __________.

A) Corporate portal; voice technology
B) Blog; wiki
C) Social network; extranet
D) Mobile or Payroll app

Question 46

Improved relationships with employees result in better retention and higher productivity. Therefore, companies invest in __________, which includes self-services such as tracking personal information and online training.

A) Benefits management
B) Employee relationship management
C) Budgeting management
D) Intelligent agents

Question 47

A system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners is called ________________________.

A) Check and balances
B) Regulatory compliance
C) Internal fraud
D) Fraud risk management

Question 48

Human resources information systems HRISs), which were implemented on company networks since the late 1990s, have been moved to intranets and __________; and HR apps are leased in __________ arrangements.

A) Social networks; vendor
B) Proprietary databases; ERM
C) Cloud computing; software as a service SaaS)
D) Virtual worlds; intelligent agent

Question 49

Each level of management has its own data needs, decision making responsibilities, and time horizons.

Question 50

_____________________ can provide investors quicker access to the data they want in a form that's easily used and can help companies pre- pare the information more quickly and more accurately.

A) Interactive investments
B) Interactive data
C) Marketing
D) Tax audit

Question 51

Within the organization, business functions are connected by the data and reports they share or generate.

Question 52

__________ is the field that deals with policies, procedures, compliance requirements associated with acquiring and keeping people in organizations.

A) Accounting
B) Human resources
C) Marketing
D) Payroll

Question 53

Fraud is a crime with severe consequences. _______________ fraud is a term that refers to a variety of criminal behaviors perpetrated by an organization's own employees or contractors.

A) Insider trading
B) White collar
C) Computer
D) Internal

Question 54

Some of the most innovative HR developments are in the area of live online training

Question 55

What is the markup language that was developed for business and financial reporting?

A) XBRL
B) XBOX
C) HTML
D) JAVA

Question 56

Training activities that are part of HRM may involve __________ issues in recruiting and selecting employees and in evaluating performance, in part because these activities make use of private confidential information.

A) Strategic
B) Operational
C) Ethical
D) Budget

Question 57

Information systems are used to protect companies against fraud. Which of the following is not one of the fraud risk factors identified in your textbook?

A) A high level of trust in employees without sufficient oversight to verify that they are not stealing from the company
B) Relying on informal processes of control
C) A mindset belief) that internal controls and fraud prevention systems are too expensive to implement
D) Assigning a narrow range of duties to employees limiting their opportunities to commit fraud

Question 58

Which of the following is not one of the factors holding companies back from implementing HR SaaS solutions to efficiently transform and improve the HR function?

A) Security
B) Lower costs
C) Quality of service
D) Concern about integration with in-house applications

Question 59

To aid the SEC in regulating the securities industry, publically traded firms are required to use a new _______________________, where data items are tagged to make them easily searchable.

A) Internal network
B) Financial statement
C) Data disclosure compliance system
D) Financial dashboard

Question 60

A major reason organizations fail is their inability to ____________ and/or secure sufficient cash flow

A) Forecast
B) Manage
C) Strategize
D) Budget

Question 61

Data backups by themselves provide durability to protect data integrity in case of a system crash or other failure.

Question 62

Tracking sales, inventory levels, orders, and customer support are examples of control activities.

Question 63

Oracle, Siemens, and POM vendors offer a demand-driven __________ system, whose objective is to remove waste of any kind from production and operations.

Question 64

One of the most effective fraud prevention techniques is the perception of detection and punishment.

Question 65

A standard operating procedure, or SOP, is a loosely defined and suggested procedure for completing a process or function, such as a quality control process or function.

Question 66

At the __________ level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

Question 67

With XBRL, all of the company's financial data are collected, consolidated, published, and consumed without the need to use Excel spreadsheets.

Question 68

Cash flow projection is the process of identifying the financing of assets, including software, that need to be acquired or developed. It includes comparing alternatives or evaluating buy-versus-lease options.

Question 69

IT provides systems and apps that support the needs of ______________ area systems such as manufacturing and production, accounting, finance and HR.

Question 70

HRM applications involve ethical issues, particularly in recruiting and selecting employees and in evaluating performance.

Question 71

Inaccurate cash flow projection led to the demise of the investment bank Lehman Brothers in September 2008.

Question 72

Data validation techniques, such as validating that the zip code is consistent with the address, are used to detect and correct data entry errors.

Question 73

__________ support advertising, market research, intelligence gathering, getting products and services to customers, and responding to customers' needs.

Question 74

At the managerial or administrative level, middle-level managers make __________ decisions that focus on intermediate-term issues to fulfill the organization's mission, objectives, and strategy.

Question 75

At the strategic level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

Question 76

KIA Motors introduced an intelligent QC system to analyze customer complaints so they could more quickly investigate and make corrections.

Question 77

Reservation systems used by airlines and for concert tickets sales are online transaction processing OLTP) systems because data are processed as soon as transactions occur, in real time.

Question 78

The purpose of __________ is to identify deviations from objectives and plans as soon as possible in order to take corrective action.

Question 79

At the operational level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization's mission, objectives, and strategy.

Question 80

Relying on informal processes of control is a factor that increases a company's exposure to fraud.