Question 1

Capital budgeting:
A)Is responsible for the issuance of stocks and bonds to finance operations.
B)Plans the capital resources needed to support operations.
C)Is responsible for the procurement of production materials.
D)Is not a function of a company once established and functioning.

Accepted Answer

Plans the capital resources needed to support operations.

Question 2

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?
A)The routing slip.
B)The shipping notice.
C)The purchase requisition.
D)The sales order.

Accepted Answer

The routing slip.

Question 3

The issuance and movement of materials into the various production phases is referred to as:
A)Production scheduling process.
B)Inventory control process.
C)The routing process.
D)The production orders process.

Accepted Answer

The routing process.

Question 4

The form that describes the chain of events that constitute a product's production is referred to as the:
A)Operations list.
B)Bill of materials.
C)Engineering.
D)Capital budgeting.

Accepted Answer

Operations list.

Question 5

The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the:
A)Production schedule.
B)Production orders.
C)Maintenance and control process.
D)Human resources process.

Accepted Answer

Production orders.

Question 6

Within the planning component of the logistics function, which of the following processes is responsible for preparing bill of materials and the operations list?
A)Research and development
B)Capital budgeting
C)Engineering
D)Scheduling

Accepted Answer

Engineering

Question 7

Which of the following involves managing the holding area for finished goods awaiting sale?
A)Purchase orders
B)Shipping notices
C)Purchase requisitions
D)Inventory warehousing

Accepted Answer

Inventory warehousing

Question 8

Engineering is responsible for:
A)Designing the product while operations is responsible the bill of materials and the operations list.
B)Designing the plant and equipment used in manufacturing.
C)Is responsible for the procurement of production equipment.
D)Designing the product and creating the bill of materials and the operations list.

Accepted Answer

Designing the product and creating the bill of materials and the operations list.

Question 9

The process that is concerned with maintaining the capital resources used to support production is referred to as:
A)The production schedule.
B)Production orders.
C)Maintenance and control.
D)The human resources process.

Accepted Answer

Maintenance and control.

Question 10

This schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run.
A)Production schedule
B)Production orders schedule
C)Maintenance and control schedule
D)Human resources schedule

Accepted Answer

Production schedule

Question 11

Which of the following processes focuses on product improvement?
A)Engineering
B)Research and development
C)Production
D)Capital budgeting

Accepted Answer

Research and development

Question 12

The _______ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.
A)Raw materials
B)Inventory warehousing
C)Inventory stores
D)Quality control

Accepted Answer

Inventory stores

Question 13

The responsible for managing the placement and development of sufficient qualified personnel which includes hiring and training workers as well as maintaining records of their performance is the task of the:
A)Production schedule department.
B)Production orders department.
C)Maintenance and control department.
D)Human resources department.

Accepted Answer

Human resources department.

Question 14

The operations component of the logistics function has which of the following elements?
A)Maintenance and control.
B)Production.
C)Inventory control.
D)Capital budgeting.

Accepted Answer

Production.

Question 15

The component of the logistics function that directs the focus of operations is the:
A)Operations component.
B)Resource management component.
C)Planning component.
D)The sales component.

Accepted Answer

Planning component.

Question 16

The responsibility for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process is assigned to the:
A)Production schedule department.
B)Inventory control department.
C)Maintenance and control department.
D)Human resources department.

Accepted Answer

Inventory control department.

Question 17

One inventory control function that is important to the conversion process is the determination of _______, or the most efficient quantity of products to purchase.
A)Economic purchase amount
B)Economic order quantities
C)Materials resource quantities
D)Resource purchase quantities

Accepted Answer

Economic order quantities

Question 18

The responsibility to conduct make/buy decisions is usually given to:
A)Engineering.
B)Capital budgeting.
C)Operations.
D)Research and development.

Accepted Answer

Research and development.

Question 19

The major function within the conversion process is the:
A)Sales order function.
B)Sales forecast function.
C)Logistics function.
D)Reporting function.

Accepted Answer

Logistics function.

Question 20

The process that plans the timing for production activities is referred to as:
A)Operations list.
B)Bill of materials.
C)Scheduling.
D)Capital budgeting.

Accepted Answer

Scheduling.

Quiz 11: Conversion Processes and Controls

Capital budgeting:

Which document provides the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity?

The issuance and movement of materials into the various production phases is referred to as:

The form that describes the chain of events that constitute a product's production is referred to as the:

The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the:

Within the planning component of the logistics function, which of the following processes is responsible for preparing bill of materials and the operations list?

Which of the following involves managing the holding area for finished goods awaiting sale?

Engineering is responsible for:

The process that is concerned with maintaining the capital resources used to support production is referred to as:

This schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run.

Which of the following processes focuses on product improvement?

The _______ function concerns the control of raw materials inventory held in storage or in holding areas, waiting for processing.

The responsible for managing the placement and development of sufficient qualified personnel which includes hiring and training workers as well as maintaining records of their performance is the task of the:

The operations component of the logistics function has which of the following elements?

The component of the logistics function that directs the focus of operations is the:

The responsibility for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process is assigned to the:

One inventory control function that is important to the conversion process is the determination of _______, or the most efficient quantity of products to purchase.

The responsibility to conduct make/buy decisions is usually given to:

The major function within the conversion process is the:

The process that plans the timing for production activities is referred to as: