Question 1

Which of the following processes focuses on product improvement?

Accepted Answer

Research and development is the process of improving products through innovation, testing, and other methods. Engineering focuses on designing and building products, production is the process of manufacturing products, and capital budgeting involves allocating funds for various business projects.

Question 2

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

Accepted Answer

A production schedule outlines the specific timing required for a sales order, including the dates and times designated for the production run. Maintenance and control schedule refers to the timing and tasks required to maintain equipment and control quality, while Human resources schedule outlines the availability and usage of labor. Production orders schedule may refer to a more detailed breakdown of specific tasks within the production schedule, but does not necessarily include timing for sales orders. Therefore, A) Production schedule is the best choice.

Question 3

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

Accepted Answer

The process responsible for preparing bill of materials and the operations list is Engineering. This involves designing and specifying the materials, components, and processes needed to manufacture a product.

Question 4

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

Accepted Answer

A production order authorizes production activities for a particular sales order or forecasted needs. The production schedule outlines the overall plan for production, while the maintenance and control process and human resources process are separate areas of concern that do not involve the authorization of production activities.

Question 5

The major activities within the conversion process include all but

Accepted Answer

The major activities within the conversion process include optimizing the use of resources, controlling production flows, and preparing cost and financial accounting records. While strategic planning is important for supporting operational goals, it is not a direct activity within the conversion process itself.

Question 6

Which of the following is NOT a primary component of the logistics function?

Accepted Answer

Production is not a primary component of the logistics function. The primary components are planning, resource management, and operations. Production may be related to the logistics function, but it is not considered a primary component.

Question 7

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

Accepted Answer

The operations list outlines the sequence of operations or steps required to produce a product, detailing the chain of events in the production process.

Question 8

The process of logical, systematic flow of resources throughout the organization is referred to as:

Accepted Answer

The process of logical, systematic flow of resources throughout the organization is called logistics. This involves the planning, implementation, and coordination of the movement and storage of goods, services, and information within the organization, from suppliers to customers. Logistics helps organizations to optimize their operations and reduce costs while providing high-quality products and services to customers. Planning and reporting are important components of logistics, but they are not the same as logistics itself. Sales forecast is related to logistics, but it is a specific aspect of sales planning, not logistics in general.

Question 9

Which of the following company activities would NOT be considered a productive activity?

Accepted Answer

All the options listed (manufacture of automobiles, treatment of patients in a medical facility, and providing consulting services) are considered productive activities because they all involve the creation of goods or the provision of services that add value.

Question 10

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

Accepted Answer

The routing slip is used in manufacturing to detail the descriptions and quantities of materials that are taken into production for a specific sale or authorized production activity. It guides the process flow and material usage.

Question 11

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

Accepted Answer

Planning is the component of logistics that directs the focus of operations by determining what needs to be achieved, how to achieve it, and when it should be achieved. It involves creating a strategic plan that outlines specific logistics objectives, tactics, and timelines to ensure that goods and services are efficiently produced, stored, and transported to meet customer demand. While reporting and sales forecasting are important elements of logistics, they do not necessarily dictate the focus of operations.

Question 12

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:

Accepted Answer

The responsible for managing the placement and development of sufficient qualified personnel, hiring and training workers, as well as maintaining records of their performance, is the role of the Human Resources department. The other departments mentioned, such as Production Schedule and Production Orders, deal with the planning and execution of manufacturing processes, while the Maintenance and Control department handles the maintenance and upkeep of equipment and facilities.  Therefore, the best choice is D - Human Resources department.

Question 13

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

Accepted Answer

Scheduling is the process of planning the timing for production activities. Operations list is a document that outlines the steps required to complete a particular operation. Bill of materials is a list of raw materials, components, and subassemblies needed to produce a finished product. Capital budgeting is the process of determining how to allocate financial resources for long-term investments.

Question 14

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

Accepted Answer

The process concerned with maintaining the capital resources used to support production is referred to as maintenance and control. This process ensures that the physical assets, such as machinery and equipment, required for production are functioning properly and efficiently. This includes regular maintenance, repairs, and replacement of resources when necessary to avoid downtime or production delays. The other options (A, B, and D) are not directly related to maintaining capital resources.

Question 15

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

Accepted Answer

The routing process determines the path that materials will take through the production process, including the sequence of operations and the workstations where each operation will be performed.

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:

Accepted Answer

Inventory control department is responsible for managing and recording the movement of inventory in the conversion process. They are responsible for monitoring inventory levels, tracking inventory movements, and managing inventory to ensure adequate supply as well as minimizing waste and excess inventory. Production schedule department is responsible for coordinating production and scheduling resources, maintenance and control department is responsible for ensuring that equipment is functioning correctly, and human resources department is responsible for managing the people who work in the organization.

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.

Accepted Answer

Economic order quantities (EOQ) is the most efficient quantity of products to purchase. It takes into account the cost of ordering, holding, and shortage costs to determine the optimal order size. By using EOQ, a business can minimize inventory costs while ensuring that enough inventory is available to meet demand.

Question 18

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

Accepted Answer

The answer of The ________ _________ function concerns the control...

Question 19

The form that specifies the components of a product, including descriptions and quantities of materials and parts needed is the:

Accepted Answer

The bill of materials is a key document that lists all the components, parts, and materials that are required to produce a product. It is used by production planners and managers to ensure that the right materials are available and allocated for the manufacturing process. The other options are not relevant to describing the components needed for a product.

Question 20

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

Accepted Answer

Inventory warehousing involves managing the holding area for finished goods awaiting sale. Purchase orders, shipping notices, and purchase requisitions are all related to the procurement process rather than the warehousing process.

Quiz 11: Conversion Processes and Controls