Deck 8: Accounting Information Systems and Business Processes: Part II

Question 1

One distinguishing feature of organizations in the professional service industry is the difficulty in measuring the quantity and quality of their output.

Answer 1

True

Question 2

With a just-in-time inventory approach, raw material inventories are always zero.

Answer 2

False

Question 3

The primary objective of the production process is to minimize the use of raw materials in the production process.

Answer 3

False

Question 4

With a job costing system it is not possible to keep track of costs for each item or group of items produced.

Question 5

The term vertical market refers to software distribution processes.

Question 6

Financial planning models are useful to financial managers in helping them to determine an optimal strategy for acquiring and investing an organization's financial resources.

Question 7

Effective cash management is not an objective of the financing process.

Question 8

The production process is only present in service organizations.

Question 9

Deposit slips and remittance advices are examples of source documents associated with the financing process.

Question 10

The bill of materials lists the types and quantities of parts needed to assemble each unit of product.

Question 11

The human resource management process is the same thing as the payroll process.

Question 12

A cash budget is a primary output of the financing process.

Question 13

The financing process concerns a company's acquisition and use of financial resources.

Question 14

Production cost reports are useful for internal control since they help in calculating budget variances.

Question 15

Time and billing features in accounting software are important to engineering, legal, and accounting firms.

Question 16

Inputs to the production process include job time cards, material requisition forms, and the master production schedule.

Question 17

An AIS's cost accounting subsystem is an important part of the production process.

Question 18

Not-for-profit organizations focus primarily on the flow of funds rather than income in their internal accounting systems.

Question 19

Point-of-sale accounting systems are important in the health care industry.

Question 20

Third party billing refers to the payment of many health care bills by provincial governments rather than by patients.

Question 21

Job costing information systems are most appropriate for:

A)Home builders
B)Textbook publishers
C)Beverage companies
D)both a and b are appropriate industries for job costing systems

Question 22

It is generally true of not-for-profit organizations that they:

A)Are profit-oriented despite their name
B)Are always evaluated using profit measures
C)Are not governed by accounting standards
D)Emphasize funds rather than income in their internal accounting systems

Question 23

Third party billing refers to:

A)Billing to clients by professional service organizations
B)Billing to provincial governments by health care organizations
C)The fact that the customer often does not pay directly for goods purchased in the health care industry
D)both b and c are correct

Question 24

The production process begins with a request for raw materials and ends with the transfer of finished goods to warehouses.

Question 25

The primary objective of a manufacturing organization's production process is to:

A)Maintain inventories at a zero level
B)Convert raw materials into finished goods as efficiently as possible
C)Make sure that there are no product defects
D)Maintain the documentation and report on an organization's manufacturing process

Question 26

Inputs to the financing process include:

A)Remittance advices, deposit slips, cheques, and stock market data
B)Remittance advices, deposit slips, cheques, and receiving reports
C)Deposit slips, cheques, receiving reports, and purchase requisitions
D)Deposit slips, cheques, purchase requisitions, and financial institution profiles

Question 27

A major objective of professional service organizations is to:

A)Decrease billable hours
B)Increase billable hours
C)Increase time spent training employees
D)Bill customers as frequently as possible

Question 28

Which of the following is not a characteristic associated with professional service organizations?

A)Lack of a profit motive
B)Absence of inventories
C)Importance of human resources
D)Difficulty in measuring the quantity and quality of output

Question 29

The objective of the fixed asset management function is to manage the purchase,
depreciation, and disposal of an organization's fixed assets.

Question 30

An organization's working capital consists of:

A)Its chequing accounts
B)Both chequing and savings accounts
C)Bank accounts and other liquid assets
D)Coin and currency only

Question 31

Which of the following is an example of a not-for-profit organization?

A)Consulting firm
B)State university
C)Public hospital
D)both b and c are correct

Question 32

The largest expense item on a manufacturing organization's income statement is most likely to be:

A)Salaries for production workers
B)The depreciation associated with manufacturing equipment
C)The cost of direct materials
D)Cost of goods sold

Question 33

Time and billing systems are most often used by:

A)Health care organizations
B)Professional service organizations
C)Retail organizations
D)Not-for-profit organizations

Question 34

Which of the following characteristics are common to both service and not-for-profit organizations?

A)Importance of professional employees
B)Difficulty in measuring the quality and quantity of output
C)Inability to inventory product
D)all of the above

Question 35

The objective of a manufacturing organization's production process is to convert
raw materials to finished goods as quickly as possible to free up cash resources.

Question 36

All of the following are input documents for the production process, except:

A)A master production schedule
B)A production order
C)A material requirements planning document
D)A bill of materials

Question 37

The AIS for the health care industry is particularly complex due to third party billing.

Question 38

Which of the following is not a concern of the financing process?

A)Effective cash management
B)Optimizing an organization's cost of capital
C)Minimizing an organization's borrowings
D)Projecting cash flows

Question 39

Which of the following statements is not true?

A)Time and billing systems are similar to job order costing systems
B)Time and billing systems are an important component of an AIS for manufacturing firms
C)A difficult problem for professional service organizations is tracking staff time
D)Time and billing systems are important in the professional service industry

Question 40

Which of the following is normally more important for a not-for-profit organization compared to a profit-oriented organization?

A)Long-range goals
B)Earning an adequate level of income each accounting period
C)Long-range budgetary planning and controlling system
D)Short-range budgetary planning and controlling system

Question 41

RFIDs allow firms to:

A)Track inventory more effectively
B)Eliminate the use of databases
C)Reduce the costs of ERP systems
D)all of the above

Question 42

Important source documents for the human resource management process do not include:

A)Valid vendor lists
B)Time sheets
C)Payroll deduction authorizations
D)Tax withholding forms

Question 43

Resource Management Process includes which of the following?

A)Human resource management and fixed asset management
B)Human resource management, inventory management, and fixed asset management
C)Human resource management only
D)Personnel management, payroll management, and fixed asset management

Question 44

Business process reengineering:

A)Is an incremental approach to redesigning business processes
B)May involve redesigning business processes from scratch
C)Is rarely successful in cutting an organization's costs
D)Is always welcomed by an organization's employees

Question 45

According to the text, which of the following is an output of the human resource management process?

A)Retired employee roster
B)List of training programs for employees
C)Employee listings
D)none of the above

Question 46

Business process reengineering efforts sometimes fail because:

A)Management gets too involved in the process
B)Management is too optimistic regarding its expectations from its implementation
C)Management support can never overcome employee resistance
D)Employees will never accept change

Question 47

According to the text, all of the following are objectives of the human resource management process except:

A)Hiring, training, and employing workers
B)Counseling employees on retirement and medical benefits
C)Maintaining employee earnings records
D)Reporting on payroll deductions

Question 48

Which of the following is most likely the primary reason that organizations are adopting enterprise asset management EAM)systems?

A)To reduce overall operating expenses
B)To automate manual operations
C)To reduce the number of employees labour costs)
D)none of the above

Question 49

AISs can be used to evaluate the performance of not-for-profit organizations by:

A)Using various process measures
B)Comparing budget goals to actual performance
C)Using a number of nonmonetary measures of performance
D)all of the above

Question 50

Lean manufacturing involves:

A)Decreasing production
B)Using nonmonetary measures of performance
C)Eliminating wasteful processes
D)all of the above

Question 51

Which of the following technologies are now used in conjunction with automated production process systems to increase efficiencies?

A)Radio frequency technology
B)Bar code scanners
C)RFIDs and advanced electronic tags
D)all of the above
E)none of the above

Question 52

The most significant difference in the AISs of retail organizations versus other vertical market organizations is the:

A)Sophistication of the systems used
B)Type of training programs available to employees
C)Point-of-sale data capture
D)Structure of information that the system provides to managers

Question 53

Healthcare organizations:

A)Are always not-for-profit enterprises
B)Do not include nursing homes in their industry segment
C)Have great difficulty in measuring outputs
D)Do not include patient scheduling functions in their AISs

Question 54

The purpose of Business Process Management is to improve business processes across the organization.Due to advances in technology:

A)Managers can streamline these processes
B)Human resources managers can automate many routine processes
C)It is more costly to manage all processes throughout the organization
D)none of the above