INMT 341 Exam 2 UPDATED Study
Guide QUESTIONS AND CORRECT
ANSWERS
In the P2P process, what 3 functions are crucial? - CORRECT ANSWERS
Record, Maintain, Report
What event causes 2 information processing events to occur in P2P? -
CORRECT ANSWERS Receipt of goods --> record receipt and
recognize liability
What is EOQ? - CORRECT ANSWERS Traditional approach to
ordering goods after they fall below a certain point (to allow for uninterrupted
flow of production)
What is Material Resource Planning? - CORRECT ANSWERS
Schedules resources to be purchased more closely to loads. --> reduces
inventory and shorter delivery times
Describe JIT processing - CORRECT ANSWERS Orders goods as
needed, eliminates waste
When is a purchase request open? - CORRECT ANSWERS Open: until
it's denied or becomes an order
What is a "blind copy?" - CORRECT ANSWERS A version of the
purchase order sent to the receiving department that DOES NOT include order
quantity; must physically count
, Describe ISO 9000 and ISO 14000 - CORRECT ANSWERS 9000:
intended to demonstrate vendor financial and ethical commitment to high
quality, safe products
14000: intended to demonstrate what the organization does to minimize effects
on environment
What function (record, maintain, report) does receiving take on? - CORRECT
ANSWERS Maintain --> custodial funciton
Recording a liability is what type of function? - CORRECT ANSWERS
Recordkeeping
What does a 3-way match compare? - CORRECT ANSWERS Vendor
Invoice, Purchase order, Receipts
What is a "ticker" file? - CORRECT ANSWERS Any file that is
organized according to the future date on which action is needed
What is Evaluated Receipt Settlement (ERS)? - CORRECT ANSWERS
Automatic settlement of receipts
Eliminates vendor invoice, creates ASN
What is perhaps the most crucial part in the buying decision process? -
CORRECT ANSWERS Selecting a vendor
What is considered the "heart of the company's value chain"? - CORRECT
ANSWERS The OTC process --> where money comes in and they
create value (customer)
Guide QUESTIONS AND CORRECT
ANSWERS
In the P2P process, what 3 functions are crucial? - CORRECT ANSWERS
Record, Maintain, Report
What event causes 2 information processing events to occur in P2P? -
CORRECT ANSWERS Receipt of goods --> record receipt and
recognize liability
What is EOQ? - CORRECT ANSWERS Traditional approach to
ordering goods after they fall below a certain point (to allow for uninterrupted
flow of production)
What is Material Resource Planning? - CORRECT ANSWERS
Schedules resources to be purchased more closely to loads. --> reduces
inventory and shorter delivery times
Describe JIT processing - CORRECT ANSWERS Orders goods as
needed, eliminates waste
When is a purchase request open? - CORRECT ANSWERS Open: until
it's denied or becomes an order
What is a "blind copy?" - CORRECT ANSWERS A version of the
purchase order sent to the receiving department that DOES NOT include order
quantity; must physically count
, Describe ISO 9000 and ISO 14000 - CORRECT ANSWERS 9000:
intended to demonstrate vendor financial and ethical commitment to high
quality, safe products
14000: intended to demonstrate what the organization does to minimize effects
on environment
What function (record, maintain, report) does receiving take on? - CORRECT
ANSWERS Maintain --> custodial funciton
Recording a liability is what type of function? - CORRECT ANSWERS
Recordkeeping
What does a 3-way match compare? - CORRECT ANSWERS Vendor
Invoice, Purchase order, Receipts
What is a "ticker" file? - CORRECT ANSWERS Any file that is
organized according to the future date on which action is needed
What is Evaluated Receipt Settlement (ERS)? - CORRECT ANSWERS
Automatic settlement of receipts
Eliminates vendor invoice, creates ASN
What is perhaps the most crucial part in the buying decision process? -
CORRECT ANSWERS Selecting a vendor
What is considered the "heart of the company's value chain"? - CORRECT
ANSWERS The OTC process --> where money comes in and they
create value (customer)
