University of Texas(Dallas) - ERP 6319: Test Bank 1. Questions and Answers.

University of Texas(Dallas) - ERP 6319: Test Bank 1. Questions and Answers. Chapter 1 Introduction to Business Processes True-False Questions 1. The most common organizational structure within modern organizations is the functional structure. Answer: True Difficulty: Easy Page Reference: 1 Section: The Functional Organizational Structure Practice: 2. Losing sight of the big picture is commonly referred to as the silo effect. Answer: True Difficulty: Medium Page Reference: 2 Section: The Functional Organizational Structure: The Silo Effect Practice: 3. Systems that support end-to-end processes are called business processes. Answer: False Difficulty: Medium Page Reference: 4 Section: Business Processes Practice: 4. An enterprise system is a set of tasks or activities that produce desired outcomes. Answer: False Difficulty: Easy Page Reference: 2 Section: The Functional Organizational Structure: Enterprise Systems Practice: 5. Without the various steps of the business process, a company can’t successfully bill customers and ship products. Answer: True Difficulty: Medium Page Reference: 4 Section: Business Processes Practice: 6. The lifecycle data management (design) process supports the design and development of products from the initial product idea stage through the discontinuation of the product. Answer: True Difficulty: Medium Page Reference: 5 Section: Business Processes Practice: 7. The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs. Answer: False Difficulty: Medium Page Reference: 5 Section: Business Processes Practice: 8. The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization’s customers. Answer: True Difficulty: Medium Page Reference: 5 Section: Business Processes Practice: 9. The financial accounting process focuses on internal reporting to manage costs and revenues. Answer: False Difficulty: Difficult Page Reference: 6 Section: Business Processes Practice: 10. The procurement process includes all of the tasks involved in acquiring needed materials. Answer: True Difficulty: Medium Page Reference: 6 Section: Business Processes: Procurement-Buy Practice: 11. Within the production process, the issuing of raw materials takes place in the warehouse. Answer: True Difficulty: Difficult Page Reference: 7 Section: Business Processes: Procurement-Make Practice: 12. Materials encompass all the products, components, and parts that are used in an organization. Answer: True Difficulty: Medium Page Reference: 8 Section: Business Processes: Material Planning-Plan Practice: 13. Lead time is the time between placing the order and receiving confirmation that the item has been shipped. Answer: False Difficulty: Easy Page Reference: 8 Section: Business Processes: Material Planning-Plan Practice: 14. The purpose of material planning is to match supply with demand. Answer: True Difficulty: Medium Page Reference: 8 Section: Business Processes: Material Planning-Plan Practice: 15. Insufficient supply results in a situation called “stock out.” Answer: True Difficulty: Medium Page Reference: 8 Section: Business Processes: Material Planning-Plan Practice: 16. Excess supply will result in lower inventory costs because the company is eligible for a bulk rate. Answer: False Difficulty: Difficult Page Reference: 8 Section: Business Processes: Material Planning-Plan Practice: 17. Forecasts of finished goods are determined by data from material planning. Answer: True Difficulty: Medium Page Reference: 9 Section: Business Processes: Material Planning-Plan Practice: