INMT 341 EXAM 2 QUESTIONS WITH VERIFIED
ANSWERS
In the P2P process, what 3 functions are crucial? - Answers - Record, Maintain, Report
What event causes 2 information processing events to occur in P2P? - Answers -
Receipt of goods --> record receipt and recognize liability
What is EOQ? - 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? - Answers - Schedules resources to be purchased
more closely to loads. --> reduces inventory and shorter delivery times
Describe JIT processing - Answers - Orders goods as needed, eliminates waste
When is a purchase request open? - Answers - Open: until it's denied or becomes an
order
What is a "blind copy?" - 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 - 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? - Answers - Maintain --
> custodial funciton
Recording a liability is what type of function? - Answers - Recordkeeping
What does a 3-way match compare? - Answers - Vendor Invoice, Purchase order,
Receipts
What is a "ticker" file? - Answers - Any file that is organized according to the future date
on which action is needed
What is Evaluated Receipt Settlement (ERS)? - Answers - Automatic settlement of
receipts
Eliminates vendor invoice, creates ASN
, What is perhaps the most crucial part in the buying decision process? - Answers -
Selecting a vendor
What is considered the "heart of the company's value chain"? - Answers - The OTC
process --> where money comes in and they create value (customer)
How to you discern between an entity, file, info processing steps, relationships/flow of
the diagram? - Answers - Entity: box
File: parallel lines
Info Steps: oval
Flow: lines with arrows
What is a customer order? Sales order? - Answers - Customer order: what the customer
is seeking/requests
Sales Order: what we agree upon to sell to customer and they accept
What two questions do we ask when processing a Sales Order? - Answers - 1 - can the
customer fulfill their side of bargain? (pay)
2 - can we fulfill our side? (supply goods/services)
Describe the two types of credit authorization - Answers - General: used for customers
who are below a certain credit limit and have a good rating
Specific: often applies when balances are overdue, new customers, extended credit
limits
When is a sales order considered open? - Answers - Until it has not been fulfilled and
billed
The sales order process is known as what type of process? - Answers - Authorization
process
Order fulfillment is what type of funciton? - Answers - Custodial
What are stock outs? - Answers - When demand for an item cannot be fulfilled from the
current inventory on hand; can fulfill with next order.
T/F you must periodically physically count inventory to reconcile with what the
management system portrays - Answers - TRUE!!!
What is a packing slip? Picking slip? - Answers - Packing: what is actually packed and
shipped to the customer
Picking: what is picked from inventory/warehouse
ANSWERS
In the P2P process, what 3 functions are crucial? - Answers - Record, Maintain, Report
What event causes 2 information processing events to occur in P2P? - Answers -
Receipt of goods --> record receipt and recognize liability
What is EOQ? - 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? - Answers - Schedules resources to be purchased
more closely to loads. --> reduces inventory and shorter delivery times
Describe JIT processing - Answers - Orders goods as needed, eliminates waste
When is a purchase request open? - Answers - Open: until it's denied or becomes an
order
What is a "blind copy?" - 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 - 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? - Answers - Maintain --
> custodial funciton
Recording a liability is what type of function? - Answers - Recordkeeping
What does a 3-way match compare? - Answers - Vendor Invoice, Purchase order,
Receipts
What is a "ticker" file? - Answers - Any file that is organized according to the future date
on which action is needed
What is Evaluated Receipt Settlement (ERS)? - Answers - Automatic settlement of
receipts
Eliminates vendor invoice, creates ASN
, What is perhaps the most crucial part in the buying decision process? - Answers -
Selecting a vendor
What is considered the "heart of the company's value chain"? - Answers - The OTC
process --> where money comes in and they create value (customer)
How to you discern between an entity, file, info processing steps, relationships/flow of
the diagram? - Answers - Entity: box
File: parallel lines
Info Steps: oval
Flow: lines with arrows
What is a customer order? Sales order? - Answers - Customer order: what the customer
is seeking/requests
Sales Order: what we agree upon to sell to customer and they accept
What two questions do we ask when processing a Sales Order? - Answers - 1 - can the
customer fulfill their side of bargain? (pay)
2 - can we fulfill our side? (supply goods/services)
Describe the two types of credit authorization - Answers - General: used for customers
who are below a certain credit limit and have a good rating
Specific: often applies when balances are overdue, new customers, extended credit
limits
When is a sales order considered open? - Answers - Until it has not been fulfilled and
billed
The sales order process is known as what type of process? - Answers - Authorization
process
Order fulfillment is what type of funciton? - Answers - Custodial
What are stock outs? - Answers - When demand for an item cannot be fulfilled from the
current inventory on hand; can fulfill with next order.
T/F you must periodically physically count inventory to reconcile with what the
management system portrays - Answers - TRUE!!!
What is a packing slip? Picking slip? - Answers - Packing: what is actually packed and
shipped to the customer
Picking: what is picked from inventory/warehouse
