ACC 444 Chapter 9 Exam Questions With
Complete Answers
Supply Chain Management - ANSWER The art and science that goes into making sure
that the right product or service gets into the right customer's hands in the right
quantity and at the right time
Supply chain - ANSWER Collective companies that help make supplies get to the
customer
Four main activities of a supply chain - ANSWER Plan, source, make, deliver
Cash-to-cash cycle - ANSWER The time between when a party in the supply chain pays
for goods and services and when it gets paid for them.
Purchase-to-pay process - ANSWER AKA Procure-to-pay process. Order goods and
services when needed, receive them in satisfactory condition, and pay only for what is
ordered and received.
Steps in P2P Process - ANSWER Purchase requisition, sourcing, purchase order, goods or
services receipt, supplier invoice and 3 way match, and payment
Purchase requisition - ANSWER Internal document generated by a user or department
, requesting goods or services
Sourcing - ANSWER A strategy in which a company seeks to find the most cost efficient
location for manufacturing a product or purchasing a product or service
Request for quote (RFQ) - ANSWER Business document that solicits price and delivery
quotes for a specific quantity of a type of goods and/or services
Purchase order - ANSWER Binding contract between the buyer and seller setting forth
quantities, prices, discounts, payment terms, date of shipment or performance of a
service, and other associated terms and conditions
Goods/services receipt - ANSWER Accounting step. Depending on the type of receipt,
either an asset or an expense is increased in the general ledger (GL) and a liability
recorded.
Three-way match - ANSWER A configured control in the ERP system that will attempt to
"match" three documents together - the purchase order, goods receipt, supplier invoice
- before either accepting goods or paying a supplier.
Tolerance limits - ANSWER Allow for slight differences between quantities received and
quantities ordered and actual purchase price versus purchase price on the PO
Supplier relationship management (SRM) - ANSWER A company's comprehensive
Complete Answers
Supply Chain Management - ANSWER The art and science that goes into making sure
that the right product or service gets into the right customer's hands in the right
quantity and at the right time
Supply chain - ANSWER Collective companies that help make supplies get to the
customer
Four main activities of a supply chain - ANSWER Plan, source, make, deliver
Cash-to-cash cycle - ANSWER The time between when a party in the supply chain pays
for goods and services and when it gets paid for them.
Purchase-to-pay process - ANSWER AKA Procure-to-pay process. Order goods and
services when needed, receive them in satisfactory condition, and pay only for what is
ordered and received.
Steps in P2P Process - ANSWER Purchase requisition, sourcing, purchase order, goods or
services receipt, supplier invoice and 3 way match, and payment
Purchase requisition - ANSWER Internal document generated by a user or department
, requesting goods or services
Sourcing - ANSWER A strategy in which a company seeks to find the most cost efficient
location for manufacturing a product or purchasing a product or service
Request for quote (RFQ) - ANSWER Business document that solicits price and delivery
quotes for a specific quantity of a type of goods and/or services
Purchase order - ANSWER Binding contract between the buyer and seller setting forth
quantities, prices, discounts, payment terms, date of shipment or performance of a
service, and other associated terms and conditions
Goods/services receipt - ANSWER Accounting step. Depending on the type of receipt,
either an asset or an expense is increased in the general ledger (GL) and a liability
recorded.
Three-way match - ANSWER A configured control in the ERP system that will attempt to
"match" three documents together - the purchase order, goods receipt, supplier invoice
- before either accepting goods or paying a supplier.
Tolerance limits - ANSWER Allow for slight differences between quantities received and
quantities ordered and actual purchase price versus purchase price on the PO
Supplier relationship management (SRM) - ANSWER A company's comprehensive
