D217 Chapter 1 Comprehensive Exam
Questions Already Solved.
Accounting Information Systems (AIS) - Answer Specialized subset of information systems that
processes financial transactions.
information flows - Answer Flow of information into and out of an organization.
Information flows in to... - Answer ...decision makers and other users to meet a variety of internal
needs.
Information flows out from the organization to... - Answer ...external users, such as customers,
suppliers, and stakeholders, who have an interest in the firm.
Business operations form the base of the pyramid. What are these activities? - Answer These activities
consist of the product-oriented work of the organization, such as manufacturing, sales, distribution,
billing, and cash receipts.
Operations Management (second level) is directly responsible for what? - Answer Operations
management is directly responsible for controlling day-to-day operations.
Middle Management (third level) is accountable for what? - Answer Middle management is
accountable for the short-term planning and coordination of activities necessary to accomplish
organizational objectives.
Top Management (top level) is responsible for what? - Answer Top management is responsible for
longer-term planning and setting organizational objectives.
The horizontal flow (base level) supports what? - Answer The horizontal flow supports operations-level
tasks with highly detailed information about the many business transactions affecting the firm.
,Including: information about events such as the sale and shipment of goods, the use of labor and
materials in the production process, and internal transfers of resources from one department to another.
How does the vertical flow distribute information? - Answer · The vertical flow distributes information
downward from senior managers to junior managers and operations personnel in the form of
instructions, quotas, and budgets.
Summarized information pertaining to operations and other activities flows upward to managers at all
levels.Management uses this information to support its various planning and control functions.
Trading Partners - Answer Category of external users, including customer sales and billing information,
purchase information for suppliers, and inventory receipts information.
Exchanges include:
customer sales and billing information, purchase information for suppliers, and inventory receipts
information.
Stakeholders - Answer Entities either inside or outside an organization that have a direct or indirect
interest in the firm.
Examples include stockholders, financial institutions, and government agencies.
Information exchanges include financial statements, tax returns, and stock transaction information
Segments - Answer A functional unit of a business organization.
Materials Management Function
(functional segment of business organization) - Answer The objective of materials management is to
plan and control the materials inventory of the company.
Sub-functions:
1. Purchasing
2. Receiving
, Stores
Purchasing
(sub-function of Materials Management) - Answer Purchasing is responsible for ordering inventory
from vendors when inventory levels fall to their reorder points. Can involve everything from sending a
purchase order to a designated vendor to soliciting bids from competing vendors. The nature of the
business and the type of inventory determine the extent of the purchasing function.
Receiving
(sub-function of Materials Management) - Answer Receiving is the task of accepting the inventory
previously ordered by purchasing. Receiving activities include counting and checking the physical
condition of these items. This is an organization's first, and perhaps only, opportunity to detect
incomplete deliveries and damaged merchandise before they move into the production process.
Stores
(sub-function of Materials Management) - Answer Stores takes physical custody of the inventory
received and releases these resources into the production process as needed.
Production Function
(functional segment of business organization) - Answer Production activities occur in the conversion
cycle in which raw materials, labor, and plant assets are used to create finished products. The specific
activities are determined by the nature of the products being manufactured.
Two broad classes: (1) Primary manufacturing activities
(2) Production support activities
Primary Manufacturing Activities
(sub-function of Production) - Answer Primary manufacturing activities shape and assemble raw
materials into finished products.
Production Support Activities
(sub-function of Production) - Answer Production support activities ensure that primary manufacturing
activities operate efficiently and effectively.
Questions Already Solved.
Accounting Information Systems (AIS) - Answer Specialized subset of information systems that
processes financial transactions.
information flows - Answer Flow of information into and out of an organization.
Information flows in to... - Answer ...decision makers and other users to meet a variety of internal
needs.
Information flows out from the organization to... - Answer ...external users, such as customers,
suppliers, and stakeholders, who have an interest in the firm.
Business operations form the base of the pyramid. What are these activities? - Answer These activities
consist of the product-oriented work of the organization, such as manufacturing, sales, distribution,
billing, and cash receipts.
Operations Management (second level) is directly responsible for what? - Answer Operations
management is directly responsible for controlling day-to-day operations.
Middle Management (third level) is accountable for what? - Answer Middle management is
accountable for the short-term planning and coordination of activities necessary to accomplish
organizational objectives.
Top Management (top level) is responsible for what? - Answer Top management is responsible for
longer-term planning and setting organizational objectives.
The horizontal flow (base level) supports what? - Answer The horizontal flow supports operations-level
tasks with highly detailed information about the many business transactions affecting the firm.
,Including: information about events such as the sale and shipment of goods, the use of labor and
materials in the production process, and internal transfers of resources from one department to another.
How does the vertical flow distribute information? - Answer · The vertical flow distributes information
downward from senior managers to junior managers and operations personnel in the form of
instructions, quotas, and budgets.
Summarized information pertaining to operations and other activities flows upward to managers at all
levels.Management uses this information to support its various planning and control functions.
Trading Partners - Answer Category of external users, including customer sales and billing information,
purchase information for suppliers, and inventory receipts information.
Exchanges include:
customer sales and billing information, purchase information for suppliers, and inventory receipts
information.
Stakeholders - Answer Entities either inside or outside an organization that have a direct or indirect
interest in the firm.
Examples include stockholders, financial institutions, and government agencies.
Information exchanges include financial statements, tax returns, and stock transaction information
Segments - Answer A functional unit of a business organization.
Materials Management Function
(functional segment of business organization) - Answer The objective of materials management is to
plan and control the materials inventory of the company.
Sub-functions:
1. Purchasing
2. Receiving
, Stores
Purchasing
(sub-function of Materials Management) - Answer Purchasing is responsible for ordering inventory
from vendors when inventory levels fall to their reorder points. Can involve everything from sending a
purchase order to a designated vendor to soliciting bids from competing vendors. The nature of the
business and the type of inventory determine the extent of the purchasing function.
Receiving
(sub-function of Materials Management) - Answer Receiving is the task of accepting the inventory
previously ordered by purchasing. Receiving activities include counting and checking the physical
condition of these items. This is an organization's first, and perhaps only, opportunity to detect
incomplete deliveries and damaged merchandise before they move into the production process.
Stores
(sub-function of Materials Management) - Answer Stores takes physical custody of the inventory
received and releases these resources into the production process as needed.
Production Function
(functional segment of business organization) - Answer Production activities occur in the conversion
cycle in which raw materials, labor, and plant assets are used to create finished products. The specific
activities are determined by the nature of the products being manufactured.
Two broad classes: (1) Primary manufacturing activities
(2) Production support activities
Primary Manufacturing Activities
(sub-function of Production) - Answer Primary manufacturing activities shape and assemble raw
materials into finished products.
Production Support Activities
(sub-function of Production) - Answer Production support activities ensure that primary manufacturing
activities operate efficiently and effectively.
