Question 1

Which of the following is a core business process?
A) time-to-purchase
B) make-to-stock
C) plan-to-produce
D) account-to-report
E) hire-to-retire

Accepted Answer

Make-to-stock is a core business process as it involves manufacturing products for inventory based on demand forecasts, which is fundamental to production and supply chain management.

Question 2

Buying a book at Amazon.com illustrates which of the following core business processes?
A) time-to-purchase
B) order-to-cash
C) plan-to-produce
D) account-to-report
E) hire-to-retire

Accepted Answer

Buying a book at Amazon.com represents the order-to-cash process, which includes taking orders from customers, fulfilling them, and getting paid for the transaction.

Question 3

In the ________ process,raw materials,subcomponents,and accessories are procured based on forecasts,but actual manufacturing does not start until sales orders are received.
A) order-to-cash
B) procure-to-pay
C) make-to-stock
D) acquire-to-dispose
E) make-to-order

Accepted Answer

The process described is "make-to-order" in which procurement of raw materials and components is based on forecasts, but manufacturing does not begin until a customer order is received.

Question 4

Receiving the goods is followed by ________ in the procure-to-pay process.
A) settling the payment
B) negotiating the price and terms
C) issuing the purchase order
D) creating the order
E) receiving the invoice

Accepted Answer

Receiving the invoice comes after receiving the goods in the procure-to-pay process. This step is crucial for verifying that the goods received match the order before proceeding with payment.

Question 5

In the order-to-cash process,checking credit is followed by ________.
A) collecting payment
B) creating an order
C) allocating stock
D) picking, packing, and shipping
E) preparing and sending the invoice

Accepted Answer

Once credit has been checked and approved, the next step in the order-to-cash process is to create an order for the customer.

Question 6

Traditionally,companies are organized around five distinct functional areas.Which of the following is one of them?
A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management

Accepted Answer

Supply chain management is one of the five traditional functional areas along with finance, marketing, operations, and human resources. It involves managing the flow of goods and services from the point of origin to the point of consumption, ensuring efficiency and cost-effectiveness in the production and delivery process. Risk management, technology management, communication management, and systems management are not typically considered traditional functional areas of a business.

Question 7

An effective ________ process can help to obtain favorable conditions,reduce transaction costs,and,ultimately,create customer goodwill as it helps to efficiently fulfill customer orders.
A) procure-to-pay
B) procure-to-buy
C) find-to-buy
D) procure-to-sell
E) find-to-sell

Accepted Answer

Procure-to-pay refers to the process of purchasing goods or services and making payments to the supplier. It involves activities such as identifying the need for the goods or services, selecting the supplier, negotiating the terms, creating a purchase order, receiving the goods, and making the payment. An effective procure-to-pay process can help to obtain favorable conditions, reduce transaction costs, and create customer goodwill as it helps to efficiently fulfill customer orders.

Question 8

The organization waits for an order,allowing the organization to initiate a ________ sequence to move the order through the production process.
A) pushing
B) rotating
C) working
D) pulling
E) propelling

Accepted Answer

The given sentence suggests that the organization is waiting for an order before initiating the production process. This indicates that the production process is triggered by the order placed which is the concept of the pull system. Hence, the correct choice is D) pulling.

Option A) pushing refers to a system where production is initiated based on sales forecasts and projections, and not on the actual customer orders. 
Option B) rotating, option C) working, and option E) propelling do not relate to any production concept.

Question 9

________ immediately after the purchase order is issued in the procure-to-pay process.
A) Payment is settled
B) Price and terms are negotiated
C) Credit is checked
D) Goods are received
E) Invoices are received

Accepted Answer

The correct step that occurs immediately after the purchase order is issued in the procure-to-pay process is that goods are received. The purchase order is a formal request for goods or services by the buyer, and upon receiving it, the supplier or vendor would then send the goods or perform the services requested. Once the goods are received, the buyer can verify that they match the order and the invoice, and then move on to the next steps in the process, such as invoice processing and payment settlement. Therefore, option D is the best choice for this question.

Question 10

Which of the following is the first step in the procure-to-pay process?
A) negotiate price and terms
B) issue purchase order
C) receive goods
D) receive invoice
E) settle payment

Accepted Answer

The first step in the procure-to-pay process is to negotiate price and terms with the supplier before any purchase orders are issued.

Question 11

In core business processes,which of the following uses a push-based approach?
A) order-to-cash
B) procure-to-pay
C) production-to-order
D) make-to-stock
E) make-to-order

Accepted Answer

Make-to-stock is a push-based approach where products are produced based on forecasts and pushed into the market. The other options listed use pull-based approaches where products are produced on demand or in response to customer orders.

Question 12

An online retailer has finished creating a customer record.Identify the retailer's next step in an order-to-cash process.
A) create order
B) allocate stock
C) pick, pack, and ship
D) prepare and send invoice
E) check customer's creditworthiness

Accepted Answer

Before proceeding with any order, it is important for the retailer to check the customer's creditworthiness to ensure timely payments and minimize the risk of non-payment. This step should be taken before creating an order or allocating stock.

Question 13

The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.
A) make-to-stock
B) make-to-order
C) order-to-cash
D) plan-to-produce
E) procure-to-pay

Accepted Answer

The term "procure-to-pay" refers to the process of purchasing goods from external vendors, which includes tasks such as selecting vendors, negotiating contracts, placing orders, receiving goods, and making payments. Therefore, option E is the best choice. The other options (A, B, C, and D) are associated with different processes, such as production planning and order fulfillment.

Question 14

In the procure-to-pay process,the negotiation of price and terms is followed by ________.
A) settling the payment
B) creating the customer record
C) issuing the purchase order
D) receiving the goods
E) receiving the invoice

Accepted Answer

Once the price and terms have been negotiated, the next step in the procure-to-pay process is to issue a purchase order. This formal document outlines the details of the purchase, including the agreed-upon price and any other terms of the agreement. The purchase order typically initiates the process of acquiring the goods or services, which may include additional steps such as receiving the goods and paying the supplier. However, the purchase order is the next step immediately after the negotiation of price and terms.

Question 15

For most businesses,the ________ process entails several subprocesses including creating a customer record,checking the customer's creditworthiness,creating an order,checking and allocating stock,and shipping.
A) order-to-cash
B) make-to-order
C) procure-to-pay
D) make-to-stock
E) plan-to-produce

Accepted Answer

The process described in the question, which includes creating a customer record, checking credit, creating an order, checking inventory, and shipping, is the order-to-cash process. The other options listed (make-to-order, procure-to-pay, make-to-stock, and plan-to-produce) all refer to different processes unrelated to the activities mentioned in the question.

Question 16

In the ________ process,goods are produced based on forecasts and are stored in a warehouse,and sales orders are then fulfilled from inventory.
A) configure-to-stock
B) make-to-stock
C) make-to-order
D) engineer-to-order
E) assemble-to-order

Accepted Answer

The make-to-stock process involves producing goods based on forecasts and then storing them in a warehouse to fulfill sales orders. This process is commonly used for products with stable demand where the cost of holding inventory is lower than the cost of setting up production for every order.

Question 17

An effective ________ process can create customer satisfaction,speed up the collection process,and serve to provide valuable inputs into business intelligence and customer relationship management applications.
A) order-to-cash
B) make-to-order
C) procure-to-pay
D) make-to-stock
E) plan-to-produce

Accepted Answer

The order-to-cash process refers to the entire process from the customer placing an order to receiving payment. This process can impact customer satisfaction by ensuring timely and accurate delivery, and can also streamline the collection process. Additionally, data collected during the order-to-cash process can be used in business intelligence and customer relationship management applications to inform future decisions and improve customer experience.

Question 18

In an order-to-cash process,identify the next step that the online retailer takes after creating an order for a customer.
A) collect payment
B) create customer record
C) check and allocate stock
D) pick, pack, and ship
E) prepare and send invoice

Accepted Answer

The next step that the online retailer takes after creating an order for a customer is to check and allocate stock. This ensures that the items ordered are available and can be shipped to the customer. Once the stock is allocated, the retailer can proceed with picking, packing, and shipping the order. Collecting payment, creating customer record, and preparing and sending invoice may come after this step.

Question 19

Subprocesses of the procure-to-pay process include ________.
A) collecting the payment
B) creating customer records
C) price and terms negotiations
D) creating customer satisfaction
E) speeding up the collection process

Accepted Answer

The procure-to-pay process includes activities such as identifying the need for goods or services, selecting a vendor, negotiating prices and terms, creating a purchase order, receiving the goods or services, approving an invoice, and making payment. Therefore, price and terms negotiations are one of the subprocesses of this process. Collecting the payment and speeding up the collection process are part of the accounts receivable process, while creating customer records and satisfaction are part of the customer relationship management process.

Question 20

Whenever an order is placed with online retailers,the retailers put together the order,ship it,and charge the payment to the customer's credit card.This process of selling a product or service is known as the ________ process.
A) make-to-order
B) time-to-market
C) order-to-cash
D) procure-to-pay
E) make-to-stock

Accepted Answer

The process described in the question is where an order is received and fulfilled, payment is charged to the customer's credit card, and the retailer generates revenue from the sale. This process is known as the order-to-cash process. The other options listed are not a fit for the description provided.

Quiz 7: Enhancing Business Processes Using Enterprise Information Systems

Which of the following is a core business process?

Buying a book at Amazon.com illustrates which of the following core business processes?

In the ________ process,raw materials,subcomponents,and accessories are procured based on forecasts,but actual manufacturing does not start until sales orders are received.

Receiving the goods is followed by ________ in the procure-to-pay process.

In the order-to-cash process,checking credit is followed by ________.

Traditionally,companies are organized around five distinct functional areas.Which of the following is one of them?

An effective ________ process can help to obtain favorable conditions,reduce transaction costs,and,ultimately,create customer goodwill as it helps to efficiently fulfill customer orders.

The organization waits for an order,allowing the organization to initiate a ________ sequence to move the order through the production process.

________ immediately after the purchase order is issued in the procure-to-pay process.

Which of the following is the first step in the procure-to-pay process?

In core business processes,which of the following uses a push-based approach?

An online retailer has finished creating a customer record.Identify the retailer's next step in an order-to-cash process.

The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.

In the procure-to-pay process,the negotiation of price and terms is followed by ________.

For most businesses,the ________ process entails several subprocesses including creating a customer record,checking the customer's creditworthiness,creating an order,checking and allocating stock,and shipping.

In the ________ process,goods are produced based on forecasts and are stored in a warehouse,and sales orders are then fulfilled from inventory.

An effective ________ process can create customer satisfaction,speed up the collection process,and serve to provide valuable inputs into business intelligence and customer relationship management applications.

In an order-to-cash process,identify the next step that the online retailer takes after creating an order for a customer.

Subprocesses of the procure-to-pay process include ________.

Whenever an order is placed with online retailers,the retailers put together the order,ship it,and charge the payment to the customer's credit card.This process of selling a product or service is known as the ________ process.