Deck 7: Conversion Processes

Question 1

The primary key of the Production Steps table would be posted in the Production Plan table as a foreign key.

Answer 1

False

Question 2

Conversion labor costs become part of cost of goods sold.

Answer 2

True

Question 3

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?

A. The employee records the completion of a job and updates finished goods.
B. Each production authorization is related to one product.
C. Each product is related to one production authorization.
D. One employee can authorize production multiple times.

Answer 3

Each production authorization is related to one product

Question 4

Application controls limit access to viewing and changing records in a system.

Question 5

Which of the following best describes the purpose of a bill of material class?
A. Links each raw material item to one or more finished good items.
B. Shows the issues of raw material items into work in process.
C. Links finished goods to production.
D. Shows the raw material usage variance.

Question 6

A labor plan class would establish standard overhead allocation rates.

Question 7

The primary key of the Production Authorization table would be posted in the Production Steps table as a foreign key.

Question 8

Which of the following types of business is least likely to employ a conversion process?
A. Restaurant
B. Retail store
C. Bakery
D. Machine shop

Question 9

The primary key of the Employees table would be posted in the Production Steps table as a foreign key.

Question 10

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?

A. The employee records the completion of a job and updates finished goods.
B. Each production authorization results in the increase to the quantity on hand of one product.
C. Employees manage multiple products.
D. One employee can authorize production multiple times.

Question 11

Gateways can direct sequence flow to support looping.

Question 12

Which of the following is not a basic activity in the conversion process?
A. Issue raw material
B. Perform work and account for labor
C. Ship products to stores
D. Authorize production

Question 13

Consider the following BPMN diagram of a subprocess. Which of the following is required to correct an error in the diagram?

A. Change the intermediate event to a start event.
B. Change the intermediate error event to an exclusive gateway
C. Add a sequence flow to an end event after the discard errors activity.
D. Drop the activity named Discard Errors.

Question 14

Business rules describe appropriate actions to take based on process conditions.

Question 15

Which of the following best describes the purpose of an intermediate error event?
A. Directs sequence flow when an activity aborts
B. Delays the sequence until a specified time
C. Waits for external messages
D. Ends a process

Question 16

Which of the following not one of the reasons that the conversion process is typically considered more complicated than the sales and collections and the purchases and payments processes?
E. The conversion process has greater record-keeping requirements.
F. Many companies do not have a conversion process.
G. The sophistication of the conversion process may vary greatly among different companies.
H. All three of the other answers are reasons that the conversion process is more complicated.

Question 17

Which of the following least reflects the purpose of a business rule in the conversion process?
A. Segregating authorizing, issuing, and conversion work duties
B. Limiting who can view and change records in the system
C. Ensuring no production without a customer order
D. Assuring that all products meet quality standards

Question 18

The link between the Production Plan and Materials tables would be implemented as a linking table.

Question 19

The link between the Products and Production Plan tables would be implemented as a linking table.

Question 20

In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association?
A. Shows the participation of employees in the process.
B. Links work in process events to the original production authorization.
C. Indicates issue of raw material into the process.
D. Tracks completion of work in process and increase to finished goods inventory.

Question 21

Review the following BPMN activity diagram. In this conversion process, the quantities of raw materials to be released is calculated based on which information?

A. Work-in-Process.
B. The Bills of Materials.
C. The quantities of raw materials purchased.
D. Economic order quantities.

Question 22

Which of the following is the most likely foreign key for the Bill of Materials table?
A. Prod_auth_ID
B. Product_ID
C. Issue_Sequence
D. Material_description

Question 23

When creating a UML class diagram to support the conversion process, which of the following approaches provides a way to meet both accounting and general management information requirements?
A. The COSO framework.
B. BPMN guidelines.
C. A star schema.
D. The REA framework.

Question 24

Review the following diagram. Which answer provides the best interpretation Bill of Materials class and its associations?

A. A material might not be included in any Bills of Materials.
B. The Bill of Materials determines which product should be produced.
C. Bills of Materials act as a type image class that specifies the details of the implied association between products and materials.
D. A Bill of Materials may be associated with many different products.

Question 25

Using a generic conversion UML class diagram as a starting point, which of the following best describes how to find work-in-process inventory?
A. It is displayed in the UML class diagram as a Resource class.
B. It is calculated based on accumulated materials issued, labor and overhead.
C. It is displayed in the UML class diagram as a Type Image class.
D. It is not displayed in the UML class diagram, but will become a table in the relational database as a result of a many-to-many association in the UML class diagram.

Question 26

Which of the following is the primary overall objective of the conversion process?
A. Issue raw materials efficiently.
B. Ensure that enough finished products are available to meet anticipated demand.
C. Make finished products to order.
D. Transfer finished goods to warehouse inventory accurately.

Question 27

Which of the following business rules illustrates a proper implementation of internal control?
A. The employee that inspects the work can't be the same employee that discards defective items.
B. The employee that performs part of the conversion work can't also perform other work in the conversion process.
C. The employee that authorizes production can't be the same employee that issues raw materials.
D. The person that receives the finished items can't also place them into their assigned warehouse location.

Question 28

Which of the following is the recommended data type for the Product_number field in the conversion database?
A. Integer
B. Memo
C. Text
D. Double

Question 29

Review the conversion process BPMN activity diagram presented below. In the diagram, the symbol indicates which of the following?

A. Gateway.
B. Activity loop.
C. Exception event.
D. Collapsed subprocess.

Question 30

In the conversion process, indirect labor is first recorded to which of the following accounts?
A. Finished Goods.
B. Raw Material Inventory.
C. Work-in-Process Inventory.
D. Manufacturing Overhead.

Question 31

In a BPMN activity diagram, what does the following symbol represent?

A. A looping collapsed subprocess.
B. An exception event.
C. A connection made to another swimlane in the process.
D. An expanded subprocess.

Question 32

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Materials and the Materials Issue classes?

A. A Material Issue must include at least one material, but may include many materials.
B. When a material is issued, it is transferred into the Material Issue class.
C. Each material is included in at least one material issue, but may be included in many material issues.
D. A material issue might not include a material.

Question 33

Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and the Labor Operations classes?

A. Each employee that creates a Material Issue must record at least one Labor Operation.
B. At least one production worker and one supervisor must perform labor operations for each production run.
C. The association between Labor Operations and Employees will be implemented in the database with a Type Image class.
D. An employee may not perform any labor operations.

Question 34

The duality associations between the events in the generic conversion UML class diagram illustrate which of the following?
A. The participation of both supervisors and employees in the conversion process.
B. The looping approach required for conversion processes that include multiple batches.
C. The capture of actual material and labor costs for comparison with the original plan.
D. The need for multiple raw materials to be included in the conversion process.