211
212
Chapter 10
ANS: F
11. A CRM system is designed to manage all the data related to customers, such as marketing, field service, and contact management data.
ANS: T
12. Sell-side systems use the Internet to automate and manage corporate vendors and purchases.
ANS: F
13. Buy-side systems are designed to allow a company to market sell deliver and service goods and services to customers throughout the world via the
Internet.
ANS: F
14. XML is a generalized system for the customized tagging of data to enable the definition, transmission, and interpretation of data exchanged by
systems over the Internet.
ANS: T
15. The buzzword in CRM which means the grouping of customers into categories based on key characteristics is itemization.
ANS: F
16. In the OE/S process context diagram, the one input that creates the seven outputs of inventory sales update, shippings billing notification, sales order
notification, bill of lading, packing slip, payroll data for commissions, and customer acknowledgement is the customer order.
ANS: T
17. When a source document provides authority for a business activity to occur, the source document is said to trigger the activity.
ANS: T
18. If a check of the customer master data shows that the goods requested on a customer order are not in stock, an exception routine called a back order is
initiated.
ANS: F
19. A packing slip authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.
ANS: F
20. A picking ticket is affixed to the inventory package sent to the customer and identifies the customer and the contents of the package.
ANS: F
21. Vendor acknowledgements are sent to vendors to notify them that their orders have been accepted and to inform them of the expected delivery date.
213
ANS: F
22. A bill of lading is the document representing the contract between the shipping company and the common carrier.
ANS: T
23. In the OE/S process level 0 diagram, the sales order notification is sent to billing/AR/CR from the bubble for validate sales order.
ANS: T
24. If a customer refuses to accept a back order, then the sales order is terminated as shown by the accept data flow.
ANS: F
25. A customer acknowledgement is sent to the customer to notify him or her of the orders acceptance and the expected shipping date.
ANS: T
26. A customer acknowledgement is sent to the billing department to notify them of a pending shipment.
ANS: F
27. In the E-R diagram for OE/S, SALES_ORDERS activates the STOCK_PICK.
ANS: T
28. In the E-R diagram for OE/S, STOCK_PICK triggers the SALES_INVOICES.
ANS: F
29. In the E-R diagram for OE/S, SHIPMENTS generate the SALES_INVOICES.
ANS: T
30. The marketing data is a repository of a variety of sales-oriented data, some of which results from recording sales events and some of which does not
produce event data, such as a customer inquiry.
ANS: T
31. The inventory master data normally contains standing data about each customer, such as name, billing and ship-to addresses, and telephone number.
ANS: F
32. The customer master data is a data store that contains data identifying the particular characteristics of each customer.
ANS: T
33. The completed picking ticket file provides an audit trail of authorized inventory transfers made between the warehouse and the shipping department.
214
Chapter 10
ANS: T
34. Records in the sales order master data are created upon the completion of a sales order and are closed out once the order has been shipped.
ANS: T
35. OCR devices that use light reflection to read differences in code patterns in order to identify a labeled item.
ANS: F
36. Bar code readers are used to recognize patterns of handwritten or printed characters.
ANS: F
37. Output devices that capture printed images or documents and convert them into electronic digital signals that can be stored in computer media are
called scanners.
ANS: F
38. When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the customer number.
ANS: T
39. A tickler file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that file.
ANS: T
40. Preformatted screens in the order entry/sales process is a control plan that involves the detailed comparison of the individual elements appearing on
two source documents.
ANS: F
41. One-for-one checking in the order entry/sales process is a control plan that simplifies the data entry process, and may prevent the customer service
representative from omitting data, to fill in certain fields, and reject incorrectly formatted fields to reduce input errors.
ANS: F
42. Online prompting in the order entry/sales process is a control plan that advises the customer service representative to check their data entries before
moving on.
ANS: T
43. Interactive feedback checks in the order entry/sales process is a control plan that tells the customer service representative that the order and shipments
have been accepted.
ANS: T
215
MULTIPLE CHOICE
1. The order entry/sales (OE/S) process is part of the __________ cycle.
a. revenue
b. expenditure
c. conversion
d. general ledger/financial reporting
ANS: A
2. The order entry/sales (OE/S) process handles the processing and shipment of a customer order while another process actually bills the customer. With
such a configuration, you would not expect the OE/S system to interface directly with the __________.
a. billing/accounts receivable/cash receipts process
b. inventory process
c. general ledger process
d. human resource process
ANS: D
3. The OE/S process includes the first four steps in the order to sales process. The order of these four steps is
a. pre-sales activities, sales order processing, picking and packing, shipping
b. pre-sales activities, picking and packing, sales order processing, shipping
c. pre-sales activities, picking and packing , shipping, sales order processing
d. none of the above
ANS: A
4. The primary function of the order entry/sales (OE/S) process includes:
a. identifying decisions made by marketing personnel
b. highlighting the key organizational features of the marketing function
c. producing financial statements
d. meeting the decision needs of those who manage various sales and marketing
functions
216
Chapter 10
ANS: D
5. In addition to the warehousing function, the three primary departments that you would expect to be part of a typical order entry/sales (OE/S) process
are:
a. sales order, shipping, and credit
b. sales order, shipping, and accounts receivable
c. sales order, credit, and accounts receivable
d. credit, shipping, and accounts receivable
ANS: A
6. The ultimate goal of the OE/S process is
a. to ensure accuracy of order entry and sales events
b. to ensure increasing sales volume through the OE/S process
c. to provide value to the customer
d. none of the above
ANS: C
7. From the standpoint of good internal control, which of the following managers should not report (either directly or through an intermediate
supervisor) to the vice president of marketing?
a. manager--new product development
b. manager--customer sales and service
c. manager--credit department
d. manager--sales order department
ANS: C
8. When the sales order department acknowledges a customer order, it is an example of a:
a. vertical information flow
b. horizontal information flow
c. both vertical and horizontal information flow
d. neither vertical nor horizontal information flow
ANS: B
9. When the sales-related data are captured in the sales order department and then the information flows to the managers housed in the marketing
department, it is an example of a:
a. vertical information flow
b. horizontal information flow
c. both vertical and horizontal information flow
217
218
Chapter 10
their approval.
b. Once the shipping department releases the shipment, the information would be
entered into the ERP system at the shipping location to record the order as shipped.
c. An ERP system requires the business to change the information flows of the business
process.
d. The sales order departments response to the customer would be automatically
triggered by the ERP system.
ANS: C
15. Which of the following statements identifies a recent trend in today's business environment?
a. Establishing an E-Business web site provides the business with a competitive
advantage.
b. The most important asset of a business today is its IT infrastructure.
c. IT managers must increase their annual expenditures for hardware, software, and
telecommunication technology.
d. The quality of customer service influences the ability of a business to compete in a
global marketplace.
ANS: D
16. Which is an example of vertical reporting by the order entry/sales (OE/S) process?
a. The credit manager notifies sales order processing that a customer's credit has been
approved.
b. Sales by geographical region are reported to the manager of customer sales and
service.
c. The shipping department notifies sales order processing of all shipments made for
a particular period of time.
d. The sales order department acknowledges a customer order.
ANS: B
17. ______________ applications in organizations are usually viewed as being focused on either operational or analytical applications.
a. data mining
b. data warehousing
c. data entry
d. market segmentation
ANS: B
220
Chapter 10
d. web services
ANS: B
23. In the context diagram for an order entry/sales (OE/S) process the OE/S process has 6 outputs which include all of the following except
a. the billing/accounts receivable/cash receipts process
b. the carrier
c. the general ledger process
d. the marketing process
ANS: D
24. A data flow or event that causes a process to begin is called a:
a. tickler
b. trigger
c. document
d. validity check
ANS: B
25. A process for out-of-the-ordinary or erroneous events is called:
a. exception routine
b. summary report
c. corrective routine
d. normal routine
ANS: A
26. An example of a "rejection procedure" is a(n):
a. back order process
b. inventory subroutine
c. customer acknowledgment process
d. sales order processing process
ANS: A
222
Chapter 10
31. According to the logical flow diagrams of the OE/S system, which of the following data stores provides data to the system but is not updated by it?
a. shipping notice data
b. sales order master data
c. marketing data
d. customer master data
ANS: D
32. For a typical order entry/sales (OE/S) process to check a customer's credit, all of the following data stores likely would be consulted except the:
a. inventory master data
b. customer master data
c. accounts receivable master data
d. sales order master data
ANS: A
33. A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a:
a. shipping order
b. packing slip
c. picking ticket
d. blind authorization
ANS: C
34. In an order entry/sales (OE/S) process, you could expect that a sales order notification would be sent to
a. the billing/accounts receivable/cash receipts process
b. the customer
c. the general ledger process
d. the warehouse
ANS: A
35. At the time that the shipping notice is prepared and disseminated, two data stores within the order entry/sales (OE/S) process normally are updated.
Those two data stores are the:
a. customer and accounts receivable master data
b. accounts receivable and sales order master data
c. accounts receivable master and shipping notice data
223
224
Chapter 10
ANS: C
40. In an entity-relationship (E-R) diagram for the order entry/sales (OE/S) process, you would expect that the word trigger would appear in the diamond
showing the relationship between which of the following pairs of entities?
a. CUSTOMER and SALES ORDER
b. CUSTOMER and SHIPMENT
c. STOCK PICK and SHIPMENT
d. SALES INVOICE and SHIPMENT
ANS: C
41. Which of the following attributes would not be contained in the related relational table?
a. customer_street attribute in the Customers relation
b. quantity_on_hand in the Inventory relation
c. shipping_company in the Sales Order relation
d. invoice_total in the Sales Order relation
ANS: D
42. In a database containing (among others) four relations--CUSTOMERS, SALES ORDERS, SALES_ORDER Line item INVENTORY, and
SHIPMENTS--you would expect that a combination of the SO_No and Item_No attributes would be the primary key for the __________ relation.
a. CUSTOMERS
b. SALES ORDERS
c. SALES_ORDER Line item INVENTORY
d. SHIPMENTS
ANS: C
43. Which of the following goals is not an example of a process goal of the typical order entry/sales (OE/S) process?
a. to provide timely responses to customer inquiries
b. to provide timely acknowledgments of customer orders
c. to provide timely updates to general ledger accounts
d. to provide timely shipments of goods to customers
ANS: C
225
226
Chapter 10
ANS: C
49. In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the:
a. bill of lading
b. sales order
c. customer acknowledgment
d. none of the above
ANS: B
50. In the control matrix of the OE/S process, regarding shipping notice inputs, which of the following control goals is ensured by the control plan
compare input data with master data?
a. input completeness and input accuracy
b. input completeness and input validity
c. input validity and input accuracy
d. none of the above
ANS: C
COMPLETION
1. The order entry/sales (OE/S) process includes the first four steps in the ________________ process.
ANS: order-cash
2. The first step in the order-cash process is ______________.
ANS: pre-sales activities
3. _______________ expect convenient and timely access to information about their order from order initiation to product delivery.
ANS: Customers
4. The OE/S process helps support the decision needs of the _____________ department.
ANS: marketing
5. One of the primary functions of the ____________________ is to create information flows which support the repetitive work routines of the sales
order, shipping, and credit departments.
227
228
Chapter 10
16. In the OE/S process context diagram, the one input that creates the six outputs of inventory sales update, sales order notification, bill of lading,
packing slip, payroll data for commissions, and customer acknowledgement is the ______________.
ANS: customer order
17. When a source document provides authority for a business activity to occur, the source document is said to ____________ the activity.
ANS: trigger
18. If a check of the inventory master data shows that the goods requested on a customer order are not in stock, an exception routine called a(n)
____________________ process is initiated.
ANS: back order
19. A(n) ____________________ authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.
ANS: picking ticket
20. A(n) ____________________ is affixed to the inventory package sent to the customer and identifies the customer and the contents of the package.
ANS: packing slip
21. ____________________ are sent to customers to notify them that their orders have been accepted and to inform them of the expected shipping date.
ANS: Customer acknowledgments
22. A(n) ____________________ is the document representing the contract between the shipping company and the common carrier.
ANS: bill of lading
23. In the OE/S process level 0 diagram, the ____________ notification is sent to billing/AR/CR from the bubble for validate sales order.
ANS: sales order
24. If a customer refuses to accept a back order, then the sales order is terminated as shown by the __________ data flow.
ANS: reject
25. In the ER diagram for OE/S, SALES_ORDERS activates the __________________.
ANS: STOCK_PICK
26. In the ER diagram for OE/S, STOCK_PICK triggers the __________________.
ANS: SHIPMENTS
27. In the ER diagram for OE/S, SHIPMENTS generate the __________________.
229
ANS: SALES_INVOICES
28. The ____________________ data is a repository of a variety of sales-oriented data, some of which results from sales order events, and some of
which does not produce event data, such as a customer inquiry.
ANS: marketing
29. The ____________________ data normally contains standing data about each customer, such as name, billing and ship-to addresses, and telephone
number.
ANS: customer master
30. The ____________________ file provides an audit trail of authorized inventory transfers made between the warehouse and the shipping department.
ANS: completed picking ticket
31. Records in the ____________________ master data are created upon the completion of a sales order and are closed out once the order has been
shipped.
ANS: sales order
32. _________________ are devices that use light reflection to read differences in code patterns in order to identify a labeled item.
ANS: Bar code readers
33. _________________ is used to recognize patterns of handwritten or printed characters.
ANS: Optical character recognition
34. Input devices that capture printed images or documents and convert them into electronic digital signals that can be stored in computer media are
called ____________.
ANS: scanners
35. When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the ________________.
ANS:
customer number
alternatively the answer could be customer name
36. A(n) ____________________ file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that
file.
230
Chapter 10
ANS: tickler
37. ____________________ is a control plan that involves the detailed comparison of the individual elements appearing on two source documents.
ANS: One-for-one checking
38. ____________________ is a control plan that simplifies the data entry process, and may prevent the customer service representative from omitting
data, to fill in certain fields, and reject incorrectly formatted fields to reduce input errors.
ANS: Preformatted screens
39. ____________________ is a control plan that advises the customer service representative to check their data entries before moving on.
ANS: Online prompting
40. ____________________ is a control plan that tells the customer service representative that the order and shipments have been accepted.
ANS: Interactive feedback checks
41. ____________________ is a control plan that ensures that the organization protects its resources by dealing only with customers who have
demonstrated an ability to satisfy their liabilities.
ANS: Customer credit check