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Unformatted text preview: Chapter 8, The Sales/Collection Business Process True/False Questions 1. At the value system level, the revenue cycle encompasses the flow of goods and services from the enterprise to the customers and the flow of cash from the customers to the enterprise. Ans: True 2. In the value chain for a manufacturer, the revenue cycle's most likely resource inflow would be labeled as services. Ans: False Response: Its most likely resource inflow would be labeled as Finished Goods or Finished Goods Inventory 3. Although labor operations exist in nearly every enterprise's revenue process, most enterprises do not explicitly track and match them to the revenue-generating activity. Ans: True 4. A REA value chain level diagram for an enterprise that has determined a benefit in excess of the cost of tracking labor operations in its revenue cycle should include a labor resource flow from the payroll process to the revenue process and should also include a labor operation event in the revenue process. Ans: True 5. In the sales/collection business process level of the REA enterprise ontology, marketing efforts are commitment events. Ans: False Response: Marketing efforts are considered to be internally generated instigation events. 6. In the sales/collection business process, there typically is no need to specifically identify a good or service for purposes of instigation events; instead, all that is needed is information about the type of good or service involved. Ans: True 7. In the sales/collection business process, attributes of instigation events that should be captured typically include the date, time, location, and duration of the event. Ans: True Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 127 Chapter 8, The Sales/Collection Business Process 8. In the sales/collection business process, the most common mutual commitment events are customer orders, rental agreements, and service agreements. Ans: True 9. A sale order is an example of an economic decrement event that occurs in the sales/collection process. Ans: False Response: A sale order is a mutual commitment event; no resources have yet been increased or decreased. 10. If an enterprise sells services, rather than goods, the sales/collecxtion process will not include an economic decrement event. Ans: False Response: The economic decrement for such firms is typically called service engagement and it represents the using up of the employee services. 11. A sales call report document typically contains most or all attributes that are represented by the sales call event entity, the inventory or service type entity, and the proposition relationship....
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- Spring '10
- Sales, invoice