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Unformatted text preview: Chapter 11, The Conversion Business Process True/False Questions 1. Because the conversion cycle usually involves no resource exchanges with external business partners, it usually falls within the enterprise circle of the value system level diagram. Ans: True 2. The economic increment event Production Run in the conversion cycle component of an REA enterprise value chain diagram usually results in a corresponding resource flow of finished goods from the conversion cycle to the revenue cycle. Ans: True 3. The value chain component representing the conversion cycle of a manufacturer usually includes multiple resource inflows. Ans: True 4. For cost assignment purposes, continuous processes include natural starting and ending points, whereas batch processes require the use of artificial starting and ending points. Ans: False Response: Batch processes include natural starting and ending points, whereas continuous processes require the use of artificial starting and ending points. 5. Because most firms produce very different goods and services, and have many different types of production processes, there is no robust conceptual modeling pattern for the conversion cycle. Ans: False Response: While the labels may differ to reflect underlying workflow differences for the conversion cycles of different enterprises, the same economic increment and decrement effects exist input resources are decremented and output resources are incremented. 6. The Conversion cycle is centered on a Transfer duality relationship. Ans: False Response: The Conversion cycle is centered on a Transformation duality relationship. Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 201 Chapter 11, The Conversion Business Process 7. A business process level model of an enterprise's conversion cycle usually includes multiple economic decrement event entities. Ans: True 8. A Material Issuance is an economic decrement event in the conversion cycle. Ans: True 9. Move tickets often document material issuance events. Ans: True 10. Labor Operations in the Conversion cycle are economic increment events that represent increases of Labor resource types. Ans: False Response: Labor Operations are economic decrements that represent the using up of labor resource types. Labor is increased via Labor Acquisitions in the payroll cycle. 11. Job time tickets or time track forms are often used to document labor operations in the conversion cycle. Ans: True 12. Stockflow Consume relationships represent decreases of resources that get partially used up in economic decrement events. Ans: True 13. The Production Order is the commitment to an economic increment event that will increase the Finished Goods resource....
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This note was uploaded on 01/17/2011 for the course INFO SYSTE ACC 115 taught by Professor Baker during the Spring '10 term at Strayer.
- Spring '10