Test Bank Ch12 - CH 12 MULTIPLE CHOICE 1. The AIS compiles...

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CH 12 MULTIPLE CHOICE 1. The AIS compiles and feeds information among the business cycles. What is the relationship between the revenue and production cycles regarding the exchange of information? a) The revenue cycle provides sales forecast and customer order information to the production cycle, but the production cycle sends information back to revenue about finished goods production. b) The revenue cycle receives information from the production cycle about raw materials needs. c) The production cycle sends cost of goods manufactured information back to the revenue cycle. d) The production cycle does not exchange information with the revenue cycle. 2. Whether a company uses an AIS, ERP, or incorporates some degree of CIM into its production process, it still needs to collect data about four basic facets of its production operations. The facet that impacts the company's human resource cycle the most is a) the amount of raw material used in a production order. b) the labor hours expended to complete a production order. c) the machine operations performed during a production order. d) the tracking of manufacturing overhead costs incurred for a production order. 3. An AIS should be designed to provide timely and accurate information about production cycle activities that impact the other business cycles. One type of information deals with planning and controlling manufacturing costs and evaluating performance. This type of information is called a) product mix. b) product pricing. c) resource allocation. d) cost management. 4. The basic activities in the production cycle are a) product design and production operations. b) planning, scheduling, and cost accounting. c) raw materials requisitioning, planning, and scheduling. d) Both A and B are correct. 5. The first step in the production cycle is product design. There are several objectives connected with this step. Which objective below is not a product design objective? a) to design a product that meets customer requirements b) to design a quality product c) to minimize production costs d) to make the design easy to track for cost accounting purposes 6. The bill of materials shows the __________ of each product component. a) part number and description b) quantity used
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c) quantity ordered d) both A and B 7. The operations list shows a) the labor and machine requirements. b) the steps and operations in the production cycle. c) the time expected to complete each step or operation. d) all of the above 8. The list which specifies the labor and machine requirements needed to manufacture a product is called the a) bill of materials. b) bill of lading. c) master production schedule. d) operations list. 9. The second step in the production cycle is planning and scheduling. One of the methods of production planning is referred to as push manufacturing. This method is also known as a) manufacturing resource planning (MRP). b)
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Test Bank Ch12 - CH 12 MULTIPLE CHOICE 1. The AIS compiles...

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