AC 389 Ch 5 - Chapter 5 Accounting Information Systems and...

AC 389 Ch 5
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Chapter 5 Accounting Information Systems and Business Processes: Part II True-False Questions 1. The human resource management process is the same thing as the payroll process. 2. The production process is only present in service organizations. 3. The primary objective of the production process is to minimize the use of raw materials in the production process. 4. An AIS’s cost accounting subsystem is an important part of the production process. 5. Inputs to the production process include job time cards, material requisition forms, and the master production schedule. 6. With a job costing system it is not possible to keep track of costs for each item or group of items produced. 7. With a just-in-time inventory approach, raw material inventories are always zero. 8. The bill of materials lists the types and quantities of parts needed to assemble each unit of product. 9. Production cost reports are useful for internal control since they help in calculating budget variances. 10. The financing process concerns a company’s acquisition and use of financial resources. 11. Effective cash management is not an objective of the financing process. 12. Financial planning models are useful to financial managers in helping them to determine an optimal strategy for acquiring and investing an organization’s financial resources. 13. Deposit slips and remittance advices are examples of source documents associated with the financing process. 14. A cash budget is a primary output of the financing process. 15. The term vertical market refers to software distribution processes. 16. Time and billing features in accounting software are important to engineering, legal, and accounting firms. 17. One distinguishing feature of organizations in the professional service industry is the difficulty in measuring the quantity and quality of their output. TB 5.1
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18. Not-for-profit organizations focus primarily on the flow of funds rather than income in their internal accounting systems. 19. Point-of-sale accounting systems are important in the health care industry. 20. Third party billing refers to the payment of many health care bills by insurance companies rather than by patients. 21. The AIS for the health care industry is particularly complex due to third party billing. 22.
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