Push Manufacturing, Manufacturing Resource Planning (MRP), EOQ – Quiz
The key terms in these Finance chapters include Push Manufacturing, Manufacturing Resource Planning (MRP), Economic Order Quantity (EOQ),Inventories, Assets, Disasters, Pay Rate, Quiz
“Push manufacturing” is also known as
ahead-of-time production implementation (ATPI).
the economic order quantity (EOQ) system.
just-in-time manufacturing system (JIT).
manufacturing resource planning (MRP). – Correct
For replacement of inventories and assets destroyed by fire or other disasters, an organization needs
adequate insurance coverage. – Correct
stand-by facilities.
source data automation.
All of the above are correct.
Pay rate information should be stored in
electronic time cards.
employee subsidiary ledgers.
employees’ personnel files.
the payroll master file. – Correct
According to the ERM model, ________ help the company address all applicable laws and regulations.
compliance objectives – Correct
operations objectives
reporting objectives
strategic objectives
Whitewater Rapids provides canoes to tourists eager to ride Whitewater River’s rapids. Management has determined that there is one chance in a thousand of a customer being injured or killed. Settlement of resulting lawsuits has an average cost of $850,000. Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless there is evidence of criminal negligence. What is the impact of this risk without insurance?
$850,000 – Correct
$850
$10
$100,000
A ________ shows how a project will be completed, including tasks and who will perform them as well as a timeline and cost estimates.
performance evaluation
steering committee
strategic master plan
project development plan – Correct
Source data automation is often effective in reducing
theft.
intentional errors.
unintentional errors.
accuracy. – Correct
Which control would best prevent payments made to fictitious vendors?
Allow payments only to approved vendors. – Correct
Have an independent bank reconciliation.
Make sure all documents are in order before approving payments.
Restrict access to any payment or approval documents.
Which of the following statements is false regarding the use of incentives, commissions and bonuses in the payroll system?
Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
Incentive schemes can create fraud. – Correct
Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
Incentive schemes can result in undesirable behavior.
“Push manufacturing” is also known as
ahead-of-time production implementation (ATPI).
the economic order quantity (EOQ) system.
just-in-time manufacturing system (JIT).
manufacturing resource planning (MRP). – Correct
For replacement of inventories and assets destroyed by fire or other disasters, an organization needs
adequate insurance coverage. – Correct
stand-by facilities.
source data automation.
All of the above are correct.
Pay rate information should be stored in
electronic time cards.
employee subsidiary ledgers.
employees’ personnel files.
the payroll master file. – Correct
According to the ERM model, ________ help the company address all applicable laws and regulations.
compliance objectives – Correct
operations objectives
reporting objectives
strategic objectives
Whitewater Rapids provides canoes to tourists eager to ride Whitewater River’s rapids. Management has determined that there is one chance in a thousand of a customer being injured or killed. Settlement of resulting lawsuits has an average cost of $850,000. Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless there is evidence of criminal negligence. What is the impact of this risk without insurance?
$850,000 – Correct
$850
$10
$100,000
A ________ shows how a project will be completed, including tasks and who will perform them as well as a timeline and cost estimates.
performance evaluation
steering committee
strategic master plan
project development plan – Correct
Source data automation is often effective in reducing
theft.
intentional errors.
unintentional errors.
accuracy. – Correct
Which control would best prevent payments made to fictitious vendors?
Allow payments only to approved vendors. – Correct
Have an independent bank reconciliation.
Make sure all documents are in order before approving payments.
Restrict access to any payment or approval documents.
Which of the following statements is false regarding the use of incentives, commissions and bonuses in the payroll system?
Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
Incentive schemes can create fraud. – Correct
Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
Incentive schemes can result in undesirable behavior.