Multiple Choice Questions Some typical multiple choice questions are given below (answers on last page). In the real test there will be 20 questions. 1 . Which term represents cash, inventory of materials, and buildings a Liabilities b Profits Assets d Revenues 2. Which of the following organizational elements is used in Materials Management (MM)? Sales Organization Shipping Point Division Purchasing organization 3. Which of the following statements is false. A purchase organization a Can be established for the whole enterprise (across company codes) b
Cannot be assigned at enterprise level Is responsible for choosing vendors Is responsible for negotiating contracts 4. Customer master data is divided into the following three main segments, based on organizational level Client, company code, sales area Company code, sales organization, purchasing organization Client, company code, sales organization Client, sales organization, sales area 5. Which of the following statements about shipping points is true? A A shipping point can belong to only one plant A shipping point may be shared by multiple plants A plant can have only one shipping point
A plant need not have a shipping point 6. When a transaction causes a change in status of stock, but not its value, the following document(s) is/are created Goods movement and financial accounting documents Goods movement and management accounting documents Financial accounting and management accounting documents Goods movement only 7. Which of the following activities is not related to the procurement process? A Issue materials Receive materials Prepare for storage Store materials Section B: Short answer questions The marks awarded to these questions will vary.
In the exam you will be told the number of marks available for each question. A) Describe a sales area, and explain its purpose b) Provide a detailed description of the fulfillment process c) Describe material master, and explain the views used in procurement and fulfillment. D) An organization purchases supplies for ADD,OHO and pays for them via a cheese. With reference to the accounting equation, prepare the T accounts to illustrate the impact of this purchase on the general ledger. Note: Further practice questions can be found at the end of each chapter in the codebook. Semester 1 , 2014 Section C: Mini-case study questions (the case study question in the actual exam will not require you to know the details of Global Bikes) Global Bikes is in the process of developing a new business venture. The two co-Coos of Global Bikes, John Davis and Peter Schwartz, have had detailed discussion with Magnums Lee, who currently works as a salesman for a major Australian surfing company. Magnums is a keen surfer himself, and understands the industry well. He believes there is a niche in the current market, providing high quality surf boards ND accessories to expert surfers.