its a reviewer for the subject of Operational management, Quizzes of Auditing

Download its a reviewer for the subject of Operational management and more Quizzes Auditing in PDF only on Docsity! MATERIAL MANAGEMENT- OPERATIONAL AUDIT Multiple choice 1. Economic activity involved in manufacturing or distribution is linked to a complex system of suppliers and customers, which must be supported by a transport system. The system as a whole is known as a supply chain. A. Supply Chain B. Supply C. Supply Management D. Supply Chain Process 2. Requires understanding what materials are needed and where to source them, it is also heavily involved in inventory management and storage. A. Materials B. Material Requirement Planning C. Material Management D. Materials Procurement 3. What are the processes of Material Management? A. Purchasing: Storage: Transport: Receiving B. Purchasing: Transport: Receiving C. Purchasing: Storage: Transport: Receiving: Return D. Purchasing: Transport: Storage 4. The process of ensuring the right amount of supply is available in an organization. With the appropriate internal and production controls, the practice ensures the company can meet customer demand and delivers financial elasticity. A. Inventory Planning and Control B. Supply chain Planning C. Material Management D. Audit of Inventory 5. The following are Inventory planning and control best practice except, A. Manage Supplier Relationships B. Create Automated Reports C. Basic Inventory Software D. Conduct a Risk Assessment 6. of inventory records means all goods that should be recorded are actually included in the records. A. Existences B. Valuation C. Rights D. Completeness 7. It is the ownership of goods by the company being audited. A. Existences B. Valuation C. Rights D. Completeness 8. An incorrect end-of-year cut-off total in inventory records. A. Miscounted inventory B. Errors in shipping and receiving of goods C. End-of-year liabilities D. Damage Inventory 9. It is a manufacturing process for planning and controlling the supply chain that converts a master schedule of production into a detailed timetable. A. Master Production Schedule (MPS) B. Inventory Status File (ISF) C. Bills of materials (BOM) D. Material Requirements Planning (MRP) 10. It is a list of the materials required to produce an item. A. End item B. Quantity C. Bill of materials D. Purchase files 11. These are all purchasing procedures except? A. Selection of suppliers B. Payment of invoice C. Placing order D. Packaging 12. A type of purchasing that permits every individual department or its authority to make purchases of its own requirements of materials and is responsible to make its deliveries. A. Decentralized B. Centralized C. Batch buying D. Schedule buying 13. This is typically responsible for selecting suppliers, negotiating and administering long-term contracts, monitoring supplier performance, placing orders to suppliers, developing a responsive supplier base, and maintaining good supplier relations. A. Inventory planning and control B. Purchasing C. Material requirements planning D. Inventory 14. The role of the department is to receive and inspect materials against the purchase order A. Stores B. Purchasing C. Warehouse D. Receiving 15. This is the document sent to the inspector when the receiving department within an organization receives materials, the materials are unpacked and compared to the materials listed in the purchase order. A. Inspection Note B. Rejection Note C. Material Receipts Book D. Materials Received Note or Goods Received Note 16. This is the document prepared if the materials received are not consistent with the purchase order, or if they are deemed unfit for use, the inspecting staff rejects them for return to the supplier. A. Inspection Note B. Rejection Note C. Material Receipts Book D. Materials Received Note or Goods Received Note 17. This refers to the place where materials are kept under custody. Store is an important element of materials management since it is a place that keeps all the materials in a way, by which the materials are well accounted for, are maintained safe, and are available at the time of requirement. A. Stores B. Purchasing C. Warehouse D. Receiving 18. This is typically responsible for selecting suppliers, negotiating and administering long-term contracts, monitoring supplier performance, placing orders to suppliers, developing a responsive supplier base, and maintaining good supplier relations. A. Inventory planning and control B. Purchasing C. Material requirements planning D. Inventory 19. It refers to a continuous fabric, rubber, plastic, leather or metal belt operated over a suitable drive and tail end, and over belt idlers or slider bed for handling materials, packages or objects placed directly upon the belt. A. Dedicated Aisles B. Pallet Loader C. Belt Conveyor D. Pallet Rack Shelving MATERIAL MANAGEMENT (Multiple Choice Questions) 1. The following are purchasing parameters except one: A. Right Quantity B. Right Resources C. Right Contracts D. Right Time 2. It directly influences the profits of an organization as the number of materials a company procures is directly proportional to the amount of money it spends. A. Purchasing B. Receiving C. Materials Requirement Planning D. Inventory Planning and Control 3. Its main objective is cost reduction and efficient handling of materials at all stages and in all sections. A. Purchasing B. Material Management C. Inventory Planning and Control D. None of the above 4. What are the concepts used in purchasing parameters, such as the right quantity? A. Economic Order Quantity B. Economic Purchase Quantity C. Fixed period and fixed quantity systems D. All of the above 5. It is a shipping document showing the type of goods, their quantity and the destination address. A. Consignment B. Waybill C. Bill of Lading D. Back ordering 6. It is the process of placing the exploded requirements in their proper periods based on lead time. A. Offsetting B. Exploding C. Variable costs D. Cross-docking 7. The systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost. A. Aggregate inventory management B. Codification C. Cycle counting D. Value analysis 8. Items used in production that do not become part of the product. These include hand tools, spare parts, lubricants, and cleaning supplies. A. Item cost B. Raw materials C. Finished goods D. Maintenance, repair, and operational supplies (MROs) 9. The following are supply chain risks except for: A. Financial Risk B. Environmental Risk C. Liquidity Risk D. Socio Political Risk 10. This risk is the probability of an organization being unable to sell its goods or the chance that inventory stock will decrease in value. A. Receiving Risk B. Inventory Risk C. Purchasing Risk D. Supply Chain Risk 11. A major part of materials management is ensuring materials going into production are correct and of high value. This helps to keep production running smoothly and improves overall finished goods quality. A. Receiving B. Purchasing C. Supply Chain Planning D. Materials Requirement Planning 12. It refers to the materials maintained by a business in inventory. The term can also refer to the function of holding and issuing inventory, such as a warehousing operation. A. Stores B. Inventory C. Supply Chain Planning D. Purchasing 13. Which is not included in the following? A. Control and scheduling of deliveries. B. Accurate checking and recording of shipments received. C. Preparation for handling and storage. D. Preparation for shipping and receiving. 14. Examine whether vendor balances are reconciled by the management periodically and external confirmations are obtained. Ascertain the reasons for the creation of “Debit Notes” and “Credit Notes”. A. Both statements are true. B. Both statements are false. C. First statement is only true. D. Second statement is only false. 15. All of the following are included in the audit checklist for store management, except? A. Control copy of store department SOPs available B. Weighing balance have proper tag of calibration and status. C. Packaging materials are stored together with raw materials. D. Approved labels are pasted on all approved raw materials. 16. Internal audit checklist for the purchase department should include all of the following, except? A. Check whether an Approved Vendor list of suppliers / authorized dealers has been prepared and is updated on a regular basis. B. The Approved Vendor list should carry all the items of purchases - Raw Material / Engineering / Consumables / Packing material etc. C. Check whether a Purchase Manual has been prepared and approved. D. All of the above 17. Which is not a level of purchase process? A. Billing B. Vendor selection procedure C. Accounting of purchases D. Internal process regarding receipt of material 18. All of the following are auditors checkpoints for purchases, except? A. Verify whether the SRF is approved by proper authority. B. Check availability of visit report or SEF with the company C. Conduct physical count of inventory. D. Check whether proper documents are obtained by the company to financial performance. 19. This pertains to the areas of supply planning, production planning, inventory planning, capacity planning, and distribution planning. A. Demand Management B. Supply Managements C. Sales and Operations Planning D. Product Portfolio Management 20. Which of the following is not an audit process? A. Risk assessment B. Financial reporting C. Audit procedures D. Reporting True or False 1. Inventory refers to the different types and volumes of goods a company holds at a particular time. – True 2. The quantities are verified and tallied with the purchase acquisition. – False, purchase order 3. Storage plays a vital role in the operations of a company – False, Store 4. Freight bill Is an internal document produced after inspecting the delivery/goods received note. – False, Goods receipt note 5. Variable costs are those directly associated with the amount produced or sold. examples are direct labor, direct material, and commissions of the sales force. – True 6. Bill of Lading is a list of the raw materials, sub-assemblies, intermediate assemblies, sub- components, parts, and the quantities of each needed to manufacture an end product. – False, Bill of materials 7. Delivery risk refers to the chance that a counterparty may not fulfill its side of the agreement by failing to deliver the underlying asset or cash value of the contract. – True 8. Supply Chain Planning simplifies the process of production by masterfully breaking down inventory requirements and criteria into periods of planning. –False, Materials Requirement Planning 9. Legal risk can range from an unexpected or unfavorable change in exchange rates all the way to a supplier’s bankruptcy. – False, Financial Risk 10. Receiving takes delivery of inbound shipments and releases and materials to inventory. – True 11. All the vendors added to the approved list should have a connection with the employees of the company. – False, should not have a connection 7. It is the process of multiplying the requirements by the usage quantity and recording the appropriate requirements throughout the product tree. a. Offsetting. b. Exploding the requirements. c. Planned orders. d. Lead time. 8. It is the process of placing the exploded requirements in their proper periods based on lead time. a. Offsetting. b. Exploding the requirements. c. Planned orders. d. Lead time. 9. It is described as "a listing of all the subassemblies, intermediates, components, and raw materials that go into manufacturing the parent assembly stating the quantities of each necessary to build an assembly". a. Bills of material. b. Inventory records. c. Master production schedule. d. Nature of Demand. 10. It outlines which final products must be created, how many must be produced, and when they must be finished. By supplying the initial input for the necessary goods, it powers the MRP system. a. Bills of material. b. Inventory records. c. Master production schedule (MPS). d. Nature of Demand. 11. The stage of production where raw materials and other commodities are received from suppliers or vendors. It is also the stage that ensures the exact quality, quantity, type and specification of shipments ordered is what is received through actions such as labeling, documenting, unloading, inspecting and more to create a fast and reliable process. a. Recording b. Issuing c. Receiving d. Warehousing 12. The following are the objectives of store management, except. a. To prevent overstocking and understocking of the materials b. To keep the materials as long as they are required for use c. To ensure proper and continuous control over the materials. d. To ensure most effective utilization of available storage space 13. It is the recording errors by the shipper, such as incorrect qualities, the wrong product or paperwork mistakes, so shippers can be alerted to problems. a. Dock Utilization b. Receiving Error Reporting c. Dock to Stock Time d. Supplier Shipping Problems 14. The following are the functions of Storekeeping, except. a. Receipt b. Records c. Utility d. Verification 15. It is the total time needed to move materials through the system to usability. a. Dock Utilization b. Receiving Error Reporting c. Dock to Stock Time d. Supplier Shipping Problems c. Efficient record keeping and management reporting d. Efficient purchasing, storing, consumption and accounting for materials is an important objective. 19. Which is not part of Ten R’s? a. Right Attitude b. Right Place c. Right Parameters d. Right Contracts 20. Inventory control basically deals with two problems: 1. Order Level & 2 16. In this method the oldest products in ? a company's inventory have been sold first and go by those production costs. a. LIFO Method b. Safety Stock c. Batch Tracking d. FIFO Method 17. In any industry this means buying of equipment, materials, tools, parts etc. required for industry. a. Inventory Control b. Receiving c. Purchasing d. Management Material 18. Which is not an objective of Purchasing? a. To achieve maximum integration with other departments of the company. b. To train and develop the personnel. a. Order Price b. Order Quality c. Order Quantity d. Order Place True or False 1. Business risks occur when the raw materials your business relies on aren’t delivered on time or at all, thereby causing disruption to the flow of product, material, and/or parts.  False, Supply Risks 2. The final step in your internal audit is to examine your data log. The data log keeps track of all of the information that your team members log.  True 3. Reducing waste is important to save costs and conserve resources.  True 4. Supply Chain Planning is defined as “the function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre- decided service to the customer at a minimum cost”.  False, Materials Management 5. Material requirements planning has two major objectives: determine requirements and keep priorities current.  True 6. Dependent demand is not connected to any other product's demand. For instance, if a business produces tables made of wood are in dependent demand.  False, Independent demand 7. The bill of material shows all the parts required to make one of the items.  True 8. To ensure that the items in the master production schedule are produced on time, material requirements planning aims to identify the materials required, their quantities, and their due dates.  True 9. The basic responsibilities of a store are to act as custodian and controlling agent for the materials to be stored, and to provide service to users of the materials.  True 10. Receiving involves physical control of materials, preservation of stores, minimization of damage through timely disposal and efficient handling, maintenance of stores records and stocking.  False, Stores 11. Receiving in materials management involves checking and cleaning components to the correct customers.  False, distributing 12. Labeling containers should exclude important information about the item that will aid identification.  False. Include 13. Selection of the supplier is the first step in the purchasing procedure.  FALSE, Need recognition. 14. Inventory Control is a planned approach of determining what to order, when to order and how much to order and how much to stock so that costs associated with buying and storing are optimal without interrupting production and sales.  TRUE 15. LIFO method the oldest products in a company's inventory have been sold first and go by those production costs.  FALSE, FIFO method 13. In this step of assessment is brainstorming, part interviewing, and part gathering data from different systems of record. A. Identify your risk B. Risk Analyzation C. Risk Evaluation D. Define Your Mitigation Strategies and Response Plans 14. In this step of assessment supply chain risk has a checklist to evaluate the risks in a quantitative way in order to help you make decisions on how best to treat those risks or whether they need to be managed at all. A. Identify your risk B. Risk Analyzation C. Risk Evaluation D. Define Your Mitigation Strategies and Response Plans 15. In this step of assessment you are looking to qualify the causes and impacts of each risk. A. Identify your risk B. Risk Analyzation C. Risk Evaluation D. Define Your Mitigation Strategies and Response Plans 16. Below are the fundamentals practices to be included in supply chain risk management plan except: A. Look for other providers B. Discussions with key suppliers C. Increasing supplier eligibility D. Count physical inventory 17. It is a transit document issued by the carrier to the consignor during the shipment of the goods to the consignee A. Waybill B. Bill of Lading C. Carnet D. Packing List 18. It is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. A. Bonded Warehouse B. Smart Warehouse C. Bunded Warehouse D. Bounded Warehouse 19. It is a way to catalog and reference products in your inventory. A. HS B. ABC C. SKU D. CO 20. It is a quality control system that businesses use to group similar sets of stock. A. Batch Tracking B. Stock Tracking C. Item Tracking D. Batched Tracking True or False 1. The nature of Supply Chain Planning is to sustain the lowest raw materials and finished product levels in store. To organize manufacturing, delivery schedules, and purchasing activities. - FALSE , MATERIALS REQUIREMENT PLANNING 2. A master production schedule is one of the critical processes of Materials Requirement Planning. - FALSE, TRANSACTION 3. Purchasing is responsible for learning of the internal requirements, locating and selecting suppliers, obtaining the materials, parts, supplies and services needed to produce a product or provide a service. - TRUE 4. In the Receiving Audit Program, the auditor must obtain an understanding and evidence of the shipping/receiving process, reviews previous internal audit reports and follow-up on any recommendations. - TRUE 5. In the Purchasing Audit Program, auditors must identify PR/PO documentation requirements and approval levels and limits. - TRUE 6. In the Supply Chain Planning Audit Program, external audit programs can begin by having the supplier examine themselves for areas of weakness or improvement. - TRUE 7. External risks can be triggered by events upstream (that is, among your suppliers) or downstream (among your customers). - TRUE 8. Mitigation risks result from unforeseen or misinterpreted consumers. - FALSE, DEMAND RISK 9. Disturbances in internal operations or processes create planning risks. - FALSE, MANUFACTURING RISK 10. Risk identification is part brainstorming, part interviewing, and part gathering data from different systems of record. - TRUE 11. After risk identification and analysis, the next item on your supply chain risk assessment checklist is to mitigate strategies of the risks in a quantitative way in order to help you make decisions on how best to treat those risks or whether they need to be managed at all. - FALSE, EVALUATE THE RISK 12. There are four fundamental practices that are likely to be included in the supply chain risk management plan. FALSE, FIVE FUNDAMENTAL 13. Goods that do sell are considered deadstock inventory. FALSE, DO NOT SELL 14. Labor Cost refers to the total cost your business incurred to get new products into inventory. FALSE, LANDED COST 15. Demand Forecasting is the process of estimating future customer demand by looking at your historical sales data. TRUE MCQ 1.) This is the process of transforming inputs into a set of desired outputs through the use of labor, capital, and energy. a. Machine Maintenance and Replacement b. Selection of Product and Design c. Production d. Quality Control 2.) This step is where prototypes of the product are built, allowing the design engineers to test the product’s quality and if it fits the requirements and expectations of the entity. a. Product Screening b. Preliminary Design and Testing c. Idea Generation d. Total Quality Management 3.) Which among the following is not a critical process involving Production Planning & Control (PPC)? a. Loading b. Routing c. Expedition d. Justification 4.) It is the proactive monitoring of the production environment and promptly responding to any disturbances and issues that may arise during production. a. Production Support b. Quality Control c. Selection of Product and Design d. Machine Maintenance and Replacement 5.) This process ensures that the products or services meet certain standards of quality and requirements of the management and the industry. a. Quality Assurance b. Quality Audit c. Quality Assessment d. Quality Control 1.) This involves the entire process of designing a product, from the user’s perspective, that addresses their needs and expectations. a. User Experience (UX) Design b. Human-Centered Design (HCD) c. A/B Testing d. Usability Testing 2.) It is the process of evaluating the quality of products or services against predetermined standards. a. Statistical Process Control (SPC) b. Quality Assurance (QA) c. Total Quality Management (TQM) d. Six Sigma 3.) This involves managing and maintaining the configuration of the system, such as software and hardware components, as well as managing and releasing new versions of the system. a. Incident and Problem Management b. Configuration and Release Management c. Monitoring and Performance Management d. Capacity and Availability Management 4.) A computer-based inventory management system used to plan manufacturing activities, manage inventory and generate purchase orders. a. BOM (Bill of Materials) b. Kanban c. Cycle time d. MRP (Material Requirements Planning) 5.) It is a process that involves regular servicing, troubleshooting, and replacing of machines and equipment to keep them functioning correctly and in optimal condition. a. Production Support b. Quality Control c. Machine Maintenance and Replacement d. Selection of Product and Design SCOPE 3 AND SCOPE 4 1.) What is the risk assessment of production? I.) Identify Hazards II.) Assess Risks III.) Evaluate Controls IV.) Implement Controls V.) Monitor and Review a.) I only b.) I, III, V c.) II, III, IV d.) I, II, III, IV, V 2.) The following are the risks in auditing the production, except: a.) Potential Liability b.) Cost Overruns c.) Conflict of Interest d.) Unfamiliarity with Processes 3.) Which of the following is not the risk in auditing the production planning and control? a.) Inaccurate Data b.) Inadequate Resources c.) Lack of Independence d.) Inadequate Understanding of Production Processes 4.) Which of the following is true in auditing the machine maintenance and replacement? a.) If the personnel conducting the audit are not qualified or experienced, there is a chance that the audit results will be reliable. b.) If the records of maintenance and replacement activities are complete, the audit process may be compromised. c.) If the audit is not conducted properly, there is a risk of misclassifying equipment, resulting in inaccurate audit results. d.) There is no risk that the data collected during the audit may be inaccurate or outdated due to incorrect records or lack of proper maintenance. 5.) Which of the following is not true in auditing the production support? a.) Auditing production support processes can be a time-consuming process. b.) Auditing production support processes often requires access to a wide range of information and data. c.) Auditing production support processes can be a costly process. d.) All of the above are true. Scope 5 1. Which of the following is NOT an audit program of Production Support? a.) Review the Production Support Service Level Agreement (SLA) to ensure that it is up-to-date. b.) Review the organization’s production environment and ensure that all components are properly configured and in use. c.) Keep track of machine parts and supplies. d.) Review the roles and responsibilities of each team member related to production support. 2. Which of the following is NOT an audit program of Selection of Product & Design? a.) Identify the objectives of the product selection and design process. b.) Review existing product and design criteria. c.) Assess the effectiveness of the production planning and control process. d.) Develop a list of potential products and designs to be evaluated. 3. Which of the following is NOT an audit program of Production Planning & Control? a.) Assess the effectiveness of the production planning and control process. b.) Audit Quality: Quality should be audited regularly to ensure that all products meet the company’s standards. c.) Analyze the current production scheduling methods and ensure their effectiveness. d.) Evaluate the accuracy of the forecasts by comparing them to actual sales data. 4. Which of the following is NOT an audit program of Quality Control? a.) Implement Quality Improvement Plan: A quality improvement plan should be created to ensure that any quality issues are addressed and corrected in a timely manner. b.) Audit Quality: Quality should be audited regularly to ensure that all products meet the company’s standards. c.) Review existing product and design criteria. d.) Document Quality: Quality should be documented to ensure that all products meet the company’s standards. 5. Which of the following is NOT an audit program of Machine Maintenance & Replacement? a.) Keep track of machine parts and supplies. properly configured and in use. c.) Assess the process for disposing of any machines that are no longer viable. d.) Establish a feedback system: Establish a feedback system to ensure that any issues with machine scheduling methods and ensure their effectiveness. 15 True or False Questions (If False, Why?) 1. Reactive maintenance is a maintenance system that focuses on increasing the overall efficiency of equipment and reducing downtime. FALSE- Total Productive Maintenance (TPM) 2. Production Planning and Control (PPC) is the process of coordinating the activities of a production system in order to achieve the desired output in a timely and cost-effective manner. TRUE 3. Aesthetics-Focused Product is designing products that are visually appealing as well as functional. TRUE b.) Review the organization’s production environment and ensure that all components are 4. Statistical Process Control (SPC) is a comprehensive approach to quality that focuses on continuous improvement and customer satisfaction. FALSE- Total Quality Management (TQM) 5. There is a risk that the data collected during the audit may be inaccurate or outdated due to incorrect records or lack of proper maintenance. TRUE 6. The auditor must have enough resources to adequately audit the production planning and control processes. If the auditor does not have enough resources, they may not be able to identify all of the issues that could affect the production process. TRUE 7. Auditing production support can be a complex process that requires specialized knowledge and experience. Without access to personnel with the necessary expertise, auditors may be unable to accurately assess the effectiveness of the production support processes. TRUE 8. Auditing a production department can lead to a conflict of interest if the auditor has a personal relationship with the company or its personnel. This could lead to biased or inaccurate results. TRUE 9. Conducting effective quality control procedures will potentially decrease customer satisfaction and reduce the chance of costly problems and recalls. FALSE - Increase customer satisfaction 10. Troubleshooting is performed when an issue was detected during the machine maintenance and replacement procedure, allowing the maintenance personnel to unveil the root cause of the problem and determine what course of action to take in resolving the issue. TRUE 11. In desiring an efficient and effective production of an organization, they shall integrate production planning and control to ensure that the production meets the customer requirements, that they have an adequate supply of resources, and that the cost of production is kept to an acceptable level. TRUE 12. Production is viewed as a means of creating utility, in which, “utility” is defined as the power of disappointing human needs. FALSE - Satisfying 13. To audit selection of product & design you should analyze the data and select the product and design that best meets the criteria. TRUE 14. To audit selection machine maintenance & replacement you should establish a maintenance schedule: Establish a regular schedule for servicing and inspecting all machines, including any preventive maintenance required. TRUE 15. To audit selection production support you should review the organization’s production environment and ensure that all components are properly configured and in use. TRUE Multiple Choice Questions - 20 Items 1. In what level of production support where the Initial help desk deals with the user issues with already scripted solutions and create an incident to assign it to other teams. A. Level 1 B. Level 2 C. Level 3 D. Level 4 2. In auditing checklist of production support, which of the following is not belong in the list of processes/activities to be included in the scope of the audit; A. Maintenance B. Testing C. Selection of Product D. Servicing 3. Which of the following application Maintenance & Routine Support do? per business requirements B. Helping clients in setting up leading support practice for faster incident resolution C. Monitoring of daily inbound load and outbound extractions and co-ordinate the resolution of interface file data issues with downstream systems support teams D. Providing training to super users & Level 1 support teams remotely or on-site 4. Which level does technical support is for the application or software. They know the flow of the application and do deep dive into the issue and fix it if they can if not escalate further. A. Level 1 B. Level 2 C. Level 3 D. Level 4 A. Daily application maintenance support, execution of complex & non-complex configuration changes into an existing setup as MCQ 1. It refers to routine activities and/or corrective or preventive repairs done on assets to prevent damage and prolong life expectancy. a. Repair b. Controls c. Maintenance d. Replacement 2. It is the process of replacing used equipment with a substitute; mostly new equipment of better usage. a. Repair b. Controls c. Maintenance d. Replacement 3. Beyond the cost implications of production disruption, management would also seek to ensure that the organization’s investment in plant and machinery is through adequate and 6. It provides the day-to-day responsibility for an application once it has been put into production. A. Application Support ✓ B. Quality Control C. Personnel D. Safety 7. Ensure that employees are adequately protected from potential hazardous processes, equipment and substances. A. Quality Control B. Personnel C. Application Support D. Safety ✓ 8. The success of production process will inevitably be dependent on the extent and quality of the human resources. A. Application Support B. Quality Control regular maintenance and that serious and potentially costly faults are . a. Protected and minimized b. Protected and maximized c. Effective and minimized d. Effective and maximized 4. All of the following are control objectives for maintenance, except? a. To ensure that all production equipment and machinery is cost-effectively maintained in working order. b. To prevent/minimize any disruption to production caused by the failure of equipment, plant, and machinery. c. To ensure that adequate and appropriately skilled maintenance staff are employed to fulfill the defined maintenance obligations. d. To ensure that production processes are disrupted by equipment failure due to any inadequacies in the maintenance of the same. 5. Which of the following is not an example of risk and control issues for maintenance to be considered by an auditor? a. What measures are in place to ensure that all production equipment and machinery are maintained in working order? b. Has management defined, documented, and implemented a suitable maintenance plan which identifies the servicing needs for all key equipment? c. How is management assured that all the intended maintenance work is correctly conducted? d. How is the auditor will make a judgement from the evidences he made? C. Personnel ✓ D. Safety 9. Approach to production involves the definition and subsequent monitoring of appreciate standard, thus ensuring that they are both achieved and monitored for their relevance on ongoing basis. A. Quality Control ✓ B. Personnel C. Application Support D. Safety 10. Deploy the changes to the QA and production environments and test them to ensure that the problem is fix effectively. A. Planners B. Developers C. Manager D. Support Team ✓ 11. It is called a product development begins with ideas. a. Process Specification b. Design Review c. Idea Generator ✓ d. Market Test 12. It used to determine the customer acceptance. a. Prototype Development b. Market Test ✓ c. Idea Generator d. Process Specification 13. A extent to which there is a absence of variety of product, services, or process. a. Mass Customization b. Delayed Differentiation c. Modular Design d. Standardization ✓ 14. It is also called Taguchi Method a. Reliability b. The Degree of Newness c. Cultural Differences d. Robust Design ✓ 15. It is used to measure the ability of product or a entire system. a. Reliability ✓ b. Life Cycles c. Standardization d. Robust Design 16. A production process that reduces inventory by supplying parts and resources at the precise moment they are needed. a. Just-in-Time (JIT) ✓ b. Bill of Materials (BOM) c. Standardization d. Kanban 17. A list of all the parts and supplies needed to construct a product a. Just-in-Time (JIT) b. Bill of Materials (BOM) ✓ c. Standardization d. Kanban 18. A system for controlling the flow of materials and scheduling information. a. Just-in-Time (JIT) b. Bill of Materials (BOM) c. Standardization d. Kanban✓ 19. Identifying the required ideal amount of manufacturing capacity to fulfill consumer demand. a. Just-in-Time (JIT) b. Bill of Materials (BOM) c. Capacity Planning✓ d. Kanban 20. The process of choosing the time and location where production operations will occur a. Just-in-Time (JIT) b. Bill of Materials (BOM) c. Capacity Planning d. Scheduling✓ 15 TRUE/FALSE 1. Maintenance is the process of replacing used equipment with a substitute; mostly new equipment of better usage. False, Replacement . 2. Maintenance is ensuring that production processes are not unduly disrupted by equipment failure due to any inadequacies in the maintenance of the same. True 3. One of the objectives for maintenance is to ensure that all maintenance costs are accurately identified, justified, recorded, authorized and accounted for. True 4. If something goes wrong with the application, the support team will collaborate with the developers to gather information about the problem. True 5. In the developers’ environment many of the safety issues will be the subject of specific regulations and legislation and management will therefore need to ensure ongoing compliance. False, Production Environment 6. Quality Control ensure that both materials received and goods produced are to the required standards. True 7. Production support ensure that effective testing and inspection methods are defined and implemented. False, Quality Control 8. Customer Satisfaction begins with a product and design. True 9. Flexibility, Production Process and cost are key considerations in process design. False, Production Time 10. The main focus of designers and service design is customer satisfaction. False, Product 11. The Three goals are Legal, Ethical and Environmental. True 12. Most organization have numerous government agencies that regulate them. True 13. Production Control describes in detail how a company's products and services will be manufactured. A production plan defines the production targets, required resources and overall schedule, together with all the steps involved in production and their dependencies. False, Production Planning 14. Production Planning is the process of overseeing, managing, and controlling the tasks involved in producing goods or services. It uses different control techniques with the aim to meet production targets on schedule and according to the set quality. False, Production Control 15. Material Requirements Planning (MRP) a computerized method for managing inventory that is used to plan production processes, inventory control, and creation of purchase orders. True 19. Those who come into direct and indirect touch with your target clients a. Place b. People c. Price d. Buyer Persona 20. Is the extent to which people are able to recall and recognize your brand. a. Brand Positioning b. Digital Marketing c. Brand awareness d. Brand Recalling MULTIPLE CHOICE 1. It is the process of identifying, anticipating, and satisfying customer needs and wants through the creation, promotion, and distribution of a product or service. a. Production b. Marketing c. Budgeting d. Sales 2. The following are included in the critical processes of marketing, except a. Market Research b. Product Development c. Pricing d. Reporting 3. In marketing it refers to the exchange of goods or services for money between a buyer and a seller. a. Promotion b. Budgeting c. Transaction d. Advertisement 4. The following are types of transactions, except a. B2C transactions b. B2B transactions c. C2B transactions d. C2C transactions 5. The following are part of promotional mix, except a. Sales Promotion b. Packaging c. Exhibition d. Place 6. It is a promotion via a diverse range of initiatives, in some cases offering an incentive for individuals to respond actively. a. Exhibitions b. Personal Selling c. Sales promotion d. Publicity 7. It refers to the computer hardware and related software and middleware used within the organization. a. Data repository b. IT systems c. Front-office applications d. Back-office applications 8. The following are reasons why social media marketing is so powerful, except a. Earned media b. Shareable content c. Customer segmentation d. Competitive intelligence 9. It is a form of communication that is used to promote or sell a product, service, or idea. a. Production b. Advertising c. Budgeting d. Sales 10. These are the nature of advertising to consumers about a product, service, or idea, except a. To inform b. To persuade c. To remind d. None of the above 11. It is the systematic process of gathering and analyzing information about a market. a. Market Research b. Budgeting c. Sales d. Marketing 12. The transaction and critical processes of market research inlcude: a. Problem definition and Research design b. Data repository c. Market Research d. Product Development 13. It refers to the systematic process of collecting, analyzing, and distributing information to support marketing decision making. a. Market Research b. Marketing Information Management c. Marketing d. Advertising 14. These are included to the several key elements of Marketing Information Management, except a. Systematic Approach b. Data-driven decision Making c. Customer focus d. None of the above 15. MIM stands for a. Media Information Management b. Mass Information Management c. Marketing Information Management d. Marketing Information Manager 16. It refers to websites and apps that allow users to create, share, and exchange information. a. Social Media b. Facebook c. Google Chrome d. Internet 17. These are the characteristics of social media, except a. Connectivity b. Accessibility c. Viral spread d. None of the above 18. These refer to the exchange of value that takes place between business, organizations, and individuals on social media platforms. a. Transactional b. Social Media Transactions c. Advertising d. Marketing 19. An element in an organization’s marketing mix that serves to inform, persuade, and remind the market. a. Research and Development b. Sales c. Budgeting d. Promotion 20. It is a type of promotion via news release to chosen news media. a. Advertising b. Publicity c. Direct Marketing d. Sponsorship TRUE OR FALSE 1. Advertising is a type of promotion via an advertisement in a chosen advertising medium. TRUE 2. The promotional budget is a specified amount of money set aside to promote the products or beliefs of a business or organization. TRUE 3. Target and message are included in the promotional mix checklist. TRUE 4. Marketing Management is a key function in the development and success of a product. FALSE, PRODUCT MANAGEMENT 5. Advertising is an element in an organisation's marketing mix that serves to inform, persuade, and remind the market about its products or services. FALSE, PROMOTION 6. Direct marketing is a promotion via any person-to-person communication medium. TRUE 7. The specific amount of money set aside to promote the products or services of a business or organization is the marketing budget. FALSE, PROMOTIONAL BUDGET 8. Internal data are information that are gathered about the marketplace and consumer. FALSE, MARKETING RESEARCH 9. Product Roadmap is a clear and concise statement of what a product is and what aims to achieve. FALSE, PRODUCT VISION 10. GTM stands for Go-to-market. TRUE 11. Persuading isa promotional activity which aims to sell a product or service to a target audience. FALSE, ADVERTISING 12. Print Media, Electronic Media, and Outdoor Advertising are considered as medium of advertising. TRUE 13. Target audience is the number of people who are exposed to an advertising campaign. FALSE, REACH 14. Marketing Information Management involves the collection, analysis, and use of data to inform marketing decisions. TRUE 15. Marketing Information Management focuses on 4 main areas- internal data, competitive intelligence, marketing research, and external threats. FALSE, 3 MAIN AREAS- INTERNAL DATA, COMPETETIVE INTELLIGENCE, AND MARKETING RESEARCH. Multiple Questions (20 items) 1. It is a type of marketing strategy that frequently uses promotional costs such as hiring sales employees, running sales promotions, special orders, giving away presents, offering coupons, and advertising. a. Product Promotion b. Non-price promotion c. Advertising d. Social Media 2. Encompasses not just the overall strategy and product roadmap but also market research, industry trends, and competition analysis. a. Product Strategy b. Inbound Product Management c. Promotion d. Tactics 3. This is often known as "buyer intent," this term refers to how likely clients are to use your company to purchase goods or services within the next six to twelve months. a. Consumer b. Purchase intention c. Buyer d. Social selling 4. This is a marketing tactic in which a company uses brief campaigns to generate interest in and demand for a product, service, or other offers. a. Product Promotion b. Sales Promotion c. Business Proposal d. Revenue 5. The auditor should seek an explanation from the of the company if the differences sound unusual. a. Client b. Production c. Cashier d. Management 6. Before working on the general ledger of this expense, the auditor should make sure that the and the are reconciled. a. Financial Position and Income Statement b. Bank Statement and Book Statement c. Trial Balance and Adjusted Balance d. General Ledger and Trial Balance 7. Statement 1: The agreed Contract is an important key for the testing. Statement 2: The auditor should seek an explanation from the supplier of the company if the differences sound unusual. a. Both True b. Both False c. False; True d. True; False 8. The auditor should obtain for the period of auditing as well as the relevant period. a. Book statement b. Bank statement c. Cash flow statement d. Financial statement 9. It serves as the public face of a company. a. Sales b. Marketing c. Customer service d. Human resource 10. Which of the examples DO NOT affect the brand perception and value directly? a. Customer reviews b. Viral posts c. Immorality d. Feedback from employees TOPIC 4: SALES Multiple Choice. 1. These risks refers to potential issues regarding the daily business of the company. a. Operational risk b. Potential risk c. Risk management d. Marketing risk 2. These types of risks relate to market variables. a. Operational risk b. Potential risk c. Risk management d. Marketing risk 3. It is the time during which a project is constructed or implemented. a. Planning b. Implementation c. Budgeting d. Forecasting 4. Which of the following are part of the four components of implementation? a. Obtaining resources b. Developing schedules c. Executing the marketing program d. All of the above 5. This type of risk means you’re trying to avoid compromising events as a way to eliminate liability exposures. a. Risk avoidance b. Risk controlling c. Risk transfer d. Risk sharing 6. To set sales goals, you can make use of the S.M.A.R.T methodology except a. Setting attainable goals b. Ensuring that goals are relevant c. Setting measurable goals d. Setting strategic goals 7. It is the process of taking active steps to achieve your desired outcome. a. Goal setting b. Sales c. Target performance d. Budgeting 8. These are the sales objectives meant for the sales team of a company. a. Sales goals b. Organizing c. Forecasting d. Budgeting 9. It is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives a. Sales b. Leadership c. Organizing d. Innovating 10. The following are the elements that must be present in order to make a sale valid except a. Mutual agreement on the terms of exchange b. The incompetence of both the seller and the buyer to enter into a contract c. Something that is capable of being transferred d. A consideration in money (or its equivalent in value) paid or promised 11. It provides appropriate information on a regular basis that can help line staff to make better management decisions. a. Cycle Management/PEMT b. Evaluation c. Controlling d. Sales Environment 12. It is the culture, habitat, and camaraderie you cultivate for your sales team. a. Programme Cycle Management/PEMT b. Sales Environment c. Behavior-based outcome d. Sales efforts 13. A systematic assessment of a programme, project or strategy that is as objective as possible and focuses on relevance, impact, effectiveness and efficiency by comparing expected results with actual results. a. Evaluation b. Sales Environment c. Profitability indices d. Controlling 14. Its measures for assessing sales force performance include professional selling skills, professional knowledge, and personal characteristics. a. Outcome-based measures b. Sales Environment c. Profitability indices d. Professional development 15. These are used when management wants to control the performance of both the selling and non-selling activities of the sales force. a. Outcome-based measures b. Activity quotas c. Combination quotas d. Profitability indices 16. is ensuring that all of your organization’s sales communications follow the rules set by the government. a. Sales b. Sales Compliance c. Sales Management d. Sales Promotion 17. It is where you should look for sales compliance thru, except: a. Call centers and messaging b. Emails and text c. Web and Social media d. Non-government organization 18. Those risks arising from non-compliance with laws, regulations, procedures and contracts, eg, breach of VAT rules leading to a fine. a. Compliance Risks b. Operational Risks c. Financial Risks d. Risk 19. A measurement with a defined set of goals and tolerances that gauges the performance of an important business activity. a. Risk Indicator (KRI) b. Key Performance Indicator (KPI) c. Key Control 20. The current and prospective risk to earnings or capital arising from violations of or nonconformance with laws, rules, regulations, prescribed practices, internal policies and procedures, or ethical standards. a. Sales Compliance b. Governance c. Compliance Risks Profile True or False. 1. Obtaining resources is one of the component of implementation. (TRUE) 2. Planning phase keep the project on track with careful monitoring and control processes. (FALSE,Implementation) 3. Marketing risks are not related to marketing variables. (FALSE, are related) 4. Following a budget is vital to the success of the most project. (TRUE) 5. In an accounting context, sales refers to a company's revenue earned from the sales of products or services (net sales). TRUE 6. Goal setting is a primary function of organizing, along with holding others accountable for their respective goals and objectives. FALSE- LEADERSHIP 7. Sales goals are the sales objectives meant for the sales team of a company. TRUE 8. Budgeting provides a framework for a business’ financial objectives — typically for the next three to five years. FALSE – PLANNING 9. Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. TRUE 10. Performance standards are planned achievement levels the sales organization expects to reach at progressive intervals throughout the year. (TRUE) 11. Coordinated monitoring systems enable line staff to process management-related information that is irrelevant to strategic questions. (FALSE, RELEVANT) 12. Profitability indices include such measures as number of sales calls made, selling expenses as a percentage of sales volume, and number of service calls. (FALSE, SALES EFFORTS ) 13. Key Risk Indicator is a proactive measurement for future and emerging risks that indicates the possibility of an event that adversely affects business activities. TRUE 14. Governance are processes and structures implemented to communicate, manage, and monitor organizational activities. TRUE 15. Key Risk Indicator is a measurement with a defined set of goals and tolerances that gauges the performance of an important business activity. FALSE – KEY PERFORMANCE INDICATOR MCQ 1. It ensures that sales goals are met and that resources are used effectively to achieve the best possible results. a. Sales b. Goal Setting c. Planning, Budgeting, and Organizing d. All of the above 2. is a critical process of sales that discusses the terms of the sale with the potential customer, including the price, payment terms, and any other relevant details. a. Negotiation b. Closing c. Fulfillment d. After sales report 3. What is a sale operation transaction that responds to customer inquiries, resolving customer issues, and providing after-sales support? a. Order Processing b. Customer Service c. Reporting and analysis d. None of the above 4. It refers to the processes of monitoring and assessing the effectiveness and efficiency of sales activities and strategies. a. Sales b. Goal Setting c. Controlling and Evaluating d. None of the above 5. Which is not a type of sales environment? a. In office Sales Environment b. Remote Sales Environment c. Incentive-based Sales Environment d. All items mentioned above are types of Sales Environment 6. In sales, the auditor used this assertion to confirm if the sales transactions have been recorded in a correct accounting period. a. Occurrence b. Cut-off c. Completeness d. Fraud detection 7. It is used to determine whether the transactions recorded on financial statements have taken place. a. Occurrence b. Cut-off c. Market audit d. Fraud detection 8. This audit process evaluates the overall system process and control environment of a company. a. Completeness b. Internal audit of the sales process c. Reviewing the sales plan d. Evaluation of external factors 9. It enables the auditor to document the results after the assessment and to create realistic and achievable recommendations to improve the sales process. a. Internal audit of the sales process b. Occurrence c. Preparing a report d. Evaluation of external factors 10. This audit procedure was conducted to review the company's entire sales processing cycle. a. Evaluation and analysis of manpower b. Collecting Data c. Internal audit of the sales process d. Fraud detection 11. All of these are the function of control risk assessment credit sales transaction except a. Invoicing customers b. Accepting customer orders c. Depositing cash in bank d. Approving credit 12. What is the possible test of operating effectiveness of receiving cash receipts? a. Inquire supervisors about the result of surveillance b. Use of cash register c. Independent check of agreement d. Examine bank reconciliation 13. All of these are function of control risk assessment cash receipts transaction except a. Depositing cash in bank b. Recording the receipts c. Receiving cash receipts d. Invoicing customers 14. In credit sales transactions, the necessary control under shipping sales order is independent check by clerks of agreement of goods received from warehouse with approved sales order.. a. Auditor b. Dispatcher 13. It is associated with the use, ownership, operation, and adoption of information technology within the organization. a. Information risk b. Hubris risk c. Information risk d. Tactical risk 14. It is characterized by overconfidence and arrogance, and it causes the person (s) in charge to believe that they are doing nothing wrong. a. Hubris risk b. Information risk c. Strategic risk d. Reputation risk 15. It refers to the uncertainty relating to the price and quantity of goods that are available for sale to consumers. a. Sales risk b. Reputation risk c. Hubris risk d. Information risk 16. What procedure to be done if sold goods that are still on display are labeled with a note “SOLD to: xxx”? a. Examine charge sales invoice. b. Observe procedures and inspect documents pertaining to deliveries. c. Inquire the person in-charge for shipping goods. d. Inquire information on the process and conditions when a customer returns the product and/or asks for allowance. 17. What procedure should be done if pre- numbered charge sales invoices are accounted for to determine that sales are recognized? a. Observe and make inquiries about the use of pre-numbered documents and inspect evidence of the accounting for the sequence. b. Review the entity’s records on the customers’ accounts. Inspect on the trends in bad debts. c. Examine charge sales invoice. d. Inquire information on the process and conditions when a customer returns the product and/or asks for allowance. 18. What procedure should be done if procedures to ensure timely recording on sales and proper cut- off are established? a. Vouch recorded sales to supporting documents. b. For a sample of shipping documents selected from shipping records, trace each shipping document to a transaction recorded in the information system. c. Examine sales invoices recorded in the information system and examine shipping documents to determine they are recorded in the correct period. d. Review the entity’s records on the customers’ accounts. Inspect on the trends in bad debts. 19. What procedures should be done if sales returns and allowances are communicated between the selling department and the customer. Agreed terms are then carried out and then communicated to the accounting department? a. Inquire information on the process and conditions when a customer returns the product and/or asks for allowance. b. Vouch recorded sales to supporting documents. c. Obtain a copy of MOA. Inspect and understand the terms that have significant effects on the sales transaction cycle. d. Examine charge sales invoice. 20. Which of the following is not considered as a control risk? a. Cash sales include lack of control on safeguarding of cash receipts b. Collections not being recorded in the correct accounting period c. Lack of segregation of duties d. None of the above TRUE OR FALSE 1. Feedback is information given to a person, group, or system about their performance or behavior, with the goal of enabling them to make improvements or changes in their future actions or outcomes. TRUE 2. When a product can be sold twice to another costumer, the procedure needs to be done is to vouch recorded sales to supportingdocuments. FALSE - Observe procedures and inspect documents pertaining to deliveries. 3. Reporting is the continual checking, supervising, critically observing, or determining the status in order to identify change from the performance level required or expected. FALSE – Monitoring 4. Risk analysis is to develop an understanding of the risk in order to inform your decision or analysis of whether a response is required. TRUE 5. Reputation risk refers to a threat to a company’s profitability due to an unfavorable public perception of the company or its products/services. TRUE 6. The term “ethical risk” is borrowed from the military, and it refers to the conditions on a battlefield. It differs from strategic risk in that a strategy is a plan for the future, whereas tactical risk occurs in real-time as the events unfold. FALSE - tactical 7. Inherent risk is the risk that an auditor cannot detect the material misstatements in the reported amounts of revenue and cash and bank balances arising from wrongly recording Cash Sales. FALSE – Detection risk 8. Cash sales include lack of control on safeguarding of cash receipts is an example of risk under control risk. TRUE 9. Consumer rights is the set of rules which is commonly written for employees of a company, which protects the business and informs the employees of the company's expectations. FALSE – Organization code/ Company code 10. Sales Productivity is a metric based on sales volume, payroll expenses, personnel activity level, and others, indicating a sales unit’s efficiency at closing sales and generating revenue. TRUE 11. Sales enablement is the process of providing sales teams with the tools, training, and resources they need to buy effectively. FALSE - sell 12. KPI stands for Key Product Indicators. FALSE – Performance 13. Budgeting involves determining the financial resources required to achieve the sales goals and allocating those resources to various aspects of the sales plan. TRUE 14. Sales budget is when a potential customer or prospect reaches out to your business to ask about a product or service. FALSE – Inbound sale 15. Controlling and evaluating in sales refer to the processes of monitoring and assessing the effectiveness and efficiency of sales activities and strategies. TRUE MULTIPLE CHOICE QUESTIONS 1. Which of the following is NOT a control objective for sales management? A.) To ensure that adequate and appropriately trained sales staff are provided. B.) To ensure that workable sales territories are established and suitably staffed. C.) To ensure that order data is accurately captured and subsequently processed. D.) To ensure that the performance of the sales function is subject to ongoing monitoring and that any shortcomings are satisfactorily addressed. 2. Which of the following is a control objective for sales management? A.) To ensure that the organization’s marketing and performance objectives are met. B.) To ensure that significant fluctuations in margins, sales volumes and revenue generation are accurately reported to management. C.) To ensure that sales staff expenses, commissions, bonuses, etc. are valid, correctly calculated and authorized. D.) To ensure that the sales function operating costs are justified in relation to performance achievements. 3. Which of the following is NOT a key point for goal setting in sales management? A.) How best to organize, target, and utilize the sales force. B.) Achieving desired sales levels. C.) Contain the costs of seeking out suitable and stable customers. D.) All of the above are key points in goal setting in sales management. 4. Which of the following is a risk and control issue in sales management? A.) Allocation of sales staffs’ workload B.) Authorization and implementation of pricing and discount policies. C.) Management’s justification of the use of distributor arrangements. D.) Steps taken to ensure that customer requirements are identified and addressed. 5. Which of the following is NOT a risk and control issue in sales management? A.) Measures applied to ensure that customers are financially stable. B.) Mechanisms that prevent expenditure on unauthorized advertising and promotional schemes. C.) Determination of individual customer credit limits. D.) Engagement of sales staff in following up delinquent accounts and resolving customer complaints 6. The following are purpose of supervision and control, except A.) Training B.) Compensation C.) Evaluation D.) Telecommunication 7. The following are sales force controlling methods, except A.) Establishing sales territories B.) Allocating of sales quota C.) Attainment of objectives D.) Determining authorities and rights of sales me 8. A system that is essential to both, company and salesmen A.) Sales Report B.) Compensation plan C.) Expense Account D.) Suitable Controlling System 9. This includes verifying sales force performance and taking corrective action A.) Sales Report B.) Sales Analysis C.) Compensation D.) Sales Force Control 10. Indicate how much money was spent by sales people on traveling, lodging, meals, entertainment, as compared to the company policies on various expenses A.) Sales Report B.) Compensation plan C.) Expense Account D.) Suitable Controlling System 11. Which of the following stages is the most time- consuming as it is about determining your ideal customer? A.) Close the deal. B.) Find leads. C.) Connect with leads. D.) Follow up with the customer. 12. In this stage, it uses Customer Relationship Management (CRM) software to track, manage, and streamline leads across the team. A.) Find leads. B.) Connect with leads. C.) Research your leads. D.) Connect with leads. 13. A set of steps that companies use to determine how to implement a strategic plan within company activities to achieve one or more sales implementation objectives. A.) Sales Implementation B.) Sales Force Capability C.) Product Focus D.) Customer Focus 14. objectives target your team’s capability, tools, and resources to cover the market. A.) Sales Force Capability B.) Customer Focus C.) Product Focus D.) Market Coverage 15. Customer Focus objectives explore your team’s to partners and clients. A.) Capability, tools, and resources B.) Effectiveness C.) Attract, boost, and retain D.) Effectiveness of your indirect agents in selling products 16. It focuses on the activities and performance of a company's sales. A.) Inventory Audit B.) Sales Audit C.) Substantive Testing D.) Strategies 17. The following are the sales audit procedures, except: A.) Report B.) Office Environment C.) Customer Service D.) Change Management 18. Which of the following is/are entitled to conduct an audit with the sales operation of a company? A.) Investors and Lenders B.) Management C.) Neither of the two D.) Either of the two 19. Who conducts sales audit? A.) Internal auditors 15. Compliance audits can ensure that all vehicles maintain current emissions tests, for example, and that accounting records comply with the: a. Government b. GAAP c. GAAS d. BOA 16. Types of transportation are as follows except: a. Marine Transportation b. Air Transportation c. Intermodal Transportation d. River Transportation 17. It is a process where you group different items by their value. This allows you to store and audit only the particular groups you want. a. Cutoff analysis b. ABC inventory analysis c. Freight cost analysis d. Overhead analysis 18. This analysis evaluates the amount you spend on shipping costs and the lead time (lead time definition) involved. a. Cutoff analysis b. ABC inventory analysis c. Freight cost analysis d. Finished Goods Analysis 19. With this analysis, you halt all operations at the time of the physical inventory count. This ensures there can be no mistakes of uncontrolled variables. a. Cutoff analysis b. ABC inventory analysis c. Freight cost analysis d. Finished Goods Analysis 20. This is the most common way to perform an inventory audit. a. Cutoff analysis b. ABC inventory analysis c. Inventory Cycle Count d. Physical Inventory Count TRUE OR FALSE (15 QUESTIONS) 1. Logistics is a subset of distribution, and its main goal is to ensure that goods are delivered as efficiently and cheaply as possible.  FALSE. Distribution is a subset of logistics, and its main goal is to ensure that goods are delivered as efficiently and cheaply as possible. 2. Processing orders workflow includes order placement, picking inventory, sorting, packing and shipping.TRUE 3. In the processing orders risks assessment and response phase, it is necessary to review order confirmations. TRUE 4. Order accuracy is the time it takes a shipped order to reach its destination.  FALSE. Shipping time is the time it takes a shipped order to reach its destination. 5. Packaging audit can potentially cover inefficiencies and areas of improvement that can have a significant impact on your business productivity (and potentially reduce costs too).  FALSE. It can potentially uncover inefficiencies. 6. A contamination can occur when an unwanted contaminant is present in a material, physical body, or the environment.  TRUE 7. Fire is a common warehouse risk, especially in areas prone to natural disasters .  FALSE. Flooding is a common warehouse risk. 8. Aside from damages from fire, flood, and the like, warehouse inventory can also be damaged from its time in the facility.  TRUE 9. Automated material handling equipment is used in reducing or replacing manual handling of materials when economically and technically feasible.  TRUE 10. Quarantine is the status of starting or packaging material, intermediate, bulk, or finished products isolated physically or by other effective means while waiting for a decision on their release.  TRUE 11. Handling is the activity of storing products at warehouses and logistics centers. Its role is to provide a steady supply of goods to the market to fill the temporal gap between producers and consumers.  FALSE. Storage plays an important role in maintaining quality at warehouses and logistics centers and value of products. 12. Aim is the ultimate reason for undertaking a project or program. The aim is the “higher-order objective” to which an intervention/initiative is intended to contribute.  FALSE. Goals express general program/intervention intentions and help guide the development of a program. 13. Transportation is defined as the movement of people, animals, and goods from one location to another.  TRUE 14. Businesses in the transportation industry provide specialized distribution services to stockholders, including inbound and outbound logistics.  FALSE. Clients Businesses provide services to] clients not to stockholders 15. Conducting an inventory audit requires accurate and current data from a variety of sources.  TRUE (MCQ) 1. Can happen in a distribution center or warehouse where pickers, sorters and packers work in sync toward order fulfillment, or it can be done by a single person or small group. a. ORDER PROCESSING b. PACKAGING c. MATERIALS HANDLING AND STORAGE d. MONITORING 2. Order processing workflow starts with a. PICKING THE ITEMS FROM INVENTORY AND SENDING THEM TO A SORTING AREA b. CONFIRMING THAT PRODUCTS ARE IN STOCK c. CAREFULLY PACKED d. LABELED AND SHIPPED TO THE CUSTOMER’S ADDRESS 3. Involve diverse operations such as hoisting tons of steel with a crane. a. TRANSPORTATION b. HANDLING MATERIALS AND STORAGE c. MONITORING d. WAREHOUSING 4. Which of the following are considered as critical processes in Handling Materials and Storage? I. FUTURE NEEDS II. DEAD SPACE III. OBSERVATION IV.INSPECTION a. I,II,IV b. I,II,II,IV c. I & II d. IV ONLY 5. The following are participants in transportation, except one: a. PUBLIC b. CONSIGNOR c. CONSIGNEE d. GOVERNMENT 6. This is one of the most important tools in transportation processes. a. EXECUTION b. SELECTION OF CARRIER c. ROUTE OPTIMIZATION d. PLANNING 7. This software processes a huge amount of data and has analytical tools and other software tools aimed at fleet management and transportation of goods. a. ERP b. SAP c. TMS d. JUANTAX 8. This risk happens when products mismatch with the package. a. STORAGE RISK b. ENVIRONMENTAL RISK c. TECHNICAL RISK d. COMMERCIAL RISK 9. It is a place where goods are kept. a. WAREHOUSE b. FACTORY c. GARAGE d. STORAGE ROOM 10. It is a warehouse process that collects products in a warehouse to fulfill customers orders. A. STORAGE B. PACKING C. PICKING D. PUT-AWAY 11. It is the movement of goods from the receiving dock to the most optimal warehouse storage location. A. STORAGE B. PACKING C. PICKING D. PUT-AWAY 12. It is the amount of time that elapses between the receipt of an order and start of production. A. ORDER PROCESSING TIME B. DELIVERY TIME C. LEAD TIME D. TRAVEL TIME 13. A continuous review of the degree to which a logistics activity is completed A. EVALUATION B. MONITORING C. MANAGING INVENTORY D. PROCESSING ORDER 14. The continuous measurement process of the quality of the output a logistics function or service provides to analyse progress towards meeting established objectives and goals. A. EVALUATION B. MONITORING C. MANAGING INVENTORY D. PROCESSING ORDER 15. The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean. A. PROCESSING ORDER B. MANAGING INVENTORY C. WAREHOUSING D. PACKAGING 16. The time between placing an order and receiving the goods or service. A. PROCESS TIME B. TURNAROUND TIME C. DELIVERY LEAD TIME D. CYCLE TIME 17. It is a process of ordering, storing, and using inventories. A. MANAGING INVENTORY B. WAREHOUSING C. PACKAGING D. MONITORING 18. Companies use this method in an effort to maintain the lowest stock levels possible before a refill. A. ABC ANALYSIS B. JUST-IN-TIME INVENTORY (JIT) C. FIFO/LIFO METHOD D. BULK SHIPMENT 19. It is the goods or materials a business intends to sell to customers for profit. A. INVENTORY B. CASH C. SERVICE D. RECEIVABLES 20. This method considers unpacked materials that suppliers load directly into ships or trucks. It involves buying, storing and shipping inventory in bulk. A. ABC ANALYSIS B. JUST-IN-TIME INVENTORY (JIT) C. FIFO/LIFO METHOD D. BULK SHIPMENT (MODIFIED TRUE OR FALSE) 1. Ensuring that materials are available when needed is an objective of handling materials and storage. (TRUE) 2. In five steps in Order Processing workflow, the 3rd step will be PACKING. (FALSE- SORTING) 3. Common Carrier refers to the company or person who provides transport services for a specified shipper on a long-term basis. (FALSE- CONTRACT CARRIER) 4. The main function of transportation is to deliver the goods or materials in a safe condition. (FALSE - TO CARRY THE PRODUCTS TO DIFFERENT MARKETS, WHICH MAY BE AT DIFFERENT GEOGRAPHICAL LOCATIONS.) 5. Storage risk happens when the safety/handling management of the entity is weak. (TRUE) 6. Estimated Time of Arrival is the interval needed for a shipment to be delivered once it has been picked up from the point of departure. (FALSE – TRANSIT TIME) 7. Travel time is maximized is one of the benefits of put-away. (FALSE. TRAVEL TIME IS MINIMIZED.) 8. Inbound activities bring supplies or materials into a business, while outbound activities deal with moving goods and products out of customers. (TRUE) 12. It is the process of storing physical inventory for sale or distribution. Warehouses are used by all different types of businesses that need to temporarily store products in bulk before either shipping them to other locations or individually to end consumers. a. Delivery b. Packaging c. Warehousing d. Monitoring 13. Which of the following is not a risk in handling materials and storage? a. Physical Damage b. Inventory management c. Theft and fraud d. Inventory inaccuracies 14. Which of the following errors in the forecast of consumption, supply plans, late reporting of serious changes in demand to those responsible, problems of cross-functional coordination, long supply cycles that prevent timely adjustment of purchase plans? a. Transportation risks b. Planning risks c. Storage risks d. Supplier interaction risk 15. In material handling equipment the auditor should; a. Review the maintenance and inspection schedule for equipment b. Evaluate the shipping and dispatch process for accuracy and completeness c. Evaluate the process for maintaining and updating inventory records d. Evaluate the inventory management system for accuracy and completeness 16. Warehousing can help to save the company's money in the long run by reducing the need for multiple storage locations. This can also save them on transportation costs as they will only need to ship products to one central location. a. Enhanced Storage b. Flexibility c. Organized d. Cost Saving 17. Which of the Logistical and distribution risks is failure and failure of vehicles and, as a result, possible delays in delivery of goods and increased probability of other risks? a. Commercial risk b. Safety and fire risks c. Technical risks d. Risks of theft 18. What is Physical distribution? a. The physical transfer of products from one business or entity or person to another. b. The physical transfer of products from one place or person to another. c. The physical transfer of products from one another. d. All of the above 19. What is the concern of material management? a. Inventory b. Materials c. Materials and inventory requirements. d. None of the above 20. Which of the following is the correct equation of Logistics? a. MATERIALS MANAGEMENT + SUPPLY CHAIN b. MATERIALS MANAGEMENT + DISTRIBUTION c. CUSTOMERS + MATERIALS MANAGEMENT d. DISTRIBUTION + CUSTOMERS Multiple Choice Questions: 1. What is the other term for Transportation Management? a.) TMS b.) Pipeline Inventory c.) Safety Stock d.) Perpetual Inventory 2. As mentioned in the presentation, which one of the benefits of Inventory Management? a.) Getting accurate stock details b.) Changing customer demand c.) Poor processes d.) Satisfies customer 3. It is a supply chain tool that helps reduce additional freight costs. a.) LIFO b.) FIFO c.) TMS (Transporation Management System) d.) Safety Stock 4. Using this method, you’ll unload items directly from a supplier truck to the delivery truck. Warehousing is essentially eliminated. a.) Just-In-Time Inventory (JIT) b.) Cross-docking c.) Minimum Order Quantity d.) Perpetual Inventory Management 5. It helps companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there’s always enough stock to fulfill customer orders and proper warning of a shortage. a.) Inventory Management b.) Transportation Management System (TMS) c.) FIFO d.) Supply Chain Management 6. Businesses use this formula to find the minimum amount of stock they should have before reordering, then manage their inventory accordingly. a.) LIFO b.) FIFO c.) Just-In-Time Inventory (JIT) d.) Reorder Point Formula 7. Which of the following statements is/are true about implementing Transportation Management Systems (TMS) in companies? a.) As companies can now ship products at a faster rate, it becomes easier for them to plan out the stocks in a better manner. This eventually minimizes the issues related to surplus stocks and can help businesses improve productivity. b.) Understanding stock trends means you see how much of and where you have something in stock so you’re better able to use the stock you have. This also allows you to keep less stock at each location (store, warehouse), as you can pull from anywhere to fulfill orders — all of this decreases costs tied up in inventory and decreases the amount of stock that goes unsold before it’s obsolete. c.) With proper inventory management, you spend money on inventory that sells, so cash is always moving through the business. d.) One element of developing loyal customers is ensuring they receive the items they want without waiting. 8. Which of the following best describes the challenges of Inventory Management? a.) Understanding stock trends means you see how much of and where you have something in stock so you’re better able to use the stock you have. This also allows you to keep less stock at each location (store, warehouse), as you’re able to pull from anywhere to fulfill orders — all of this decreases costs tied up in inventory and decreases the amount of stock that goes unsold before it’s obsolete. b.) With proper inventory management, you spend money on inventory that sells, so cash is always moving through the business. c.) One element of developing loyal customers is ensuring they receive the items they want without waiting. d.) Outdated or manual processes can make work error-prone and slow down operations. 9. This form of predictive analytics helps predict customer demand. a.) Bulk Shipments b.) Demand Forecasting c.) FIFO and LIFO d.) Lean Manufacturing 10. This formula shows exactly how much inventory a company should order to reduce holding and other costs. a.) Consignment b.) Dropshipping c.) Economic Order Quantity (EOQ) d.) Just-In-Time Inventory (JIT) 11. It involves the transportation, warehousing and packaging of products. a. Logistics b. Distribution c. Logistics and Distribution d. None of the above. 12. Who examine transportation costs and delivery method? a. Logistics Manager b. Logistics Analyst c. Production Manager d. Inventory Control Manager 13. The process of collecting a specified quantity of items from inventory to satisfy customer orders. a. Order placement b. Picking inventory c. Sorting d. Packing 14. The process of transporting orders to their final destination. a. Packing b. Picking inventory c. Sorting d. Shipping 15. This is when picked items are separated according to their destination. a. Picking inventory b. Order placement c. Sorting d. Packing 16. It is a type of order processing system where you can rely on handwritten files and manual labor. a. Traditional order processing system b. Modern order processing system c. Automated order processing system d. All of the above 17. It refers to the planning of transportation, warehouse management, inventory management and handling of goods within a warehouse. a. Logistics b. Distribution c. Logistics and Distribution d. None of the above. 18. It is the process of making goods available for consumers or other businesses as and when they are needed. a. Logistics b. Distribution c. Logistics and Distribution d. None of the above. 19. Factors where the items ordered in bulk are packed and handled differently than small orders. a. The nature of the products b. The number of items c. Productivity of workforce d. Shipping packaging 20. Picking strategies where each picker collects the necessary products for one order at a time. a. Piece picking b. Zone picking c. Batch picking d. Piece and zone picking True or False Questions: 1. Material handling has control over the protection, management, and storage of the product and material process throughout manufacturing, warehouse, and distribution. TRUE 2. Space includes the amount of space given or being kept available to the product and also includes the way it is stored which tells about the safety of the product and its condition too. TRUE 3. The main role of material handling is to deteriorate the efficiency by making the logistic system respond effectively and quickly as per the customer’s demand. FALSE (The main role of material handling is to improve the efficiency) 4. Manual handling is driven by humans that involve workers pushing, pulling, lifting, lowering, and carrying goods. TRUE 5. The distribution of goods and commodities is the initial output of a long and costly supply chain operation. FALSE (The distribution of goods and commodities is the final output) 6. The purpose of monitoring the actual distribution is to observe the process, to verify recipients are actually receiving planned entitlements, and to identify problems from the perspectives of both recipients and distribution staff. TRUE 7. Material handling is a complex process that can involve both human- and machine-led processes. TRUE 8. Automated equipment handling has no benefit of reducing the risk of human error. FALSE (Automated equipment handling has the benefit) 9. Logistics is the process of storing physical inventory for sale or distribution. FALSE – Warehousing. 10. Warehouse are used to store and distribute goods to multiple locations. FALSE - Distribution centers. 11. The benefit of controlled warehouse logistics is simple – increased revenue. TRUE 12. 3 Basic Functions of Warehousing are: Order Fulfillment, Asset Management, and Inventory Protection. FALSE – Order Fulfillment, Inventory Management, and Asset Protection. 13. There are 4 Benefits of Warehouse Logistics: Ensure accurate, real-time inventory counts, Decrease returns, Auto-replenish stock, and Maximize warehouse space. TRUE c. Accuracy and Reliability Risk d. Product Differentiation and Criteria Risk 13. If the Key Issue is “Has a planned approach to advertising and promotion been agreed, authorized and implemented?” then what is the Objective? a. To ensure that a planned approach to promotion and advertising is agreed, authorized and implemented. b. To ensure that advertising activity is of an appropriate type, sufficient in quantity, adequately targeted at the relevant market, represents value for money, and is monitored for effectiveness. c. To ensure that the organization pays for only confirmed advertising activities. d. To ensure that advertising and promotional budgets allocated to external agencies are authorized and confirmed as used for the defined purpose. 14. If the Key Issue is “How does management ensure that promotional activities are adequately defined, authorized, proficiently conducted and adequately resourced?” then what is the Objective? a. To ensure that a planned approach to promotion and advertising is agreed, authorized and implemented. b. To ensure that advertising activity is of an appropriate type, sufficient in quantity, adequately targeted at the relevant market, represents value for money, and is monitored for effectiveness. c. To ensure that the organization pays for only confirmed advertising activities. d. To ensure that advertising and promotional budgets allocated to external agencies are authorized and confirmed as used for the defined purpose. 15. If the Key Issue is “How does management verify that the organization is paying only for actual advertising and promotional activities?” then what is the Objective? a. To ensure that a planned approach to promotion and advertising is agreed, authorized and implemented. b. To ensure that advertising activity is of an appropriate type, sufficient in quantity, adequately targeted at the relevant market, represents value for money, and is monitored for effectiveness. c. To ensure that the organization pays for only confirmed advertising activities. d. To ensure that advertising and promotional budgets allocated to external agencies are authorized and confirmed as used for the defined purpose. 16. If the Key Issue is “Is the engagement of external advertising agencies, creative consultants and marketing companies subject to adequate assessment, justification and authorization?” then what is the Objective? a. To ensure that a planned approach to promotion and advertising is agreed, authorized and implemented. b. To ensure that advertising activity is of an appropriate type, sufficient in quantity, adequately targeted at the relevant market, represents value for money, and is monitored for effectiveness. c. To ensure that the organization pays for only confirmed advertising activities. d. To ensure that advertising and promotional budgets allocated to external agencies are authorized and confirmed as used for the defined purpose. 17. The following are example of a marketing objective, which one is not included? a. Increase return on marketing investment (ROMI) b. Increase customer lifetime value c. Increase customer acquisition cost d. Increase brand recognition 18. The following are example of a marketing KPIs, which one is not included? a. Sales qualified leads (SQLs) b. Marketing qualified leads (MQLs) c. Budget Variance d. New opportunities 19. The following are components of marketing audit, which one is not included? a. Permanent b. Systematic c. Comprehensive d. Independent 20. The following are types of marketing audit, which one is not included? a. Marketing Strategy Audit b. Marketing Forecast Audit c. Marketing Environment Audit d. Marketing Systems Audit True or False 1. Products solve problems. TRUE 2. There are few steps required to take a product from the early stages in the product development process. FALSE 3. One of the control objectives of product development is to ensure that all information about the organization’s product developments remains public. FALSE 4. Competitor insights are the type of marketing intelligence that can give companies information on how their products compare to their competition. TRUE 5. Social media audit enable brands to connect with their audience to build a brand, increase sales, drive traffic to a website and build a community of followers to share and engage with content. FALSE – Social media marketing 6. External records are information that only a company's employees can access. FALSE - Internal records 7. Market research is unable to provide information on how target clients and customers view the organization. FALSE - Market research can tell about how the company is perceived by the target customers and target clients. 8. To ensure that the organization is kept informed about competitor products and activities is one of the control objectives for Market Research. TRUE 9. To control complaints and market test risk, new and prototype products/services are unrealistically market tested prior to full launch, and how are the results utilized. FALSE - should be realistically market tested. 10. The expenditure of promotional budgets is accurately accounted for and reflected in the accounts are justified, authorized and subject to a written agreement which defines the fees payable and the type and level of service(s) to be provided in exchange TRUE 11. .A mechanisms prevent expenditure on unauthorized advertising and promotional schemes were ensure that promotional literature is accurate, lawful and that insufficient supplies have been obtained. FALSE 12. .The precautions that prevent unauthorized access to or leakage of advertising and promotional plans are ensuring that the advertising and promotional plans and strategy are kept confidential and are protected from unauthorized access. TRUE 13. A marketing audit is a systematic, objective review of an organization’s marketing function to verify marketing systems are accurate, relevant, reliable, and aligned with defined processes and best practices. – TRUE 14. A marketing audit is best conducted by an internal segment of a company who is a member of the organization. This eliminates any inherent biases and often results in the most constructive audit of the organization. – FALSE – External Party 15. A marketing analysis defines the difference between what we have and what we need. A marketing analysis is often part of a larger assessment along with additional analysis, evaluation, and recommendations. . – FALSE – Gap Analysis