SAP Post Test 2

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Questions and Answers
  • 1. 

    Which of the following are key organizational data relevant to the production process? (2 Correct answers)

    • A.

      Purchasing Organization

    • B.

      Credit control area

    • C.

      Work center

    • D.

      Storage location

    • E.

      Plant

    • F.

      Bill of material

    Correct Answer(s)
    D. Storage location
    E. Plant
    Explanation
    The key organizational data relevant to the production process are the storage location and the plant. The storage location refers to the specific physical location where materials are stored within a plant. This information is crucial for efficient material handling and inventory management during the production process. The plant represents a specific manufacturing facility or location where production activities take place. It is important to have accurate plant data to ensure proper allocation of resources and coordination of production activities.

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  • 2. 

    Master data relevant to the production process are (3 Correct answers)

    • A.

      Work centers

    • B.

      Material master

    • C.

      Bills of material

    • D.

      Client

    • E.

      Company code

    • F.

      Production order

    Correct Answer(s)
    A. Work centers
    B. Material master
    C. Bills of material
    Explanation
    The master data relevant to the production process are work centers, material master, and bills of material. Work centers are physical locations where production activities take place. Material master contains information about the materials used in production, such as their description, quantity, and storage location. Bills of material are lists of components required to produce a finished product. These master data elements are essential for planning and executing the production process efficiently and accurately.

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  • 3. 

    A planned order is a formal request that indicates (3 Correct answers)

    • A.

      How many units of a material are needed

    • B.

      Where the finished goods are to be shipped

    • C.

      What materials are needed

    • D.

      Where the raw materials are stored

    • E.

      When the materials are needed

    Correct Answer(s)
    A. How many units of a material are needed
    C. What materials are needed
    E. When the materials are needed
    Explanation
    A planned order is a formal request that indicates how many units of a material are needed, what materials are needed, and when the materials are needed. It does not indicate where the finished goods are to be shipped or where the raw materials are stored.

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  • 4. 

    Which are the following are options when a production manager receives a planned order? (3 Correct answers)

    • A.

      Create an alternate planned order

    • B.

      Reject the planned order

    • C.

      Combine the planned order with other orders

    • D.

      Authorize the production

    • E.

      Return the order to purchasing

    • F.

      Create a sales order

    Correct Answer(s)
    B. Reject the planned order
    C. Combine the planned order with other orders
    D. Authorize the production
    Explanation
    When a production manager receives a planned order, they have several options. They can reject the planned order if it is not feasible or does not align with their production schedule. They can also choose to combine the planned order with other orders to optimize production efficiency. Additionally, they can authorize the production to proceed based on the planned order. These three options provide the production manager with flexibility and control over the production process.

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  • 5. 

    Which of the following does a routing identify in a production order? (2 Correct answers)

    • A.

      The materials or components to be used in production

    • B.

      The location where operations are to be performed

    • C.

      The capacity requirements of the production order

    • D.

      The location of raw materials in the warehouse

    • E.

      The operations needed to produce a material

    Correct Answer(s)
    B. The location where operations are to be performed
    D. The location of raw materials in the warehouse
    Explanation
    A routing in a production order identifies the location where operations are to be performed and the location of raw materials in the warehouse. This means that the routing specifies the specific work centers or machines where each operation will take place, as well as the sequence in which they should be performed. Additionally, the routing also includes information about the availability and location of the necessary raw materials in the warehouse for the production order.

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  • 6. 

    Which one of the following best describes a work center?

    • A.

      A location where materials are placed right before they are shipped

    • B.

      Another term used to describe an office building

    • C.

      A location where value-added work needed to produce a material is A location where value-added work needed to produce a material is A location where value-added work needed to produce a material is carried out

    • D.

      A shipping dock

    • E.

      A storage shelf in a warehouse

    Correct Answer
    C. A location where value-added work needed to produce a material is A location where value-added work needed to produce a material is A location where value-added work needed to produce a material is carried out
    Explanation
    A work center is a location where value-added work needed to produce a material is carried out. It is a specific area or station within a facility where tasks and operations are performed to transform raw materials or components into finished products. This includes activities such as assembly, machining, testing, and quality control. The work center is essential in the production process as it ensures that the necessary value-added work is completed efficiently and effectively.

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  • 7. 

    Which of the following identifies the list of materials needed to produce one or more units of a finished good?

    • A.

      Routing

    • B.

      Source materials

    • C.

      Component listing

    • D.

      Bill of components

    • E.

      Bill of materials

    Correct Answer
    E. Bill of materials
    Explanation
    The bill of materials is a comprehensive list of all the materials, components, and sub-assemblies required to produce one or more units of a finished good. It provides detailed information about the quantity, description, and specifications of each item needed in the production process. The bill of materials is essential for planning, procurement, and inventory management, as it ensures that all necessary materials are available and accounted for to meet production requirements.

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  • 8. 

    If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?

    • A.

      Need to increase inventory

    • B.

      Customer order

    • C.

      Request for quotation

    • D.

      Customer inquiry

    • E.

      Billing document

    Correct Answer
    A. Need to increase inventory
    Explanation
    The trigger for the production of goods in a company that has adopted the make-to-stock strategy is the need to increase inventory. This means that the company produces goods in anticipation of future demand, rather than in response to specific customer orders or inquiries. By increasing inventory, the company ensures that it has enough stock on hand to meet customer demand and minimize lead times. This strategy is commonly used in industries where demand is relatively stable and predictable.

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  • 9. 

    Which of the following is NOT an outcome of a goods issue to a production order?

    • A.

      The material master is updated to reflect the reduction in the quantity and value of the materials issued

    • B.

      Actual costs associated with material consumption are calculated

    • C.

      Material reservations are updated

    • D.

      A goods receipt is automatically recorded

    • E.

      An FI document is created to record financial accounting data

    Correct Answer
    D. A goods receipt is automatically recorded
  • 10. 

    Component assignment is a technique that assigns components in a BOM either to a routing or to a specific operation within the routing.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Component assignment is a technique used in Bill of Materials (BOM) management where components are assigned to a routing or a specific operation within the routing. This helps in organizing and tracking the components required for the manufacturing process. By assigning components to the appropriate operation, it ensures that the right components are used at the right stage of production, improving efficiency and accuracy. Therefore, the statement "Component assignment is a technique that assigns components in a BOM either to a routing or to a specific operation within the routing" is true.

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  • 11. 

    Which of the following occur when a goods receipt is posted for raw materials on a consignment basis? (2 correct answers)

    • A.

      The status of the materials is set to consignment stock.

    • B.

      The inventory account is impacted

    • C.

      The quantity of materials in inventory is increased

    • D.

      The quantity of materials in inventory is decreased.

    • E.

      The vendor's account is impacted

    Correct Answer(s)
    A. The status of the materials is set to consignment stock.
    C. The quantity of materials in inventory is increased
    Explanation
    When a goods receipt is posted for raw materials on a consignment basis, the status of the materials is set to consignment stock. This means that the materials are not considered as part of the regular inventory, but rather as goods held on behalf of the vendor. Additionally, the quantity of materials in inventory is increased as the materials are physically received and added to the stock.

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  • 12. 

    For which of the following scenarios can storage location-to-storage location transfer be applied? (2 correct answers)

    • A.

      Materials are wrongly delivered to one plant and need to be relocated to another plant

    • B.

      Materials are transferred from a temporary storage location in one plant to a permanent storage location in another plant

    • C.

      Materials are moved via a stock transfer between plants in different company codes

    • D.

      Materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant

    • E.

      Materials received from a vendor are initially placed in a storage location for quality inspection to be performed before being placed in permanent location

    Correct Answer(s)
    D. Materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant
    E. Materials received from a vendor are initially placed in a storage location for quality inspection to be performed before being placed in permanent location
    Explanation
    Storage location-to-storage location transfer can be applied in the scenario where materials are initially stored in a temporary staging area and are subsequently moved to a permanent location within the same plant. It can also be applied when materials received from a vendor are initially placed in a storage location for quality inspection before being placed in a permanent location. In both cases, the materials are being transferred from one storage location to another within the same plant.

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  • 13. 

    Which of the following statements apply to stock transport orders? (3 correct answers)

    • A.

      Goods can be received into quality inspection or blocked stock statuses.

    • B.

      Goods received can be posted to consumption accounts rather than material accounts

    • C.

      Purchase requisitions can be converted to purchase orders.

    • D.

      No history is available to track the tasks associated with STOs.

    • E.

      An availability check can be executed to assess material availability in the supplying plant.

    Correct Answer(s)
    A. Goods can be received into quality inspection or blocked stock statuses.
    B. Goods received can be posted to consumption accounts rather than material accounts
    E. An availability check can be executed to assess material availability in the supplying plant.
    Explanation
    Stock transport orders allow goods to be received into quality inspection or blocked stock statuses, as well as allowing goods received to be posted to consumption accounts instead of material accounts. Additionally, an availability check can be executed to assess material availability in the supplying plant. These features make stock transport orders flexible and useful for managing the movement of goods between different locations within a company.

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  • 14. 

    Which of the following are rules that apply when linking warehouses to storage locations? (3 correct answers)

    • A.

      A warehouse cannot be linked to storage locations across multiple plants.

    • B.

      A warehouse must be linked to at least one storage location.

    • C.

      Not all storage locations in a plant must be linked to a warehouse.

    • D.

      A storage location can be linked to one or many warehouses.

    • E.

      A warehouse can be linked to storage locations across multiple plants.

    Correct Answer(s)
    A. A warehouse cannot be linked to storage locations across multiple plants.
    B. A warehouse must be linked to at least one storage location.
    E. A warehouse can be linked to storage locations across multiple plants.
    Explanation
    A warehouse cannot be linked to storage locations across multiple plants because it is not allowed to have storage locations in different plants associated with the same warehouse. A warehouse must be linked to at least one storage location to ensure that there is a designated space for storing goods. Not all storage locations in a plant must be linked to a warehouse, meaning that some storage locations may not have a direct association with a specific warehouse. A storage location can be linked to one or many warehouses, indicating that a single storage location can be used to store goods for multiple warehouses. Finally, a warehouse can be linked to storage locations across multiple plants, allowing for the distribution of goods across different locations.

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  • 15. 

    Which of the following are warehouse management steps related to the production process? (2 correct answers)

    • A.

      Create invoice

    • B.

      Goods issue

    • C.

      Create outbound delivery

    • D.

      Create transfer order

    • E.

      Create transfer requirement

    Correct Answer(s)
    D. Create transfer order
    E. Create transfer requirement
    Explanation
    The correct answers are "Create transfer order" and "Create transfer requirement". These steps are related to the production process in warehouse management. Creating a transfer order involves moving materials from one location to another within the warehouse, while creating a transfer requirement is the initial step in the process, where the system identifies the need to transfer materials. These steps are essential for managing the movement of goods during the production process in a warehouse.

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  • 16. 

    In plant-to-plant transfer, an FI document

    • A.

      Is created in both one-step and two-step movements.

    • B.

      Is created in two-step movements only.

    • C.

      Is created in one-step movements only.

    • D.

      Is not created.

    Correct Answer
    A. Is created in both one-step and two-step movements.
    Explanation
    In plant-to-plant transfer, an FI document is created in both one-step and two-step movements. This means that when transferring materials from one plant to another within the same company code, an FI document is generated regardless of whether the transfer is done in a single step or multiple steps. The FI document helps in tracking the financial impact of the transfer and ensures proper accounting for the movement of materials between plants.

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  • 17. 

    Which of the following represents the document used to plan the movement of materials into and out of bins in a warehouse?

    • A.

      Transfer list

    • B.

      Transfer request

    • C.

      Transfer plan

    • D.

      Transfer order

    • E.

      Transfer requirement

    Correct Answer
    E. Transfer requirement
    Explanation
    A transfer requirement is a document used to plan the movement of materials into and out of bins in a warehouse. It specifies the quantity and type of materials that need to be transferred, as well as the source and destination bins. This document helps in organizing and tracking the movement of materials within the warehouse, ensuring that the right materials are available in the right place at the right time.

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  • 18. 

    In warehouse management steps associated with the procurement process, the warehouse inventory is calculated as sum of the inventory in the following places:

    • A.

      Storage sections and storage areas

    • B.

      Warehouse bins and storage sections

    • C.

      Interim storage areas and warehouse bins

    • D.

      Storage locations and storage sections

    • E.

      Storage locations and storage areas

    Correct Answer
    C. Interim storage areas and warehouse bins
    Explanation
    The correct answer is "Interim storage areas and warehouse bins". In warehouse management, the inventory is calculated by considering the inventory in both interim storage areas and warehouse bins. This means that the items stored in these specific places contribute to the overall inventory count. The other options mentioned in the question, such as storage sections, storage areas, and storage locations, may also be part of the warehouse inventory, but the specific combination of interim storage areas and warehouse bins is the correct answer in this case.

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  • 19. 

    Material planning is concerned with answering which basic questions? (3 correct answers)

    • A.

      Which planning version should the company choose?

    • B.

      What materials are required?

    • C.

      What is the shortest time required for completing the planning?

    • D.

      When are the materials required?

    • E.

      How many materials are required?

    Correct Answer(s)
    B. What materials are required?
    D. When are the materials required?
    E. How many materials are required?
    Explanation
    Material planning is concerned with answering the questions of what materials are required, when the materials are required, and how many materials are required. These questions are essential for effective planning and ensuring that the necessary materials are available at the right time and in the right quantities. By answering these questions, companies can optimize their production processes, minimize delays, and avoid stockouts or excess inventory.

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  • 20. 

    The proposals that material planning generates typically are in the form of: (2 correct answers)

    • A.

      A planning proposal.

    • B.

      Planned orders.

    • C.

      A material order list.

    • D.

      Purchase requisitions.

    • E.

      Purchase list.

    Correct Answer(s)
    B. Planned orders.
    D. Purchase requisitions.
    Explanation
    Material planning is a process that involves generating proposals for the procurement and management of materials. These proposals usually take the form of planned orders, which are requests for materials to be produced or purchased, and purchase requisitions, which are requests for materials to be procured from external suppliers. Therefore, the correct answers for this question are "Planned orders" and "Purchase requisitions".

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  • 21. 

    Which of the following are master data relevant to material planning? (2 correct answers)

    • A.

      Storage location

    • B.

      Bills of material

    • C.

      Material master

    • D.

      Planning version

    • E.

      Production version

    Correct Answer(s)
    B. Bills of material
    C. Material master
    Explanation
    Bills of material and Material master are both master data relevant to material planning. Bills of material provide information about the components required to produce a finished product, while the Material master contains detailed information about a specific material, such as its description, characteristics, and procurement details. Both of these master data are crucial for effective material planning as they help in determining the availability and requirements of materials for production.

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  • 22. 

    Which of the following statements concerning the outcome of the material planning process are NOT TRUE? (3 correct answers)

    • A.

      The outcome can be multiple procurement proposals.

    • B.

      The outcome is always a single procurement proposal.

    • C.

      The outcome triggers the sales and operations planning step.

    • D.

      The outcome triggers the forecasting planning step.

    • E.

      The outcome can trigger either the production or the procurement process.

    Correct Answer(s)
    B. The outcome is always a single procurement proposal.
    C. The outcome triggers the sales and operations planning step.
    D. The outcome triggers the forecasting planning step.
    Explanation
    The material planning process can have multiple procurement proposals as its outcome, which contradicts the statement that the outcome is always a single procurement proposal. Additionally, the outcome of the material planning process can trigger either the production or the procurement process, which contradicts the statement that the outcome is always a single procurement proposal. Lastly, the outcome of the material planning process does not necessarily trigger the sales and operations planning step or the forecasting planning step, which contradicts the statements that the outcome triggers the sales and operations planning step and the outcome triggers the forecasting planning step.

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  • 23. 

    Which of the following statements regarding a BOM are TRUE? (3 correct answers)

    • A.

      A BOM identifies the components needed to make the material.

    • B.

      A BOM identifies the sequence of operations needed to make the materials.

    • C.

      A BOM component can have its own BOM.

    • D.

      A BOM identifies the material's routing strategy.

    • E.

      A BOM is plant specific.

    Correct Answer(s)
    A. A BOM identifies the components needed to make the material.
    C. A BOM component can have its own BOM.
    E. A BOM is plant specific.
    Explanation
    A BOM (Bill of Materials) is a comprehensive list of all the components needed to make a material. It includes all the necessary parts, quantities, and specifications required for production. Additionally, a BOM component can have its own BOM, meaning that a subassembly or part within the main material may have its own separate list of components. Finally, a BOM is plant specific, meaning that it is tailored to a specific manufacturing facility or location.

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  • 24. 

    Requirements in the material planning process specify

    • A.

      The master data requirements.

    • B.

      How the material planning should be executed.

    • C.

      The work center capacity.

    • D.

      Requirements for the different modes of transportation.

    • E.

      How many of the materials are needed and when they are needed.

    Correct Answer
    E. How many of the materials are needed and when they are needed.
    Explanation
    The correct answer is "How many of the materials are needed and when they are needed." In the material planning process, one of the key requirements is to determine the quantity of materials that will be needed and the timing of when they will be needed. This information is crucial for effective production and inventory management, as it helps in ensuring that the right amount of materials is available at the right time to meet production demands. By accurately forecasting the material requirements, companies can optimize their production schedules, minimize stockouts, and avoid excess inventory.

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  • 25. 

    The master data elements in material planning are:

    • A.

      Material masters, product types, storage location, vendors.

    • B.

      Product routings, bills of material, material master, product groups.

    • C.

      Product types, product routings, material masters, product groups.

    • D.

      Product routings, product types, material masters, customers.

    • E.

      Material masters, storage location, product groups, product routings.

    Correct Answer
    B. Product routings, bills of material, material master, product groups.
    Explanation
    The correct answer is Product routings, bills of material, material master, product groups. These are the master data elements in material planning. Product routings define the sequence of operations required to produce a product. Bills of material list the components and quantities needed to produce a product. Material master contains all the information about a specific material, such as its description, unit of measure, and stock availability. Product groups are used to classify materials based on their characteristics.

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  • 26. 

    Which of the following statements about consumption-based planning is TRUE?

    • A.

      Planning is based on historical data.

    • B.

      Planning is based on exploding the BOM.

    • C.

      Dependent demand is derived from independent demand.

    • D.

      It is used for high-value materials

    Correct Answer
    A. Planning is based on historical data.
    Explanation
    Consumption-based planning is a method of planning that relies on historical data to determine future demand. Instead of using forecasts or sales orders, this approach looks at past consumption patterns to estimate the amount of materials needed. By analyzing historical data, such as sales history or production history, companies can make more accurate predictions about future demand and plan their inventory accordingly. This method is especially useful for items with stable and predictable demand patterns, as it allows for better inventory control and reduces the risk of stockouts or excess inventory.

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  • 27. 

    Given the information below, calculate disaggregated quantities for touring bikes (TOUR) and off-road bikes (ORBK). Total production = 100 TOUR proportion factor = 35 ORBK proportion factor = 65

    • A.

      TOUR = 35, ORBK = 65

    • B.

      TOUR = 65, ORBK = 35

    • C.

      TOUR = 0, ORBK = 65

    • D.

      TOUR = 35, ORBK = 0

    • E.

      TOUR = 50, ORBK = 50

    Correct Answer
    A. TOUR = 35, ORBK = 65
    Explanation
    The correct answer is TOUR = 35, ORBK = 65. This is because the given information states that the proportion factor for touring bikes is 35 and the proportion factor for off-road bikes is 65. Since the total production is 100, we can calculate the disaggregated quantities by multiplying the proportion factor by the total production. Therefore, 35% of 100 is equal to 35 for touring bikes and 65% of 100 is equal to 65 for off-road bikes.

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  • 28. 

    MRP data in the material master is defined at the plant level.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The MRP (Material Requirements Planning) data in the material master refers to the information related to the planning and procurement of a specific material. This data includes details such as lead time, safety stock, reorder point, and lot size. The material master is a central repository that stores all the information about a material, and this data is defined at various levels, including the plant level. Therefore, the statement that MRP data in the material master is defined at the plant level is true.

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  • 29. 

    Which of the following statements about the integrated process are TRUE? (3 correct answers)

    • A.

      The process is triggered by a customer order

    • B.

      The fulfillment process is suspended when the needed raw materials are not available

    • C.

      The production process is suspended when the needed raw materials are not available

    • D.

      The production process continues when the finished products become available

    • E.

      The fulfillment process continues when the finished products become available

    Correct Answer(s)
    A. The process is triggered by a customer order
    C. The production process is suspended when the needed raw materials are not available
    E. The fulfillment process continues when the finished products become available
    Explanation
    The integrated process is triggered by a customer order, as stated in the answer. This means that the process begins when a customer places an order. The production process is suspended when the needed raw materials are not available, which suggests that production cannot continue without the necessary materials. Finally, the fulfillment process continues when the finished products become available, indicating that the process of fulfilling the customer's order can proceed once the products are ready.

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  • 30. 

    Which of the following are steps in the warehouse management process? (2 correct answers)

    • A.

      Create goods receipt

    • B.

      Create transfer order

    • C.

      Create stock transfer order

    • D.

      Confirm transfer order

    • E.

      Post goods issue

    Correct Answer(s)
    B. Create transfer order
    D. Confirm transfer order
    Explanation
    The steps in the warehouse management process include creating a transfer order and confirming the transfer order. Creating a transfer order involves initiating the movement of goods from one location to another within the warehouse. Confirming the transfer order ensures that the goods have been successfully transferred and updates the inventory records accordingly. The other options listed, such as creating a goods receipt, creating a stock transfer order, and posting a goods issue, are not part of the specific steps mentioned in the question.

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  • 31. 

    In which of the following processes is a transfer order (TO) created?

    • A.

      Warehouse management

    • B.

      Fulfillment

    • C.

      Inventory management

    • D.

      Production

    • E.

      Procurement

    Correct Answer
    A. Warehouse management
    Explanation
    In the process of Warehouse management, a transfer order (TO) is created. This involves the movement of goods or materials from one location to another within a warehouse. The creation of a transfer order helps in ensuring that the correct items are picked, packed, and shipped to the designated location. It also helps in maintaining accurate inventory levels and tracking the movement of goods within the warehouse.

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  • 32. 

    Due to a shortfall of materials needed to fill a customer order, a company has decided to acquire the materials from another plant. What is the likely next step?

    • A.

      Create an stock transport order

    • B.

      Create a purchase order

    • C.

      Create a sales order

    • D.

      Initiate shipping to customer

    • E.

      Post a goods receipt

    • F.

      Create a delivery document

    Correct Answer
    A. Create an stock transport order
    Explanation
    When a company faces a shortfall of materials needed to fill a customer order, the likely next step would be to create a stock transport order. This is because a stock transport order allows the company to transfer the materials from another plant within their own organization. By creating a stock transport order, the company can ensure that the materials are acquired and delivered to the customer in a timely manner, without the need to involve external suppliers or initiate shipping directly to the customer.

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  • 33. 

    Identify the step in the procurement process for which a material document is created.

    • A.

      Goods issue

    • B.

      Goods receipt

    • C.

      Create transfer order

    • D.

      Create stock transport order

    • E.

      Create requisition

    Correct Answer
    B. Goods receipt
    Explanation
    The step in the procurement process for which a material document is created is the goods receipt. This document is created when the goods ordered are received and checked for quality and quantity. It serves as a record of the receipt of goods and is important for inventory management and accounting purposes.

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  • 34. 

    In a plant-to-plant stock transfer, valuation occurs at

    • A.

      Goods issue and at the valuation price of the issuing plant

    • B.

      Goods receipt and at the valuation price of the issuing plant

    • C.

      Goods issue and at the valuation price of the receiving plant

    • D.

      Goods receipt and at the average price of the receiving plant

    • E.

      Goods issue and at the average price of the receiving plant

    Correct Answer
    A. Goods issue and at the valuation price of the issuing plant
    Explanation
    In a plant-to-plant stock transfer, valuation occurs at the goods issue and at the valuation price of the issuing plant. This means that the value of the stock being transferred is determined based on the valuation price set for the issuing plant. The valuation price is the price at which the issuing plant values its inventory. Therefore, when the goods are issued from the issuing plant, the value of the stock being transferred is calculated based on this valuation price.

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  • 35. 

    Calculate the financial impact of a goods issue posting based on the following data. Procurement type: Internal Materials: Pens Quantity shipped: 100 Valuation price at the receiving plant (for one pen): $2.30 Valuation price at the sending plant (for one pen): $2.40

    • A.

      Debit GR/IR, credit inventory for $230.00

    • B.

      Debit inventory, credit COGS for $240.00

    • C.

      Debit inventory, credit GR/IR for $230.00

    • D.

      Debit and credit to the inventory account for $240.00

    • E.

      No financial effect takes place at this step, so no FI document is created

    Correct Answer
    D. Debit and credit to the inventory account for $240.00
  • 36. 

    What is the general ledger impact when a transfer requirement is created in the warehouse management process?

    • A.

      Debit GR/IR, credit inventory

    • B.

      Debit inventory, credit COGS

    • C.

      Debit inventory, credit GR/IR

    • D.

      Debit and credit to the inventory account

    • E.

      There is no impact on the GL.

    Correct Answer
    E. There is no impact on the GL.
    Explanation
    When a transfer requirement is created in the warehouse management process, there is no impact on the general ledger (GL). This means that no accounts are debited or credited in the GL as a result of creating a transfer requirement.

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  • 37. 

    Calculate the debit and credit amount for the goods issue step in the fulfillment process, based on the following data. Materials sold (trading goods): Printers Quantities sold: 100 Price for customer: $120.00 Current average moving price: $85.00 Price from vendor: $84.00 Average price 30 days before customer order was placed: $86.00

    • A.

      $12,000

    • B.

      $8,500

    • C.

      $8,400

    • D.

      $8,600

    • E.

      $0.00

    Correct Answer
    B. $8,500
    Explanation
    The correct answer is $8,500. This is calculated by multiplying the quantity sold (100) by the price for the customer ($120.00). This gives a total debit amount of $12,000. The credit amount is calculated by multiplying the quantity sold (100) by the current average moving price ($85.00). This gives a total credit amount of $8,500.

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  • 38. 

    A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the moving average price (MAP) for t-shirts in Plant B after goods issue? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, moving average price (MAP) 3.54 Plant B: Unrestricted: 500, moving average price (MAP) 3.75

    • A.

      $3.54

    • B.

      $3.75

    • C.

      $8.23

    • D.

      $3.66

    • E.

      $3.60

    Correct Answer
    D. $3.66
    Explanation
    After the stock transfer of 400 t-shirts from Plant A to Plant B, the moving average price (MAP) for t-shirts in Plant B will be $3.66. This is because the moving average price is calculated by dividing the total value of the stock by the total quantity of the stock. Before the transfer, Plant B had 500 t-shirts with a MAP of $3.75. After the transfer, Plant B will have a total of 900 t-shirts (500 + 400) with a total value of $3300 (500 * $3.75 + 400 * $3.54). Dividing the total value by the total quantity gives us a MAP of $3.66.

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  • 39. 

    A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the MAP at Plant A after goods issue? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, MAP 3.54 Plant B: Unrestricted: 500, MAP 3.75

    • A.

      $3.54

    • B.

      $3.75

    • C.

      $8.23

    • D.

      $3.66

    • E.

      $3.60

    Correct Answer
    A. $3.54
    Explanation
    After the stock transfer of 400 t-shirts from Plant A to Plant B, the quantity of t-shirts in Plant A's unrestricted stock will decrease by 400. However, the MAP (Moving Average Price) at Plant A will remain the same at $3.54 because the transfer does not affect the price of the t-shirts. Therefore, the correct answer is $3.54.

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  • 40. 

    A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the value of inventory of t-shirts in Plant B after the goods issue? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, MAP 3.54 Plant B: Unrestricted: 500, MAP 3.75

    • A.

      $1,416

    • B.

      $1,875

    • C.

      $3,291

    • D.

      $10,620

    • E.

      $12,495

    Correct Answer
    C. $3,291
    Explanation
    After the stock transfer of 400 t-shirts from Plant A to Plant B, the inventory of t-shirts in Plant B will be calculated by adding the quantity of unrestricted t-shirts in Plant B before the goods issue (500) with the quantity of t-shirts transferred (400). The total quantity of t-shirts in Plant B after the goods issue will be 900. To calculate the value of the inventory, we multiply the total quantity of t-shirts (900) by the moving average price (MAP) of Plant B before the goods issue (3.75). Therefore, the value of the inventory of t-shirts in Plant B after the goods issue is $3,375.

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  • 41. 

    A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the change in value of inventory of t-shirts in the company code? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, MAP 3.54 Plant B: Unrestricted: 500, MAP 3.75

    • A.

      Increase by $1,416

    • B.

      Increase by $3,291

    • C.

      Decrease by $1,416

    • D.

      Decrease by $3,291

    • E.

      $0 (no change in value)

    Correct Answer
    E. $0 (no change in value)
  • 42. 

    A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the change in value of inventory of t-shirts in Plant B? Use the following data for this question. The data represents the status before goods issue. Plant A: Unrestricted: 3000, MAP 3.54 Plant B: Unrestricted: 500, MAP 3.75

    • A.

      Increase by $1,416

    • B.

      Increase by $3,291

    • C.

      Decrease by $1,416

    • D.

      Decrease by $3,291

    • E.

      $0 (no change in value)

    Correct Answer
    A. Increase by $1,416
    Explanation
    The value of inventory of t-shirts in Plant B will increase by $1,416. This can be calculated by multiplying the quantity of t-shirts being transferred (400) by the difference in the moving average price (MAP) between Plant A and Plant B (3.75 - 3.54 = 0.21), and rounding to the nearest whole number (400 * 0.21 ≈ 84). Therefore, the change in value of inventory in Plant B is an increase of $1,416.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 20, 2013
    Quiz Created by
    Jofarrell
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