CH 01

Chapter 2
Introduction to SAP ERP
True-False Questions
1. The architecture of an enterprise system refers to the technical structure of the software, how
users interact with the software, and how the software is physically managed on computer
hardware.
Answer: True Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:
2. The three layers of the “three-tier client-server architecture” are the presentation layer,
windows layer, and data layer.
Answer: False Difficulty: Medium Page Reference: 1

3. When you access the Internet, your browser is the presentation layer.

4. Scalability is the ability of the hardware and software to support a greater number of users
easily over time.
Answer: True Difficulty: Easy Page Reference: 2

5. Service-oriented architecture (SOA) is the fundamental concept behind systems connecting

through standardized interfaces called Web services.
Answer: True Difficulty: Difficult Page Reference: 2

6. Enterprise resource planning (ERP) focuses on the internal operations of an organization.

Section: Enterprise Planning Systems Practice:
7. Inter-company processes take place within a single company.

8. Customer relationship management (CRM) systems connect a company’s ERP system to its
accounting software system.
9. Supply chain management (SCM) systems help companies execute the processes of research,
design, and product management.

10. Application platforms serve as a type of "enterprise operating system" for a company’s ES
landscape by allowing all of the various systems to communicate seamlessly with one
another as well as with systems outside the company.

Section: Application Platforms Practice:
11. Current versions of the SAP business suite can’t run on SAP NetWeaver.
Answer: False Difficulty: Easy Page Reference: 6

12. SAP NetWeaver is the “operating system” for an entire company’s business processes.

13. Organizational data are used to represent the structure of an enterprise.

Section: Data in an Enterprise System – Organizational Data Practice:
14. A company code is the highest organizational level in SAP ERP.

15. A client represents each company within an enterprise.

16. Material master are organizational elements that performs multiple functions and is relevant
to several processes.

17. A building can house only a single plant.
Answer: False Difficulty: Difficult Page Reference: 8

18. A plant can be a factory, a warehouse, a regional distribution center, or a service center.

19. The material master is the most commonly used organizational data in an enterprise.

Section: Data in an Enterprise System – Master Data Practice:
20. The material master includes a large amount of data because it is used in numerous
processes.

Section: Data in an Enterprise System – Master Data Practice:
21. Materials are categorized into different material types based on the way they are used in the
firm’s operations.

Section: Material Types Practice:
22. The four most common material types are raw materials, semi‐finished goods, finished
goods, and exported goods.

23. Raw materials (ROH) are purchased from an external source ‐ a vendor‐ and used in the
production process.

24. Trading goods (HAWA) are resold to customers after they have been modified by the
company.

25. Transaction data reflect the consequences of executing process steps.

Section: Enterprise Systems – Transaction Data Practice:
26. The financial accounting documents, management accounting or controlling documents, and
material documents are all “virtual.”

Section: Enterprise Systems – Transaction Data Practice:
27. Reporting is a general term for the methods a user can utilize to update data in the ERP
system to execute process steps.

Section: Reporting Practice:
28. The online transaction processing (OLTP) system is designed to capture and store detailed
organizational data.

Section: Reporting Practice:
29. Work lists identify tasks that are scheduled to be completed in a process.

Section: Reporting – Work Lists Practice:
30. Information structures display lists of master data, such as materials, vendors, and purchasing
info records, and documents, such as transaction documents, FI, CO, and material documents
that are generated during the execution of a process.

Section: Reporting – Online Lists Practice:
Package Title: Test bank

Course Title: Introduction to Accounting
Question type: Multiple Choice
1. ____________ is concerned with recording the financial impacts of business processes as

they
are executed.
a. Management accounting
b. Financial accounting (Fl)
c. Controlling (CO)
d. Bank ledger accounting
e. None of the above
Answer: b
Difficulty: Medium
Section Reference: Learning Objectives
2. Which of the following is a key process in financial accounting?

a. Sales order processing
b. Accounts receivable accounting
c. Credit management
d. Income verification
e. All of the above
Answer: b
Difficulty: Easy
3. Which process is used to manage money owed by

customers for goods and services purchased from the company?
a. General ledger accounting

b. Accounts receivable accounting
c. Fixed asset accounting
d. Bank ledger accounting
e. All of the above
Answer: b
Difficulty: Medium
4. Which process is concerned with recording data associated with bank statements?
a. Bank ledger accounting

b. Fixed asset accounting
c. General ledger accounting
d. Accounts receivable accounting
Answer: a
Difficulty: Easy
5. ____________ are internal divisions of an enterprise that are used to define areas of
responsibility or to meet the external reporting requirements of an enterprise segment.
a. Cost centers
b. Depreciation areas
c. Business areas
d. Sub-ledgers
Answer: c
Difficulty: Medium
Section Reference: Organizational Data
6. Which term refers to an ordered listing of accounts that comprise a company’s general
ledger?
a. General ledger
b. Balance sheet
c. Bank ledger
d. Chart of accounts (COA)
Answer: d
Difficulty: Medium
Section Reference: Master Data
7. Which term represents what a company owns, such as cash, inventory of materials, and
buildings?
a. Liabilities
b. Equity
c. Assets
d. Revenues
Answer: c
Difficulty: Medium
Section Reference: General Ledger Accounting
8. Which term represents what a company owes to others, including money owed to vendors
and loans from financial institutions?
a. Liabilities
b. Equity
c. Assets
d. Revenues
Answer: a
Difficulty: Medium
9. Which term represents the monies a company earns by selling its products and services?
a. Liabilities
b. Assets
c. Expenses
d. Revenue
e. Equity
Answer: d
Difficulty: Medium
10. Which term represents the costs associated with creating and selling products and
services?
a. Assets
b. Expenses
c. Liabilities
d. Equity
Answer: b
Difficulty: Medium
11. Which element is not a part of the typical company code data in general ledger accounts?
a. Tax-related data
b. Field status groups
c. Line item display
d. Reconciliation account data
Answer: e
Difficulty: Difficult
12. Which term is a general ledger account that consolidates data from a group of related
sub-ledger accounts?
a. Subsidiary ledger
b. Sub-ledger
c. Reconciliation account
d. Line item display
Answer: c
Difficulty: Medium
Section Reference: Subsidiary ledgers and Reconciliation Account
13. Which of the following records the impact of a transaction step on financial accounting?
a. Financial accounting document

b. Parallel accounting document
c. Sub-ledger
d. Subsidiary ledger
Answer: a
Difficulty: Medium
Section Reference: Accounting Documents
14. Which of the following is used to implement multiple ledgers and use each ledger for
different purposes?
a. Financial accounting document

b. Subsidiary ledger
c. Sub-ledger
d. Parallel Accounting
Answer: d
Difficulty: Easy
Section Reference: Parallel Accounting
15. Which type of asset has a physical form?
a. Master asset
b. Tangible asset
c. Informal asset
d. Intangible asset
Answer: b
Difficulty: Easy
Section Reference: Asset Accounting
16. Which type of asset has a non-physical form?
a. Master asset
b. Tangible asset
c. Informal asset
d. Intangible asset
Answer: d
Difficulty: Easy
17. Which of the following is used to report data needed to meet legal and regulatory
requirements?
a. Assets
b. Equity
c. Tangible document
d. Financial statement
Answer: d
Difficulty: Medium
Section Reference:
18. Which of the following best describes the operative chart of accounts?
a. Contains the operational accounts that are used to record the financial impact of an
organization’s day-to-day transactions
b. Used to enable companies to meet special country-specific reporting requirements
c. Contains accounts that are used by multiple companies to consolidate their financial
reporting
d. Contains only accounts payable transactions
e. Contains only accounts receivable transaction
Answer: a
Section Reference: Chart of accounts
19. Which of the following is not a mode of acquiring an asset for a company?
a. Acquiring internally via the production process

b. Acquire from a vendor using the purchasing process
c. Acquire from a vendor without using the purchasing process
d. Selling equipment
e. Acquiring without a vendor
Answer: d
Difficulty: Easy
20. All of the following are transaction types that occur during the life of an asset except
___________ .
a. Acquisition
b. Depreciation
c. Allocation
d. Retirement
Answer: c
Difficulty: Easy
21. Financial statements can be generated from which of the following?
a. Operative COA
b. Country-specific COA
c. Both operative and country-specific COAs
d. Neither operative nor country-specific COAs
Answer: c
Difficulty: Easy
Section Reference: Financial Statements
Question type: Multiple Answers
22. Balance sheet accounts are grouped into which of the following categories?
a. Revenue
b. Assets
c. Liabilities
d. Equity
e. Expenses
Answer: b, c, d
Difficulty: Medium
23. An organization can possess which of the following types of assets?
a. Tangible
b. Intangible
c. Financial
d. Economic
e. Virtual
Answer: a, b, c
Difficulty: Medium
24. Tangible assets can include which of the following?
a. Computers
b. Bonds
c. Production Machinery
d. Real Estate
e. Mortgage
Answer: a, c, d
Difficulty: Medium
25. What are the most common transaction types that occur during the life of an asset?
a. Production
b. Allocation
c. Acquisition
d. Depreciation
e. Retirement
Answer: c, d, e
Difficulty: Medium
26. What are the primary ways in which an asset can be acquired?
a. Internally by production
b. Internally by inventory tracking
c. Externally by vendor
d. Externally without a vendor
e. By asset liquidation
Answer: a, c, d
Difficulty: Easy
Section Reference: Acquisition
27. Which of the following are common depreciation areas used in the US?
a. Book depreciation
b. Cost accounting depreciation
c. Legal depreciation
d. Special depreciation
e. Physical depreciation
Answer: a, b, c. d
Difficulty: Medium
Section Reference: Depreciation
28. Reporting in financial accounting is broadly divided into which of the following two
categories?
a. Posting goods issue

b. Displaying account information
c. Generating financial statements
d. Recording transactions
e. Automatic posting of accounts
Answer: b, c
Difficulty: Easy
Section Reference: Reporting
29. From which of the following can financial statements be generated?
a. Operative chart of accounts

b. Country-specific chart of accounts
c. Revenue accounts
d. Assets
e. Liability accounts
Answer: a, b
30. What is true about a business area?

a) It is a internal division of an enterprise
b) It helps management monitor performance
c) It is used for external reporting
d) It is associated with one company code
Answer: a, b, c
Difficulty: Easy
31. Which of the following are types of chart of accounts?

a) Operative COA
b) Country specific COA
c) Active COA
d) Group COA
Answer: a, b, d
Difficulty: Medium
Section Reference: Chart of Accounts
32. What does the COA data include?

a) Client segment
b) Storage location segment
c) Plant segment
d) Company code segment
Answer: a, d
Difficulty: Medium
Section General Ledger Accounts
33. The COA segment of the COA data includes which of the following?
a) Account currency
b) Account number
c) Account group
d) Short text
Answer: b, c
Difficulty: Medium
34. Which of the following does the balance sheet include?

a) Revenue
b) Expenses
c) Assets
d) Liabilities
Answer: c, d
Difficulty: Easy
35. Which of the following statements concerning reconciliation accounts are true?
a) Reconciliation account for customers is accounts payable
b) Reconciliation account for customers is accounts receivable
c) Reconciliation account for vendors is accounts payable
d) Reconciliation account for vendors is accounts receivable
Answer: b, c
Difficulty: Easy
Section Subsidiary Ledgers and Reconciliation Accounts
36. Which of the following statements regarding reconciliation accounts are not true?
a) Data are posted directly into them
b) Data are automatically posted into them after they are posted to the corresponding
sub-ledger
c) The reconciliation account includes the sum of the postings of the sub-ledgers.
d) None of the above
Answer: a
Difficulty: Easy
Section Subsidiary Ledgers and Reconciliation Accounts
37. Which attributes are present in the FI document items?
a) Amount
b) Document type
c) Posting date
d) Currency
e) Posting key
Answer: a, e
Difficulty: Medium
Section Accounting Documents
38. Which attributes are present in the FI document header?

a) Amount
b) Document type
c) Posting date
d) Currency
e) Posting key
Answer: b, c, d
Difficulty: Medium
Section Accounting Documents
39. Which of the following statements concerning the leading ledger are true?
a) It is a type of sub-ledger
b) Global accounting principles are consolidated into it
c) Having a leading ledger is optional
d) All transaction data are posted to it
Answer: b, d
Difficulty: Medium
Section Parallel Accounting
40. A cost center:

a) Absorbs costs
b) Can be associated with a department
c) Is similar to a cost object
d) Is associated with locations where costs are incurred
Answer: a, b, c, d
Difficulty: Easy
Section Concepts in Management Accounting
41. When does a debit take place?

a) When assets and expenses decrease
b) When assets and expenses increase
c) When revenue and liabilities decrease
d) When revenue and liabilities increase
Answer: b, c
Difficulty: Easy
Section General Ledger Accounting
42. Balance sheet accounts are grouped into:

a) Assets
b) Liabilities
c) Equity
d) Revenue
Answer: a, b, c
Difficulty: Easy
43. When does a credit take place?

a) When assets and expenses decrease
b) When assets and expenses increase
c) When revenue and liabilities decrease
d) When revenue and liabilities increase
Answer: a, d,
Difficulty: Easy
44. In accounts payable, which general ledger accounts are affected?

a) Accounts payable reconciliation
b) Vendor
c) Supplies expense
d) Bank
Answer: a, c, d
Difficulty: Easy
Section Accounts Payable Accounting
45. In accounts receivable, which general ledger accounts are affected?

a) Accounts receivable reconciliation
b) Sales revenue
c) Bank
d) Supplies expense
Answer: a, b, c
Difficulty: Easy
Section Accounts Receivable Accounting
Question type: True or False
46. Accounting processes are broadly divided into two main categories: financial accounting
and management accounting.
Answer: True
Difficulty: Easy
47. Financial accounting (Fl) is concerned with recording the financial impacts of business
processes as they are executed.
Answer: True
Difficulty: Medium
48. Management accounting, or controlling (CO), is intended primarily for audiences outside
the organization.
Answer: False
Difficulty: Medium
49. Accounts payable accounting is not associated with the procurement process.
Answer: False
Difficulty: Medium
50. The general ledger is used to record the financial impacts of business process steps.
Answer: True
Difficulty: Easy
51. The balance sheet is a snapshot of the organization at a point in time.
Answer: True
Difficulty: Easy
52. A segment is a division of an enterprise for which management monitors performance

separately from other segments.
Answer: True
Difficulty: Medium
Section Reference: Organizational Data:
53. Business areas are external departments of an enterprise that are used to define areas of
responsibility or to meet the internal requirements of a division.
Answer: False
54. A list of accounts that can be included in a general ledger is called master data.
Answer: False
55. A chart of accounts (COA) is an ordered listing of accounts that comprise a company’s
general ledger.
Answer: True
Difficulty: Easy
Section Reference: Chart of Accounts
56. Liabilities are what the company owns, such as cash, land, and buildings.
Answer: False
Difficulty: Easy
Section Reference: General Ledger Accounts
57. Assets are monies the company earns by selling its products and services.
Answer: False
Difficulty: Medium
58. Expenses are what the company owes to others, including money owed to vendors and
loans from financial institutions.
Answer: False
59. Account currency determines the currency in which all the transactions are recorded.
Answer: True
Difficulty: Easy
60. A reconciliation account records the impact of a transaction step on financial accounting.
Answer: False
Section Reference: Subsidiary Ledgers and Reconciliation Accounts
61. A financial accounting document is a general ledger account that consolidates data from a
group of sub-ledger accounts, such as customers and vendors.
Answer: False
Section Reference: Accounting Documents
62. Parallel accounting consists of implementing multiple ledgers and using each ledger for
different purposes.
Answer: True
Difficulty: Easy
Section Reference: Parallel Accounting
63. An increase in an asset account or an expense account results in a credit posting.
Answer: False
Difficulty: Medium
64. An increase in revenue or liability results in a debit posting.
Answer: False
Difficulty: Medium
65. Accounts payable accounting is concerned with vendors.

Answer: True
Difficulty: Easy
Section Reference: Accounts Receivable (AR) Accounting
66. Accounts receivable accounting is concerned with customers.
Answer: True
Difficulty: Easy
67. Within accounts receivable accounting, when a payment is made the bank account is
debited and the appropriate customer account is credited.
Answer: True
Difficulty: Medium
68. Intangible assets are physical items such as buildings, machinery, and computers.
Answer: False
Difficulty: Medium
69. Tangible assets are non-physical items such as trademarks and patents.
Answer: False
Difficulty: Medium
70. Financial accounting is affected any time money either leaves or comes into the
company.
Answer: True
Difficulty: Easy
Section Reference: Integration with other processes
71. Reporting within financial accounting is divided into two categories: generating financial
statements and displaying account information.
Answer: True
Difficulty: Medium
72. Financial statements can be generated for different organizational levels including one or
more company codes and business areas.
Answer: True
Difficulty: Medium
Chapter 4
The Procurement Process
Multiple Choice Questions
1. Which one of the following is not a type of organizational data that is utilized in the
procurement process?
a. Client
b. Company Code
c. Storage Location
d. Purchasing Organization
e. Manufacturing Plant
Answer: e Difficulty: Easy Page Reference: 2

Section: Organizational Data Practice:
2. What is a storage location?
a. The place where raw materials are received

b. The place within a plant where materials are kept until they are needed
c. The place where materials are collected for staging and inspection
d. The place within a plant where machines are installed for production purposes
e. The place within a plant where finished goods are kept for sale
Answer: b Difficulty: Medium Page Reference: 2

Section: Storage Location Practice:
3. Which organizational element(s) control(s) the entry of accounting data in the vendor
master?
f. Purchasing organization
g. Client
h. Company Code
i. Client and Company Code
j. Client and Purchasing Organization
Answer: d Difficulty: Easy Page Reference: 3

Section: Organizational Data Practice: Yes
4. A purchasing organization is involved in all of the following operations except
f. Negotiating contracts and agreements

g. Negotiating pricing with vendors
h. Evaluating and identifying vendors
i. Determining storage locations within the plant
Answer: d Difficulty: Medium Page Reference: 4

Section: Purchasing Organization Practice:
5. Which one of the following is not a model of the purchasing organization?
a. Enterprise level
b. Company level
c. Client level
d. Plant level
j. Cross-plant
Answer: c Difficulty: Medium Page Reference: 4-6

6. Within the plant-level purchasing organization, also known as a plant-specific purchasing

Organization,
a. Each plant has its own purchasing organization

b. One purchasing organization is responsible for multiple plants
c. Only one purchasing organization for all plants
d. One purchasing organization is responsible for all company codes in the enterprise
e. Two or more purchasing organizations are responsible for each plant
Answer: a Difficulty: Difficult Page Reference: 5

Section: Plant-Level Purchasing Organization Practice:
7. A purchasing group is an individual or a group of individuals who are responsible for all of
the following except
f. Creating purchase requisitions

g. Negotiating contracts and agreements
h. Requesting quotations from vendors
i. Creating and monitoring purchase orders
j. Planning for material requirements

Section: Purchasing Group Practice:
8. Which one of the following is not one of the data types that are relevant to the purchasing
process?
a. Material master
b. Vendor master
c. Sales master
d. Purchasing info records
e. Conditions
Answer: c Difficulty: Medium Page Reference: 7

Section: Master Data Practice:
9. The key data in the purchasing view of the material master are
f. The purchasing organization, the goods receipt processing time, and the delivery
tolerances
g. The purchasing group, the goods receipt processing time, and the delivery tolerances
h. The purchasing group, the invoice, and the delivery tolerances
i. The purchasing group, the material master, and the delivery tolerances
j. The price, the storage location, and the delivery date
Answer: b Difficulty: Easy Page Reference: 9

Section: Material Master Practice:
10. Data in the vendor master are grouped into which three segments?
a. General data, storage data, and purchasing data

b. General data, storage data, and inventory data
c. Storage data, accounting data, and purchasing data
d. Storage data, accounting data, and pricing data
e. General data, accounting data, and purchasing data
Answer: e Difficulty: Medium Page Reference: 9

Section: Vendor Master Practice:
11. General data in a vendor master contain all of the following except:
f. Name
g. Address
h. Communication
i. Payment terms and methods
j. Search term

Section: Vendor Master Practice: Yes
12. Which of the following is an intersection or combination of material data and vendor data?
a. Condition type
b. Purchasing info record
c. Stock transfer
d. Third-party order
e. Search term

Section: Purchasing Info Records Practice:
13. Which item category would you use to have your vendor ship goods directly to your
customer?
f. Consignment
g. Third-party
h. Stock transfer
i. Standard
j. Transfer posting

Section: Item Categories Practice: Yes
14. Materials that are acquired to be used within the organization are referred to as
a. Stock materials
b. Transfer materials
c. Vendor materials
d. Consumable materials

Section: Account Determination Practice:
15. Which of the following account assignment categories is used when the company acquires a
fixed asset?
a. Cost center
b. Asset
c. Order
d. Sales order
e. Project

16. Which of the following document types is not utilized during the Purchasing process?
a. Material documents
b. Fl documents
c. CO documents
d. Picking document
e. Invoice

Section: Good Movement Practice:
17. A FI document includes a header and an items section. Which of the following data are
included in the items section?
a. Document number
b. Account
c. Storage location
d. Document date
e. Document currency

Section: Goods Receipt Practice: Yes
18. Which of the following statements about a plant is not true?
a. A plant can be assigned to more than one company code

b. A company code can have more than one plant
c. A plant is a key organizational element in purchasing
d. A plant can be assigned to only one company code
e. A plant must have at least one storage area

Section: Goods Movement Practice:
19. Which of the following goods movements need not involve a physical movement of
materials?
f. Goods receipt
g. Goods issue
h. Stock transfer
i. Transfer posting
j. None of the above (all involve physical movement of materials)

20. Which element of the requirements determination process involves creating the requisition?
a. Data
b. Task
c. Trigger
d. Outcomes
Answer: b Difficulty: Difficult Page Reference: 21

Section: Requirements Determination Practice:
21. A company can use which of the following to select a vendor from a list of potential
suppliers ?
a. Source list
b. Company code
c. Vendor master
d. Material master
Answer: a Difficulty: Medium Page Reference: 23

Section: Source of Supply Determination Practice:
22. Which element of a purchase order includes communicating with the vendor?
a. Trigger
b. Data
c. Task
d. Outcome

Section: Order Processing Practice:
23. Which item is included in the header of a purchase order?
a. Order quantity
b. Vendor
c. Delivery date
d. Price

Section: Order Processing Practice: Yes
24. SAP can utilize which of the following media to communicate with a vendor?
a. Web services
b. EDI
c. Fax
d. Print
e. All of the above

25. Which of the following is(are) a form of data within the goods receipt step?
a. Material ordered
b. Quantity delivered
c. Verification
d. Storage location
e. All of the above

Section: Goods Receipt Practice:
26. Which of the following is a form of invoice verification?
a. Three-way match
b. Quality management
c. Inspection lot
d. Warehouse management

Section: Invoice Verification Practice:
27. Which element of the payment step includes selecting a bank?
a. Trigger
b. Data
c. Outcome
d. Task

Section: Payment Processing Practice:
28. Which of the following facilitates the integration between vendor master data and financial
accounting?
a. Vendor account number

b. Reconciliation account
c. Accounts payable number
d. Material number
e. Accounts receivable number

Section: Payment Processing Practice: Yes
29. Purchasing information systems are a component of which system?
a. Logistics information systems

b. Business intelligence systems
c. Financial information systems
d. Human resource information systems

Section: Purchasing Information Systems Processing Practice: Yes
Multiple Answer Questions

1. Which of the following are organizational elements in purchasing?
a. Shipping point
b. Company code
c. Vendors
d. Materials
e. Plant
Answer: b, e Difficulty: Easy Page Reference: 2

Section: Organizational Data Practice:
2. Which of the following statements about storage locations are true?
a. A storage location must be assigned to a plant

b. A storage location can be assigned to more than one plant
c. A client can have more than one storage location
d. A plant can have more than one storage location
e. A storage location can hold only materials with a stock status of unrestricted use
Answer: a, c, d Difficulty: Medium Page Reference: 2

Section: Storage Location Practice: Yes
3. Which of the following are organizational elements in purchasing?
a. Sales organization
b. Purchasing area
c. Plant
d. Vendor
e. Storage location
Answer: c, e Difficulty: Easy Page Reference: 3

4. Which of the following statements about purchasing organizations are correct?
a. They negotiate conditions of purchase with vendors

b. They can purchase only for one company
c. They can purchase for multiple plants
d. They can purchase for multiple plants, but they must be within the same company
code
e. They identify a buyer or a group of buyers
Answer: a, c Difficulty: Medium Page Reference: 3

5. A purchase order can be sent to which of the following?
a. A vendor
b. A customer
c. A plant
d. A purchasing organization
e. A purchasing group
Answer: a, c Difficulty: Easy Page Reference: 6

6. Data for source determination are obtained from:
a. A purchase order
b. Purchase info records
c. A source list
d. Contracts and agreements
e. The vendor master record
Answer: b, c, d Difficulty: Medium Page Reference: 6

7. Which of the following are master data that are related to the purchasing process?
a. Material master
b. Vendor master
c. Vendor info records
d. Purchasing organization
e. Customer master
Answer: a, b, c Difficulty: Medium Page Reference: 7

Section: Master Data Practice: Yes
8. Which of the following are methods of valuing materials?
a. Actual price
b. Standard price
c. Purchasing price
d. Moving (average) price
e. Selling price
Answer: b, d Difficulty: Difficult Page Reference: 8

9. Which G/L accounts are impacted by the goods receipt step of the procurement process?
a. Accounts payable
b. Goods receipt / invoice receipt account
c. Inventory account
d. Vendor account
e. Band account
Answer: b, c Difficulty: Difficult Page Reference: 32

10. Which G/L accounts are impacted by the invoice verification step of the procurement
process?
a. Accounts payable
b. Goods receipt / invoice receipt account
c. Inventory account
d. Vendor account
e. Bank account
Answer: a, b, d Difficulty: Difficult Page Reference: 36

11. Which of the following data categories are included in a purchasing info record?
a. Freight
b. Discounts
c. Material number
d. Vendor address
e. Texts
Answer: a, b, e Difficulty: Easy Page Reference: 12

12. Data from which of the following sources are automatically included in a purchase order?
a. Vendor info record

b. Purchasing info record
c. Material master
d. Vendor master
e. Purchasing organization

13. Which of the following are material types?
k. Consumable material
l. Raw material
m. Packaging
n. Consignment material
o. Non-valuated material
Answer: a, b, c, e Difficulty: Medium Page Reference: 14

14. Which of the following are account assignment categories?
f. Asset
g. Order
h. Cost center
i. Sales order
j. Project
Answer: a, b, c, d, e Difficulty: Easy Page Reference: 15

Section: Account Determination Practice: Yes
15. Materials designated as __________ can be withdrawn only for sampling or for scrap.
a. Goods movement
b. In-quality inspection
c. Blocked stock
d. Material document
e. Purchase info record
Answer: b, c Difficulty: Medium Page Reference: 17

Section: Stock Type or Status Practice:
16. Material documents consist of a header and an items section. Which of the following are
included in the items section?
a. Document number
b. Movement type
c. Material number
d. Storage location
e. Document date

Section: Goods Movement Practice: Yes
17. A purchase order can be created with reference to which of the following?
a. Purchase order
b. Purchase requisition
c. Purchase info record
d. RFQ
e. Sales order
Answer: a, b, d Difficulty: Medium Page Reference: 25

Section: Order Processing Practice: Yes
18. Which of the following are consequences of the goods receipt step in the procurement
process?
a. A material document is created

b. An accounting document is created
c. The purchase order history is updated
d. The document flow is updated
e. The material master is updated
Answer: a, b, c, e Difficulty: Difficult Page Reference: 30

Section: Goods Receipts Practice: Yes
19. Which of the following are key documents in purchasing?
f. Material documents
g. Fl documents
h. CO documents
i. Purchase order
j. Invoice
Answer: a, b, c, d, e Difficulty: Easy Page Reference: 21

Section: Process Practice:
20. Which of the following organizational data are required when creating a purchase
requisition?
b. Company code
c. Storage location
d. Purchasing organization
e. Purchasing group
Answer: b, d, e Difficulty: Easy Page Reference: 22

Section: Requirement Determination Practice:
21. Which steps are involved in converting a purchase requisition into a purchase order?
a. Source list
b. Outline purchase agreement
c. Storage location
d. Request for quotation
e. Quotation
Answer: d, e Difficulty: Medium Page Reference: 24

Section: Source of Supply Determination Practice:
22. Which of the following organizational data are required when creating a purchase order?
a. User input
b. Purchase Requisition
c. RFQ
d. Quotation
e. Purchase order
Answer: b, c, d, e Difficulty: Medium Page Reference: 25

23. Which transaction documents are included in a purchase order?
k. Requisition
l. RFQ
m. Quotation
n. Conditions
o. Vendor
Answer: a, b, c Difficulty: Medium Page Reference: 26

24. SAP can utilize which of the following forms of media to communicate with a vendor?
a. Print
b. E-mail
c. EDI
d. Web services
e. Fax
Answer: a, b, c, d, e Difficulty: Medium Page Reference: 28

Section: Oder Processing Practice:
25. What are the key stock types (statuses) utilized in purchasing, based on usability of
materials?
a. Unrestricted use
b. Stock in transit
c. Stock on order
d. Stock in storage
e. Blocked stock
Answer: a, b, e Difficulty: Medium Page Reference: 31

26. Which of the following documents are required for the invoice verification step of the
a. Vendor invoice
b. Purchase requisition
c. Purchase order
d. Material document
e. Material master

27. Which of the following are consequences of the invoice verification step of the procurement
process?
a. A material document is created

b. An accounting document is created
c. The purchase order history is updated
d. G/L accounts are updated
e. The sales order is updated
Answer: b, d, c Difficulty: Difficult Page Reference: 34

Section: Invoice Verification Practice: Yes
28. Which of the following data are needed for invoice verification?
a. Company code
b. Purchase order
c. Material document
d. Invoice
e. User input
Answer: b, c, d, e Difficulty: Medium Page Reference: 35

29. Which of the following tasks are performed during the payment step?
a. Selecting method of payment

b. Updating master data
c. Selecting invoice items
d. Verifying an invoice
e. Calculating the payment amount
Answer: a, c, e Difficulty: Medium Page Reference: 37

30. To complete a vendor payment, which of the following types of data must be included on the
vendor master?
a. Payment terms
b. Payment method
c. Date
d. Payment address
e. Amount

31. Which organizational processes interact with procurement?
a. Project management
b. Material planning
c. Fulfillment (sales)
d. Management accounting
e. Financial accounting
Answer: a, b, c, d, e Difficulty: Medium Page Reference: 40

Section: Integration with Other Processes Practice:
32. Standard reporting tools in the transaction system are used to generate which of the
following?
a. Picking lists
b. Online lists
c. Work lists
d. Inventory lists
Answer: b, c Difficulty: Medium Page Reference: 40

Section: Reporting Practice: Yes
True-False Questions
1. Storage locations are places within a plant were materials are kept until they are needed.

2. There can only be one storage location within a plant.

3. A storage location is a key organizational element in purchasing.

4. A purchasing organization is involved only in negotiating prices with vendors

5. Typically, there are three models of purchasing organizations: enterprise-level, company-

level, and plant-level.

6. The enterprise‐level purchasing organization is also known as the cross‐company code

purchasing organization.

Section: Enterprise-Level Purchasing Organization Practice:
7. The company-level purchasing organization is the most centralized model.

Section: Company -Level Purchasing Organization Practice:
8. The enterprise-level purchasing organization is the most centralized model.

Section: Enterprise-Level Purchasing Organization Practice:
9. A plant can belong to more than one company code.

Section: Company-Level Purchasing Organization Practice:
10. The most decentralized model of purchasing organizations is the plant‐specific purchasing
organization.

Section: Plant-Level Purchasing Organization Practice:
11. A purchasing group is an internal group that is responsible for executing the procurement
process.

12. A purchasing organization is an individual or a group of individuals who are responsible for
purchasing activities for a material or group of materials.

13. Vendor master data include the data needed to conduct business with a vendor and to execute
transactions related to the procurement process.

14. The method used to value material is defined in the material master.

15. Different material types have different required material views.

16. General data related to a vendor are accessible to all company codes in a client.

17. Purchasing data related to a vendor are accessible to all purchasing organizations.

18. Material master data can be defined differently for different organizational levels.

19. A purchasing info record is an intersection or combination of material and accounting data.

Section: Purchasing Info Record Practice:
20. Accounting data related to a vendor are accessible to all clients in a company code.

21. Item categories in a purchase order determine the process steps used to procure materials.

Section: Item Categories Practice:
22. Consumable materials are acquired to be used within an organization.

23. When purchasing consumable materials, an account assignment category and specific
account assignment objects must be provided when the purchase order is created.

24. A goods movement is not required when changing the status of material from “in quality
inspection” to “unrestricted use”.

25. A plant-to-plant movement of goods does not generate an accounting document.

26. A goods receipt cannot be accomplished without a movement type.

27. A stock transfer does not involve a change in storage location.

28. A transfer posting changes the stock status of a material and need not involve a physical
movement of goods.

29. A goods movement is a transaction that causes a change in stock value or status.

30. Materials cannot be moved from one company code to another because each company code
uses a different set of books.

31. A transfer posting is used to move materials from one storage location to another.

32. A transfer posting does not generate a material document.

33. Requirements for materials must be created manually.

34. The data needed to create a purchase requisition are the item category, quantity, desired
delivery date, and desired delivery location or receiving plant.

35. A requisition represents a legal obligation to make the purchase.

36. The header section of a purchase order contains information such as purchase order number,
vendor, currency, dates, and payment terms.

37. The primary task of the order processing step is to create and send the purchase order to the
vendor.

38. SAP cannot utilize any media except Web services to communicate a purchase order to a
vendor.

39. Materials ordered in multiple purchase orders must be delivered in multiple shipments.

40. The material master is updated after the invoice verification step of the procurement process
has been completed.

41. The material master is updated after the goods receipt step of the procurement process has
been completed.

42. Tolerances for price variations among purchase orders, invoices, and goods receipts are
allowed, but tolerances for quantity variances are not.

43. Invoice verification authorizes payment of the invoice to the vendor.

44. Payments must be made automatically through a payment program.

45. Electronic payments are sent automatically.

46. Work lists display lists of master data and documents that are generated during the execution
of a process.

Section: Work Lists Practice:

Course Title: The Fulfillment Process
1. Which of the following key organizational elements are unique to the fulfillment process?
a. Sales area
b. Credit control area
c. Client
d. Shipping point
e. Plant
Answer: a, b, d
Difficulty: Moderate
2. Which of the following are the typical distribution channels?

a. Wholesale
b. Sales area
c. Online
d. Warehouse
e. Retail
Answer: a, c, e
Section Reference: Organizational Data - Distribution Channel
3. Which of the following are characteristics of a wholesale channel?

a. It does not include sales taxes in calculating prices
b. It distributes directly to consumers
c. It requires a minimum volume of purchase
d. It offers volume discounts
e. It may designate a specific plant or plants from which deliveries are made
Answer: a, c, d, e
4. A sales area is a unique combination of which of the following elements?

a. Client
b. Company code
c. Sales organization
d. Distribution channel
e. Division
Answer: c, d, e
Section Reference: Organizational Data - Sales Area
5. Which of the following can serve as an example of a plant ?

a. A manufacturing facility
b. An office building
c. A shipping point
d. A distribution channel
e. A storage facility
Answer: a, b, e
Section Reference: Organizational Data - Plant
6. Material master data relevant to the fulfillment processes are defined for which of the
following organizational levels?
a. Client
b. Distribution channel
c. Plant
d. Sales organization
e. Shipping point
Answer: a, b, c, d
Section Reference: Master Data - Material Master
7. Material master data are grouped into views. Which of the following views are used in
fulfillment?
a. Basic data
b. Client data
c. Sales organization data
d. Warehouse data
e. Sales plant data
Answer: a, c, e
8. Which one of the following are examples of sales units?

a. Cartons
b. Data
c. Crates
d. Barrels
e. Cases
Answer: a, c, d, e
Difficulty: Easy
9. The three segments into which the data in the customer master are divided are ________
a. Financial accounting data
b. Sales area data
c. Management ainancial data
d. General data
e. Basic data
Answer: a, b, d
Section Reference: Master Data - Customer Master
10. Which of the following departments in an organization are responsible for data in a
customer master?
a. HR
b. Accounting
c. Sales
d. Information Technology
e. Purchasing
Answer: b, c
11. What are the partner functions that customers can play in the fulfillment process?
a. Sold-to party
b. Bill-to party
c. Ship-to party
d. Receiver
e. Payer
Answer: a, b, c, e
12. Organizational data in a sales order include which of the following?

a. Shipping data
b. Client
c. Company code
d. Sales area
e. Purchasing organization
Answer: b, c, d
Section Reference: Process - Sales Order processing
13. Material master data in a delivery document consist of which of the following?
a. Material description
b. Unit of measure
c. Quantity
d. Weight
e. Billing date
Answer: a, b, d
Section Reference: Process - Shipping
14. Organizational data in a delivery document consist of which of the following?

a. Client
b. Company code
c. Quantity
d. Schedule lines
e. Shipping point
Answer: a, b, e
15. The customer credit management process assesses whether credit should be granted
when:
a. A sales order is created or changed
b. Delivery is authorized or changed
c. Invoices are created or changed
d. The post goods issue step is performed during shipping
Answer: a, b, d
Section Reference: Credit Management Process
16. The fulfillment process is integrated with which other processes?

a. Asset management
b. Project systems
c. Production
d. Management accounting
Answer: b, c, d
Section Reference: Integration with Other Processes
17. Information structures are used to generate which of the following?

a. User-defined analysis
b. Flexible analysis
c. Rigid analysis
d. Standard analysis
Answer: b, d
Difficulty: Easy
Section Reference: Reporting Analytics
18. Which of the following statements regarding work lists are true?
a. They identify tasks that are ready for completion.
b. They contain a list of orders that are scheduled to be shipped by a specific date.
c. They generate lists of documents associated with specific master data.
d. They consist of standard and rigid analyses
Answer: a, b
Section Reference: Reporting Work Lists
19. All of the following are key organizational elements in the fulfillment process except
a. Client
b. Company code
c. Sales area
d. Plant
e. Warehouse
Answer: e
Difficulty: Easy
20. Which one of the following combinations of organizational elements is included in the
definition of a sales area?
a. Sales organization, distribution channel, division
b. Sales organization, company code, division
c. Client, distribution channel, division
d. Client, plant, division
e. Sales organization, distribution channel, plant
Answer: a
21. Which of the following is NOT a typical characteristic of a wholesale channel?

a. It does not include sales taxes in calculating prices in the US.
b. It distributes goods directly to consumers.
c. It requires a minimum volume of purchase.
d. It offers volume discounts.
e. It may designate a specific plant or plants from which deliveries are made.
Answer: b
22. In the fulfillment process, a plant is

a. A manufacturing facility only
b. A facility from which the company provides after-sales support
c. A facility from which the company delivers only services to its customers
d. A storage area
e. A facility from which the company delivers products and services to its
customers
Answer: e
23. All of the following are examples of a shipping point except

a. A rail depot
b. A loading dock
c. A storage rack
d. A mail room
e. A designated group of employees
Answer: c
Section Reference: Organizational Data - Shipping Point
24. All of the following are key organizational elements for which material master data are
defined for the fulfillment process except
a. Client
b. Distribution channel
c. Plant
d. Sales organization
e. Shipping point
Answer: e
25. Material master data are grouped into views. Which one of the following combination of
views is relevant to the fulfillment process?
a. Basic data, sales organization data, sales plant data
b. Basic data, company data, sales plant data
c. Basic data, sales organization data, client data
d. Client data, sales area data, sales plant data
e. Basic data, sales area data, warehouse data
Answer: a
26. The data in the customer master are divided into the following three segments:
a. Plant data, accounting data, and sales area data
b. General data, financial data, and sales zone data
c. General data, accounting data, and shipping area data
d. Client data, accounting data, and sales zone data
e. General data, accounting data, and sales area data
Answer: e
27. Which master data do companies use to determine the prices of their products?
a. Price comparison
b. Pricing conditions
c. Selling price
d. Wholesale price
e. Tax allowances
Answer: b
Section Reference: Master Data - Pricing Conditions
28. Which action triggers sales order processing in the fulfillment process?
a. Delivery of goods to the customer
b. Receipt of goods from a vendor
c. Receipt of a customer purchase order
d. Receipt of payment from customer
e. Picking goods for shipment
Answer: c
Section Reference: Process
29. What is the final step in the fulfillment process?
a. Delivery of goods to the customer
b. Receipt of payment from the customer
c. Receipt of a customer purchase order
d. Receipt of goods from a vendor
e. Picking goods for shipment
Answer: b
30. Which one of the following represents the correct order of process steps for the
fulfillment process?
a. Sales order processing , pre-sales activity, inventory sourcing, shipping, billing,
payment
b. Sales order processing, pre-sales activity, inventory sourcing, billing, billing,
payment
c. Pre-sales activity, payment, sales order processing, inventory sourcing, shipping,
billing
d. Pre-sales activity, sales order processing, shipping, billing, inventory sourcing,
payment
e. Pre-sales activity, sales order processing, inventory sourcing, shipping, billing,
payment
Answer: e
31. Which of the following types of data is NOT included in a quotation?

a. Material master
b. Customer-material info records
c. Customer master
d. Vendor master
e. Pricing conditions
Answer: d
Section Reference: Process - Pre-sales Activity
32. Which of the following types of data is NOT included in a billing document?
a. Data from the customer master
b. Data from the sales order
c. Data from the delivery document
d. Organizational data
e. Pricing conditions
Answer: e
Section Reference: Process - Billing
33. The shipping step concludes with _________

a. Goods issue
b. Picking
c. Packing
d. Goods receipt
e. Goods delivery
Answer: a
34. Which of the following organizational levels is NOT relevant to the fulfillment process?
a. Purchasing organization
b. Shipping point
c. Storage location
d. Sales area
e. Plant
Answer: a
35. Which of the following organizational levels is associated with a company's product line?
b. Sales area
c. Distribution channel
d. Sales group
e. Division
Answer: e
Section Reference: Organizational Data - Division
36. Which of the following organizational levels is associated with the method used to
distribute materials to a customer?
b. Sales area
c. Distribution channel
d. Sales group
e. Division
Answer: c
Difficulty: Easy
37. Output conditions include all of the following types of data except
a. Output type
b. Transmission medium
c. Transmission time
d. Output mode
Answer: d
Section Reference: Master Data - Output Conditions
38. Which of the following statements regarding customer master data is NOT true?
a. They contain data that are needed to make postings in FI.
b. They are valid for a specific sales area.
c. They include data that are stored at the client level.
d. They include data that are needed to make postings in CO.
Answer: d
39. Which of the following statements regarding the fulfillment process is NOT true?
a. One delivery document can be created from multiple sales order documents.
b. An accounting document is created when a goods issue is posted.
c. A sales order must be created with reference to a quotation.
d. A quotation can generate multiple sales orders.
Answer: c
Section Reference: Process - Shipping, Process - Sales Order processing
40. Which of the following is NOT a key step in the fulfillment process?
a. Sales order processing
b. Inventory sourcing
c. Shipping
d. Invoice verification
e. Pre-sales activity
Answer: d
Section Reference: Process - Pre-sales Activity, Process - Shipping, Process - Sales Order
processing
41. Pre-sales activity includes all of the following except

a. Customer inquiries
b. Quotations
c. Mailing campaigns
d. Customer purchase orders
e. Tracking customer contacts
Answer: d
42. What document is NOT created during the billing step of the fulfillment process if
profitability analysis is active?
a. An invoice
b. An FI document
c. A material document
d. A CO document
Answer: c
43. Which of the following is not taken into consideration when determining a customer's
credit exposure?
a. open orders
b. scheduled deliveries
c. open invoices
d. current purchase orders
Answer: d
Section Reference: Credit Management Process
44. The fulfillment process is integrated with all of the following processes except
a. Procurement
b. Inventory and warehouse management
c. Asset management
d. Material planning
Answer: c
Section Reference: Integration with Other Processes
45. Which reporting options does SAP ERP system support?

a. Online lists
b. Work lists
c. Analytics
d. All of the above
Answer: d
Difficulty: Easy
46. Organizational elements essential to the fulfillment process include client, company code,
sales area, and plant.
Answer: True
Difficulty: Easy
47. A company code is divided into several sales organizations, each of which is responsible
for the sale and distribution of goods and services for a particular geographical area.
Answer: True
Difficulty: Easy
Section Reference: Organizational Data - Sales organization
48. A sales organization is responsible for negotiating terms and conditions of sales for a
particular market.
Answer: True
49. A company code must have at least two sales organizations.

Answer: False
Difficulty: Easy
50. A distribution channel is the means by which a company delivers its goods and services
to its customers.
Answer: True
Difficulty: Easy
51. A sales organization must have at least two divisions.
Answer: False
52. A sales area can be assigned to only one company code.
Answer: True
53. In the case of products, a plant is typically an office building.
Answer: False
Difficulty: Easy
54. A shipping point is a location in a plant at which inbound deliveries are received.
Answer: False
Difficulty: Easy
55. A plant must have at least one shipping point, which must be physically located in that
plant.
Answer: False
56. Sales plant data include details on how the material will be shipped from the plant.
Answer: True
57. Customer master data include data needed to conduct business with customers and to
execute transactions that are related specifically to the fulfillment process.
Answer: True
58. A customer‐material information record is comprised of master data specific to one

customer and one material.
Answer: True
Section Reference: Master Data - Customer Material Information Record
59. Pre-sales activity is often triggered by a communication from a customer such as a

purchase order.
Answer: False
60. An inquiry is a request for information regarding a potential order that the customer
places with the company.
Answer: True
61. The final step in the fulfillment process is the receipt of payment from the customer.
Answer: True
Difficulty: Easy
62. Customer master data are used in the fulfillment process for generating an invoice for
materials or services..
Answer: True
Difficulty: Easy
63. In addition to the organizational data, material master data is necessary in the payment
step.
Answer: False
Section Reference: Process - Payment
64. Open items are items in the payment step for which payment from the customer has been
received.
Answer: False
Section Reference: Process - Payment
65. The fulfillment process acts as a stand-alone process and cannot be integrated with other
processes within an organization.
Answer: False
Difficulty: Easy
Section Reference: Integration with other processes
66. A sales area can be assigned to multiple company codes.
Answer: False
Difficulty: Easy
67. A distribution channel can be assigned to multiple company codes.
Answer: False
Difficulty: Easy
68. A distribution channel can be assigned to multiple sales areas
Answer: True
Difficulty: Easy
69. A sales area can have many distribution channels.
Answer: False
70. Distribution channels can be used to differentiate between wholesale, retail, and Internet
sales strategies.
Answer: True
Difficulty: Easy
71. A sales organization is used to divide a market based on geographic characteristics.
Answer: True
Difficulty: Easy
Section Reference: Organizational Data - Sales Organization
72. A one–to-many relationship exists between a sales area and plants.
Answer: True
73. A customer info record is an intersection of customer data and sales data.
Answer: False
Section Reference: Master Data - Customer Material (Info) Record
74. A quotation can result in multiple sales orders.
Answer: True
75. Multiple quotations can be combined to create one sales order.
Answer: True
76. A line item in a sales order can include multiple schedule lines.
Answer: True
Section Reference: Process - Sales Order Processing
77. Multiple orders can be combined into one delivery if certain conditions are met.
Answer: True
Section Reference: Process - Sales Order Processing

Course Title: The Production Process (Phải ôn)
1. Which one of the following are key organizational data relevant to the production
process?
a. Company code
c. Client
d. Storage location
e. Plant
Answer: a, c, d, e
Section Reference: Introduction
2. The master data relevant to the production process are

a. Work centers
b. Material master
c. Bills of material
d. Client
e. Company code
Answer: a, b, c
3. Which of the following are statuses that can apply to a BOM?

a. On
b. Off
c. Active
d. Inactive
e. Open
Answer: c, d
Section Reference: Master Data - Bill of Material
4. What are the basic time elements in the production process?

a. Setup time
b. Alternate time
c. Build time
d. Teardown time
e. Processing time
Answer: a, d, e
Section Reference: Master Data - Product Routing
5. Which of the following can be included in processing time?

a. Machine time
b. Configuring work center
c. Configuring equipment
d. Labor time
e. Setup time
Answer: a, d
Section Reference: Master Data - Work Center
6. Which of the following are the general classifications of time elements in production?
a. Floating
b. Volatile
c. Fixed
d. Explosive
e. Variable
Answer: c, e
7. The material master is grouped into different views or segments based on which factors?
a. Processes that use the materials
b. Material type
c. Organizational level
d. Material composition
e. Material description
Answer: a, b, c
Difficulty: Hard
8. Examples of production resource tools are

a. Raw materials
b. Fixtures
c. Engineering drawings
d. Calibration instruments
e. Warehouse building
Answer: b, c, d
Section Reference: Master Data - Production Resource Tools
9. A planned order is a formal request that indicates

a. How many units of a product 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
Answer: a, c, e
Section Reference: Process - Request Production
10. What are the organizational data that are included in a planned order?
a. Client
b. Company code
c. Plant
d. Storage location
e. Bill of materials
Answer: a, b, c, d
11. Which are the following are options when a production manager receives a planned
order?
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
Answer: b, c. d
12. Which of the following are included in the header information of a production order?
a. Status
b. Work center
c. Plant
d. Validity
e. Material number
Answer: a, c, d
Section Reference: Process - Authorize Production
13. What data are included in a confirmation?

a. Where the work was completed
b. How much raw material was used
c. Who the material is to be shipped to
d. How much work was completed
e. Who completed the work
Answer: a, d, e
Section Reference: Process - Confirmations
14. Which user inputs are included in a goods receipt?

a. Plant
b. Material master
c. Quantities
d. Dates
e. Production order number
Answer: c, d, e
Section Reference: Process - Goods Receipt
15. SAP ERP systems can communicate with

a. Shop floor control systems
b. PDC systems
c. Systems that automate tasks in work centers
d. Storage facilities
Answer: a, b, c
Section Reference: Process - Order Release (strm)
16. What does a stock requirement list contain?

a. Material
b. BOM
c. Plant
d. MRP type
e. All of the above
Answer: a, c, d
17. Which one of the following is NOT a type of organizational data relevant to the
production process?
a. Company code
c. Client
d. Storage location
e. Plant
Answer: b
18. In process industries like chemicals and beverages, the bill of materials is also known as
a(n)
a. Formula
b. List of chemicals
c. Bill of chemicals
d. Equation
e. Material list
Answer: a
19. 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 carried out
d. A shipping dock
e. A storage shelf in a warehouse
Answer: c
ao
20. What term describes two simultaneous series of operations needed to build components
for a finished product?
a. Parallel sequences
b. Alternate sequences
c. Same sequence
d. Line sequence
e. Production sequence
Answer: a
21. Which one of the following best defines material staging?

a. Component materials are moved into storage
b. Component materials are received from the vendor
c. Component materials are moved from storage and prepared for use
d. Defective returned goods are broken down into several components for
refurbishment
e. Finished materials are moved back into a storage area
Answer: c
22. What term 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
Answer: e
Section Reference: Master Data - Bill of Materials
23. At what level are material requirements planning (MRP) and work scheduling data
defined?
a. Client level
b. Plant level
c. Company code level
d. Sales area level
e. Production level
Answer: b
24. Which of the following is not a step in the production process?

a. Production authorization
b. Goods issue
c. Request production
d. Billing
e. Order release
Answer: d
25. 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
Answer: a
26. Which of the following does a routing identify on a production order?
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
Answer: e
Section Reference: Process - Authorization Production
27. What step in the production process is used to enter data in to the SAP ERP system when
the operations needed to produce a materials are completed?
a. Production note
b. Confirmation
c. Order complete
d. Production record
e. Production outcome
Answer: b
28. The creation of a production order results in several outcomes including all of the
following except
a. Scheduling
b. Availability checks
c. Purchase requisitions
d. Preliminary costing
e. Confirmation
Answer: e
Section Reference: Process - Moderate
29. What operation in the routing is sometimes necessary to prepare materials for use in
production?
a. Backflushing
b. Confirmation
c. Material staging
d. Recall
e. Reservation
Answer: c
30. 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
Answer: d
Section Reference: Process - Goods Issue
31. When the finished goods have been produced the SAP ERP system allows a user to
record which of the following?
a. Confirmation
b. Goods issue
c. Order release
d. Goods receipt
e. Authorize production
Answer: a
Difficulty: Easy
32. Which of the following is an important report in the production process?

a. Work list
b. Stock requirement list
c. Online list
d. BOM
Answer: b
Difficulty: Easy
33. A bill of materials identifies the finished goods that are to be shipped to a specific
customer.
Answer: False
Difficulty: Easy
34. An active bill of materials can be used in the production of a material, but an inactive
BOM cannot.
Answer: True
Difficulty: Easy
35. A work center is a location where materials are placed immediately before they are
shipped.
Answer: False
Difficulty: Easy
36. All operations must be performed in some type of sequence, and many operations can be
completed in a variety of sequences.
Answer: True
37. Fixed time elements represent the time needed to produce one unit of material.
Answer: False
38. Variable time elements are independent of how many units of material are produced.
Answer: False
39. Material staging is the process in which component materials are moved from storage and
prepared for use.
Answer: True
40. Component assignment is a technique that assigns components in a BOM either to a

routing or to a specific operation within the routing.
Answer: True
41. Production resource tools are movable resources that are shared among different work
centers.
Answer: True
Section Reference: Master Data - Product Resource Tools
42. Typically a production order does not include any references to the BOM, routing, or
work centers.
Answer: False
Section Reference: Authorize Production
43. Capacity split is a strategy that is used to determine how the production work is to be
distributed among machines and/or people
Answer: True
44. After production has been completed, a goods receipt against the production order is used
to pick the goods and ship them to the customer
Answer: False
Section Reference: Process - Goods Receipt
45. If the bill of materials and the routing data are changed after the production order has
been created, the system must be manually instructed to reenter the data
Answer: True
46. A time ticket is used to record the amount of time required to complete various
operations
Answer: True
Difficulty: Easy
47. Material staging is a technique that is used to automatically record the goods issue when
an order is confirmed
Answer: False
48. Periodic processing is also known as period-end closing
Answer: True
Section Reference: Process - Periodic Processing
49. Overhead allocation, work in process determination, and order settlement are all included
in periodic processing
Answer: True
Section Reference: Process - Periodic Processing
50. A technically complete status for a production order means that even though the main
material is complete, other production processes may be needed to complete smaller
components of the material
Answer: False
Package Title: Test bank Commented [MA1]:
Course Title: Inventory and Warehouse Management Processes
Question type: Multiple-Answer
1. Which of the following are examples of goods movements?
f. Move posting
g. Stock transfer
h. Stock movement confirmation
i. Goods issue
j. Internal order
Answer: b, d
Difficulty: Easy
Section: Learning Objectives
2. Which of the following are examples of unplanned goods issue?
a. Issuing materials to scrap

b. Shipping goods to unplanned storage location
c. Unplanned returns from customers
d. Using materials for internal consumption
e. Issuing materials to sampling
Answer: a, d, e
Difficulty: Easy
Section: Goods Issue
3. Which of the following represent common stock statuses? Commented [MA2]: Câu 2
a. Temporary location
b. In transit
c. Blocked
d. Unconfirmed
e. Fast-moved item
Answer: b, c
Difficulty: Medium
Section: Transfer Postings
4. Which of the following occur when a goods receipt is posted for raw materials on a
consignment basis?
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.
Answer: a, c
5. A stock transfer can involve movements
a. Between storage locations in different plants.

b. Between plants in different company codes.
c. Between different storage types within the same storage location.
d. Between plants in one company code.
e. Between storage locations within one plant.
Answer: a, b, d, e
Section: Stock Transfers
6. Which of the following are valid techniques for moving materials?
a. Stock transport order

b. Stock internal request
c. Stock movement order
d. Two-step procedure
e. Three-step procedure
Answer: a, d
Difficulty: Medium
7. For which of the following scenarios can storage location-to-storage location transfer be
applied?
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
Answer: d, e
Section: Storage location-to-storage location transfer
8. Which of the following are examples of limitations of using a stock transfer to move
materials from one plant to another?
a. The company cannot track the progress of the transfer.

b. The costs of transporting the materials are not taken into account.
c. Valuation can be based only on the book value of the materials at the sending plant, not
on the negotiated value.
d. Valuation can be based only on the negotiated value of the materials, not on the book
value.
e. Valuation can be based only on the book value of the materials, not on the fair market
value.
Answer: a, b, c
Difficulty: Medium
Section: Stock transport orders
9. A stock transport order can involve steps from which of the following processes?
a. Fulfillment
b. Production
c. Plant management
d. Procurement
e. Inventory management
Answer: a, d, e
Difficulty: Medium
Section: Stock transport orders
10. Which of the following statements apply to stock transport orders?
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.
Answer: a,b, e
Section: Stock transport orders with delivery and billing
11. Which of the following are rules that apply when linking warehouses to storage
locations?
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 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.
Answer: b, c, e
Difficulty: Medium
Section: Organizational data in warehouse management
12. Which of the following are key master data elements in warehouse management?
a. Material master
b. Storage bins
c. Storage section
d. Warehouse
e. Storage area
Answer: a, b
Difficulty: Easy
Section: Master data in warehouse management
13. Which of the following organizational levels are relevant to the warehouse management
view of master data?
a. Company code
b. Storage type
c. Plant
d. Storage bin
e. Warehouse
Answer: a, c, e
Difficulty: Medium
Section: Material master
14. Which of the following organizational data are included in a transfer requirement.
a. Storage location
b. Source of requirement
c. Warehouse number
d. Storage bin
e. Transfer date
Answer: a, c
Difficulty: Medium
Section: Plant warehouse movement -> Data
15. Which of the following typically are sources of a transfer requirement for warehouse
movement?
a. Invoice
b. Delivery document
c. Production order
d. Purchase order
e. Material document
Answer: b, c, e
Difficulty: Medium
Section: Tasks
16. Which of the following transaction data are included in a transfer order?
a. Storage location
b. Destination storage bin
c. Client
d. Source storage bin
e. Material master
Answer: b, d
Difficulty: Medium
Section: Execute warehouse movement -> Data
17. Which of the following statements are TRUE regarding the header in a transfer order?
a. The data are always applicable to one line item because a transfer order is created for
each material individually.
b. The data are applicable to all line items.
c. The data can be either applicable to one or several line items, and this must be explicitly
specified in the document.
d. The header data can include transfer order number, dates, and warehouse movement type.
e. The header data can include source storage type, material number, and bin.
Answer: b, d
Difficulty: Medium
18. Examples of reference documents for a transfer order are
a. Transfer requirement.
b. Change request.
c. Storage location request.
d. Material document.
e. Delivery document
Answer: a, d, e
Difficulty: Medium
Section: Tasks
19. Which of the following are warehouse management steps related to the procurement
process?
a. Create invoice
b. Post goods issue
c. Create outbound delivery
d. Create transfer order
e. Create transfer requirement
Answer: d, e
Difficulty: Medium
Section: Plant warehouse movement
20. Which of the following are inventory management steps related to the fulfillment
process?
a. Create invoice
b. Post goods issue
e. Confirm transfer order
Answer: b, c
Difficulty: Medium
21. Which of the following are warehouse management steps related to the production
process?
a. Create invoice
b. Goods issue
e. Create transfer requirement
Answer: d, e
Difficulty: Medium
Section: Warehouse management in production
22. In a stock transfer from one bin to another within the same warehouse, which of the
following statements apply?
a. Warehouse movements are involved.

b. This is an internal transfer, so no warehouse movements are involved.
c. There is always an FI impact involved.
d. A transfer requirement is created automatically.
e. A transfer requirement must be created manually.
Answer: a, e
Section: Warehouse management in stock transfers
23. Which of the following are scenarios under which stock transfers involving warehouse
movements can occur?
a. Stock transfer from a plant where the storage location is not warehouse managed to a
plant where it is
b. Stock transfer from a storage bin in a non warehouse-managed storage location to a
storage bin in another non warehouse-managed storage location
c. Stock transfer between two non warehouse-managed storage locations
d. Stock transfer from a plant where the storage location is warehouse managed to a plant
where it is not
e. Stock transfer between two warehouse-managed storage locations
Answer: a, d, e
24. The key links between inventory management and warehouse management are
a. Transfer orders.
b. Storage locations.
c. Transfer requirements.
d. Association of storage locations to a warehouse.
e. Storage sections.
Answer: c, d
Difficulty: Easy
Section: Chapter summary
Question type: Multiple- Choice
25. Which of the following statements about the goods receipt step are NOT true? Commented [MA3]: Câu 3
f. It results in a decrease in inventory.

g. It can occur during the procurement process.
h. It can result in the creation of material and financial accounting documents.
i. Materials are placed in an appropriate storage location with an appropriate status.
j. It can occur during the production process.
Answer: a
Difficulty: Medium
Section: Goods Receipt
26. The key organizational level associated with inventory management is
a. Plant.
b. Company code.
c. Storage section.
d. Storage area.
e. Storage location.
Answer: e
Difficulty: Easy
Section: Inventory Management
27. When do unplanned receipts occur?
f. When an invoice has been canceled

g. When material is transferred to another location
h. When a reference document does not exist
i. When a stock transfer is created
j. When the capacity of a storage location is exceeded
Answer: c
Difficulty: Medium
28. In the production process, a goods issue reflects
a. Moving raw materials or semifinished goods from a work center to storage bins.
b. Shipping finished goods or trading goods to a customer to fill a sales order.
c. Issuing finished goods to a production order.
d. Shipping finished goods to a customer against a goods issue request.
e. Issuing raw materials or semifinished goods to a production order.
Answer: e
Difficulty: Medium
29. Which of the following scenarios requires material-to-material posting?
a. Changing the material status from consignment to warehouse stock

b. Changing the material number of a material
c. Changing the material’s storage location
d. Changing the status of materials in stock
e. Changing the type of materials in stock
Answer: b
Difficulty: Easy
30. Which one of the following is NOT an example of using transfer postings?
a. Changing the material status from consignment to warehouse stock

b. Changing the material number of a material
c. Changing the material’s storage location
d. Changing the status of materials in stock
e. Changing the type of materials in stock
Answer: c
Difficulty: Easy
31. What is a stock transfer used for?
f. To change the status or type of materials in stock

g. To show material movements when a material is received in the warehouse from the
vendor’s location
h. To indicate that a material-to-material change has been posted
i. To physically move materials from a storage location to the client’s warehouse
j. To physically move materials within the enterprise from one organizational level or
location to another
Answer: e
Difficulty: Easy
32. Which of the following options is appropriate when two locations are physically close to
each other and there is no significant time lag between issue and receipt?
a. One-step procedure
b. Two-step procedure
c. Three-step procedure
d. Stock transport order
Answer: a
33. A storage location-to-storage location transfer involves which of the following?
a. A stock transfer among several storage locations of two plants

b. A stock transfer between two storage locations of two plants
c. A stock transfer among several storage locations within the same plant
d. A stock transfer between two storage locations within the same plant
e. A stock transfer between or among at least two storage locations within one or more
plants
Answer: d
Difficulty: Easy
34. 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.
Answer: a
Difficulty: Easy
Section: Plant-to-plant transfer
35. Which of the following represents the hierarchy of a warehouse?
a. Warehouse, storage section, storage type, storage bin

b. Warehouse, storage bin, storage section, storage type
c. Warehouse, storage type, storage section, storage bin
d. Warehouse, storage section, storage bin, storage type
e. Warehouse, storage type, storage bin, storage section
Answer: c
Difficulty: Medium
Section: Storage Type
36. Shelf storage, pallet storage, and rack storage are examples of
a. Storage bins.
b. Warehouses.
c. Storage sections.
d. Storage types.
Answer: d
Difficulty: Medium
37. A storage type is a division of a warehouse based on the characteristics of the
a. Weight, width, and type

b. Dimensions and profitability.
c. Space, materials, and activity.
d. Price, space, and type.
e. Usage, price, and dimensions.
Answer: c
Difficulty: Medium
38. Fast-moving, slow-moving, heavy, light, large, and small are examples of
a. Storage bins.
b. Warehouses.
d. Storage types.
e. None of the above.
Answer: c
Difficulty: Medium
Section: Storage Section
39. A picking area groups which of the following elements?
a. Shelves and pallets

b. Storage bins, based on similar picking strategies
c. Materials with similar transportation type
d. Materials with similar usage
e. Materials of the same material type
Answer: b
Difficulty: Medium
Section: Picking area
40. If a company stores a material in a storage location that is associated with a warehouse,
then it must include additional data
a. In the storage location stock view of the material master for that material.
b. In the basic data view of the material master for that material.
c. In the general plant data/storage view of the material master for that material.
d. In the warehouse management view of the material master for that material.
e. No data need to be added.
Answer: d
Difficulty: Medium
Section: Material master
41. Shelves, stacks, and aisles are examples of

a. Storage locations.
b. Coordinate systems for addresses.
d. Storage identifiers.
e. Storage areas.
Answer: b
Difficulty: Easy
Section: Storage bins
42. 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
Answer: b
Difficulty: Medium
Section: Plan Warehouse movement
43. Which of the following is a request to change the status of the material?
a. Posting change notice

b. Notice for change
c. Material change list
d. Status request list
e. Change request
Answer: a
Difficulty: Easy
Section: Tasks
44. When creating a transfer order, you find that a particular material has to be moved from
multiple source bins. Which of the following statements follows from this scenario?
a. The transfer order will have multiple line items for the material.
b. More than one transfer order needs to be created.
c. The material will be written in one line item.
d. An internal order request will be created to move the material into one source bin.
e. This scenario is impossible.
Answer: a
45. The ERP system can create transfer orders automatically, but only when
a. A destination is known.
b. The reference document is a transfer requirement
c. A warehouse movement type is specified.
d. A reference document exists.
e. Both the plant and the storage location are known.
Answer: d
Difficulty: Medium
Section: Tasks
46. Which of the following represents a possible sequence of steps in the warehouse
movement process?
a. Create a transfer request, physically move the materials, confirm the movement, retrieve
the transfer request
b. Physically move the materials, confirm the movement, create a transfer request, retrieve
the transfer request
c. Physically move the materials, generate a transfer order, confirm the movement, retrieve
the transfer order
d. Generate a transfer order, retrieve the transfer order. confirm the movement, physically
move the materials
e. Generate a transfer order, physically move the materials, retrieve the transfer order,
confirm the movement
Answer: e
Section: Confirm warehouse movement
47. 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
Answer: c
Difficulty: Medium
Section: Confirm warehouse movement
48. In a stock transfer from a plant where the storage location is warehouse managed to a
plant where it is not, which of the following activities occurs at the receiving plant?
a. A goods receipt triggers WM process steps.
b. A simple goods receipt is recorded in IM.
c. A goods issue triggers WM process steps.
d. A simple goods issue is recorded in IM.
Answer: b
Difficulty: Medium
49. In a bin status report, double-clicking on a bin that contains materials
a. Produces a drilldown report showing details of the materials.

b. Opens a screen that enables you to change which bin is shown on the report.
c. Produces information about the bin location.
d. Opens a screen where storage bin information can be configured.
e. Will not display any data.
Answer: a
Difficulty: Medium
Section: Reporting
50. Warehouse management is typically used
a. By organizations that have small quantities of materials.

b. By transportation companies.
c. By organizations that have either large quantities of materials or an expensive inventory.
d. By storage companies.
e. By organizations that demand better reporting for their inventory.
Answer: c
Difficulty: Easy
Section: Chapter summary
51. A storage location is a key organizational level associated with inventory management.
Answer: True
Difficulty: Easy
52. The most relevant category of master data in inventory management is the plant.
Answer: False
Difficulty: Medium
53. A goods receipt cannot be posted without reference to an order.
Answer: False
Difficulty: Easy
54. Planned receipts occur when a reference document, such as a purchase order or a
production order, does not exist.
Answer: False
Difficulty: Easy
55. A goods issue results in the creation of appropriate material, FI, and CO documents.
Answer: True
Difficulty: Easy
56. A goods issue, unlike a goods receipt, can be posted without reference to an order.
Answer: False
Difficulty: Easy
57. A goods issue, unlike a goods receipt, results in a decrease in inventory.
Answer: True
Difficulty: Easy
58. A transfer posting always involves an actual movement of materials.
Answer: False
Difficulty: Easy
59. To change a material number you need to create a change request.
Answer: False
Difficulty: Easy
60. In a consignment scenario, when raw materials are consumed in the production process,
the status of the materials is changed from warehouse stock to consignment.
Answer: False
Difficulty: Medium
61. A stock transfer involves physically moving materials.
Answer: True
Difficulty: Easy
62. One-step procedure, two-step procedure, and stock transport order are strategies for
moving materials.
Answer: True
Difficulty: Medium
Difficulty: Easy
63. A material document is created during both the one-step and two-step procedures.
Answer: True
Difficulty: Easy
64. During the one-step procedure, two material documents are created.
Answer: False
Difficulty: Easy
65. Moving materials between two storage locations within the same plant or different plants
is known as storage location-to-storage location transfer.
Answer: False
Difficulty: Medium
66. One-step procedure is possible only when the materials are in unrestricted use at the
supplying location.
Answer: False
Difficulty: Medium
67. When transferring materials between storage locations in the same plant, if quantities are
valued in the same way, then no FI document is created.
Answer: True
Difficulty: Medium
68. In plant-to-plant transfer in the two-step method, the FI document is created at the time of
receipt.
Answer: False
Section: Plant-to-plant transfer
69. A movement of materials between two plants in different company codes is called a
company code-to-company code transfer.
Answer: True
Difficulty: Easy
Section: Company code-to-company code transfer
70. Stock transport orders with delivery include the invoice verification step.
Answer: False
Difficulty: Easy
Section: Stock transport orders with delivery
71. In stock transport orders with delivery and billing, valuation is based on the purchase
price in the STO.
Answer: True
Difficulty: Medium
72. Inventory management keeps track of the quantity of materials in storage location, but it
cannot determine their exact location.
Answer: True
Difficulty: Easy
73. A storage location can be linked to only one warehouse.
Answer: True
Difficulty: Easy
Section: Organizational data in warehouse management
74. A storage type is a division of a storage section that is based on the characteristics of the
space, materials, or activity.
Answer: False
Difficulty: Easy
Section: Storage type
75. Storage sections represent the physical links between IM and WM.
Answer: False
Difficulty: Medium
76. Shelf storage is an example of a storage type
Answer: True
Difficulty: Easy
77. Lightweight materials are designated as fast-moving materials.
Answer: False
Difficulty: Easy
Section: Storage section
78. A picking area groups materials with the same material type.
Answer: False
Difficulty: Easy
Section: Picking area
79. Storage bins are the smallest unit of space in a warehouse.
Answer: True
Difficulty: Easy
Section: Storage bins
80. Transfer requirements can be created manually as well as automatically.
Answer: True
Difficulty: Medium
Section: Tasks
81. Transfer orders are used to execute warehouse movements.
Answer: True
Difficulty: Easy
Section: Execute Warehouse Movement
82. Transfer orders can only be created automatically.
Answer: False
Difficulty: Easy
Section: Execute Warehouse Movement
83. Target quantities, destination storage type, bin, and quant are examples of line item data
in a transfer order.
Answer: True
Difficulty: Medium
84. Transfer orders in the execute warehouse management step can be created with or
without a reference document.
Answer: True
Difficulty: Easy
Section: Tasks
85. One of the steps of the inventory management process related to procurement is post
goods issue.
Answer: False
Difficulty: Easy
86. Inventory management in the production process involves a goods issue and a goods
receipt.
Answer: True
Difficulty: Easy
Section: Warehouse management in production
87. A stock transfer from a storage bin in one warehouse to a storage bin in another
warehouse is a possible scenario under which warehouse movements can occur.
Answer: False
Difficulty: Easy

Course Title: Material Planning Process
1. Material planning is concerned with answering which basic questions?
k. Which planning version should the company choose?

l. What materials are required?
m. What is the shortest time required for completing the planning?
n. When are the materials required?
o. How many materials are required?
Answer: b, d, e
Difficulty: Easy
2. Which of the following statements concerning maintaining inventory at high levels are
TRUE?
a. The longer the materials remain in storage, the more money the company loses.
b. Maintaining high levels of inventory can lead to serious write-offs.
c. Maintaining high levels of inventory is a recommended material planning policy.
d. Maintaining high levels of inventory can incur insurance costs.
e. The company may lose money storing excessive inventory, but the customer’s interest
must be the company’s highest priority.
Answer: a, b, d
Difficulty: Medium
3. The proposals that material planning generates typically are in the form of
a. A planning proposal.
b. Planned orders.
c. A material order list.
d. Purchase requisitions.
e. Purchase list.
Answer: b, d
Difficulty: Easy
4. Which of the following statements concerning the material planning process are NOT
TRUE?
a. It can involve the creation of an operations plan.

b. The demand management step creates requirements for individual materials.
c. The final procurement proposals trigger either the production or procurement process.
d. The requirements step specifies the way the materials will be transported.
e. MRP uses sales objectives to generate the final procurement proposals.
Answer: d, e
Difficulty: Medium
5. Which of the following are key organizational elements in materials planning?
a. Company code
b. Shipping point
c. Plant
d. Storage location
e. Sales area
Answer: a, c, d
Difficulty: Easy
6. Which of the following are master data relevant to material planning?
a. Storage location
b. Bills of material
c. Material master
d. Planning version
e. Production version
Answer: b, c
Difficulty: Easy
Section: Master Data
7. Which of the following statements regarding the MRP views of the material master are
TRUE?
a. There are four MRP data views.

b. The system uses the MRP 4 view to select the correct BOM.
c. There are three MRP data views.
d. The system uses the MRP 3 view to determine how to procure materials (make vs. buy).
e. The system uses the MRP 1 view to select the correct BOM.
Answer: a, b
Difficulty: Medium
8. Which of the following statements concerning the outcome of the material planning
process are NOT TRUE?
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.
Answer: b, c, d
Difficulty: Medium
Section: Procurement Type
9. Which of the following represent procurement types?
a. Consumption-based planning
b. External
c. Section 2
d. None
e. No planning
Answer: b, d
Difficulty: Easy
10. Which of the following are production control techniques as indicated by the MRP type
in the material master?
a. Consumption-based planning
b. External control
c. Internal control
d. Sales order-based planning
e. No planning
Answer: a, e
Difficulty: Easy
Section: MRP Type
11. Which of the following represent reasons why a company should maintain a safety stock?
a. The ERP system can be configured to automatically prevent inventory from falling below
the safety stock levels.
b. To avoid stock-outs
c. Maintaining a safety stock of at least 20 pieces is mandatory in the ERP system.
d. Maintaining a safety stock will guarantee that supply meets demand.
e. To avoid lost sales
Answer: a, b, e
Difficulty: Medium
Section: MRP Type
12. Which of the following statements about consumption-based planning are NOT TRUE?
a. It includes forecast-based planning as one of its categories.

b. It calculates the requirements for a material based on historical consumption data.
c. It is relatively more complicated compared with MRP.
d. It assumes that future consumption will follow the same patterns as past consumption.
e. It takes into account dependencies between different materials.
Answer: c, e
Section: MRP Type
13. Which of the following statements about MRP and MPS are TRUE?
a. MPS calculates requirements for all the levels of the BOM.

b. MRP calculates requirements only for the first-level items in the BOM.
c. Both MRP and MPS calculate requirements based on historical data only.
d. MRP calculates requirements for all levels of the BOM.
e. MPS calculates requirements only for the first-level items in the BOM.
Answer: d, e
Difficulty: Medium
Section: MRP Type
14. Which of the following are common time estimates utilized during the planning process?
a. Production planning time

b. GR processing time
c. Planned delivery time
d. Planned receiving time
e. In-house production time
Answer: b, c, e
Difficulty: Medium
Section: Scheduling Times
15. Which of the following are elements of the in-house production time?
a. Interoperation
b. Planned delivery
c. Processing
d. GR
e. Setup
Answer: a, c, e
Difficulty: Medium
16. The lot size independent in-house production time is used in which of the following
scenarios?
a. The lot size is fixed.

b. Processing time is constant.
c. Processing time is very short compared to the setup and interoperation times.
d. Processing time is long in comparison to the setup and interoperation times.
e. The quantity of material to be produced varies.
Answer: a, b, c
17. Multiple BOMs can be created for a single material in which of the following situations?
a. The same material is produced in different plants.

b. The material is produced in the same lot sizes.
c. The material is produced in different lot sizes.
d. A bike model is upgraded with a new tire.
e. The company applies a make-to-order production planning strategy to fulfill a customer
order for a material.
Answer: a, c, d
Difficulty: Medium
Section: BOM Selection Method
18. Which of the following statements regarding a BOM are TRUE?
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.
Answer: a, c, e
Difficulty: Medium
Section: General
19. Which of the following items represent demand elements of the availability check group?
a. Purchase requisitions
b. Production orders
c. Purchase orders
d. Safety stock
e. Material reservations
Answer: d, e
Difficulty: Medium
Section: Availability Check Group
20. Identify the SAP ERP terms for net requirements planning and planning with final
assembly.
a. Strategy 10
b. Strategy 20
c. Strategy 30
d. Strategy 40
e. Strategy 50
Answer: a, d
Difficulty: Easy
Section: Strategy Group
21. Which of the following statements about a product group are TRUE?
a. It is used to group products with similar planning characteristics.

b. Each member of a product group is assigned a group factor.
c. Materials can be members of more than one product group for different planning
scenarios.
d. A material can belong to only one product group.
e. Each member of a product group is assigned a proportion factor.
Answer: a, c, e
Section: Product Groups
22. Sales and operations planning involves the creation of a(n) Commented [MA4]: Câu 1
a. Financial document.
b. Material movement.
c. Sales forecast.
d. Operations plan.
e. Material document.
Answer: c, d
Difficulty: Medium
Section: Process
23. The MRP controller ________
a. Is a step in the planning process in which PIRs are transferred to demand management.
b. Uses variety of reports and makes adjustments to procurement proposals, as needed.
c. Transfers CIRs into PIRs.
d. Is a planning tool that generates forecasts.
e. Monitors material availability.
Answer: b, e
Difficulty: Medium
Section: Process
24. The purpose of the materials requirements planning step is to
a. Calculate PIR.
b. Calculate CIR.
c. Calculate net requirements.
d. Generate procurement proposals (requisitions and planned orders).
e. Calculate reorder points.
Answer: c, d
Difficulty: Medium
Section: Materials Requirements Planning
25. Which of the following statements concerning MRP-based planning are 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 low-value materials.
e. Planning is based on calculating a reorder point.
Answer: b, c
Difficulty: Medium
26. Which of the following statements regarding MRP are TRUE?
a. Planning is executed for only the first level of the material’s BOM.
b. MRP can be executed for one plant only.
c. MRP can result in planned orders.
d. MRP can result in purchase orders.
e. MRP can be executed for a single level or multiple levels of the BOM.
Answer: c, e
Difficulty: Medium
27. Which of the following statements about the MRP step in the material planning process
are TRUE?
a. MRP can be executed for one plant.

b. Planning for specific storage location in not possible with MRP.
c. MRP can be executed for multiple plants.
d. MRP can be executed within MRP areas.
e. MRP can only be executed manually by the MRP controller.
Answer: a, c, d
Difficulty: Medium
28. Which of the following are steps in the MRP procedure?
a. Check planning file

b. Scheduling
c. Lot size calculation
d. Bins calculation
e. Storage location inspection
Answer: a, b, c
Difficulty: Medium
29. If materials are to be procured externally, then, in the determine procurement proposal
step, MRP
a. Can create purchase requisitions.

b. Will always generate planned orders.
c. Will determine the quantity of material to procure.
d. Can create planned orders.
e. Can create schedule lines.
Answer: a, d, e
Difficulty: Medium
Section: Determine Procurement Proposal
30. Identify which of the following are processing keys:
a. Schedule lines
b. Regenerative planning
c. Net change planning
d. Purchase requisition planning
e. Planning mode
Answer: b, c
Difficulty: Medium
Section: Determine Procurement Proposal
31. Which of the following are tasks in SOP?
a. Monitoring exceptions
b. Creating a sales plan
c. Evaluating feasibility
d. Creating revised PIRs
e. Adjusting schedules
Answer: b, c
Difficulty: Medium
Section: General
32. Which of the following are possible outcomes in MRP?
a. Operations plan
b. Purchase requisitions
c. Production plan
d. Planned orders
e. Dependent requirements
Answer: b, d, e
Difficulty: Medium
Section: General
33. Which of the following statements about the MRP list are TRUE?
a. It displays static data.

b. It highlights changes to MRP elements.
c. It is the most important reporting tool.
d. The MRP controller is the only one authorized to generate it.
e. It displays MRP elements.
Answer: a, e
Difficulty: Medium
Section: MRP list
1. The main objective of material planning is
f. To minimize the expenses for storing excess inventory.

g. To balance the demand for materials with the supply.
h. To shorten the duration of the procurement cycle.
i. To eliminate excess inventory.
j. To prevent lost sales.
Answer: b
Difficulty: Easy
2. The money tied up in inventory best represents
a. An opportunity cost.
b. A liquid asset.
c. A strategic policy.
d. A high risk for loss.
e. A material planning strategy.
Answer: a
Difficulty: Easy
3. A purchase requisition is
a. A confirmation for purchasing materials.

b. Proof of delivery.
c. A document issued by a vendor.
d. A request to purchase materials.
e. A confirmation of an inbound delivery.
Answer: d
Difficulty: Easy
4. 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.
Answer: e
Difficulty: Easy
5. The organizational data elements in material planning are:
a. Plant, production version, company code.

b. Planning version, company code, client.
c. Client, company code, production version.
d. Storage section, client, storage location.
e. Client, company code, plant, storage location.
Answer: e
Difficulty: Medium
6. The master data elements in material planning are:
a. Material masters, product types, storage location, vendors.

b. Product routings, bills of material, material masters, 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.
Answer: b
Difficulty: Medium
7. A company has two options for procuring materials: make or buy. Which MRP data view
of the material master will the ERP system consider for this decision?
a. MRP 1
b. MRP 2
c. MRP 3
d. MRP 4
Answer: b
Difficulty: Medium
8. Which of the following statements best represents what procurement type indicates?
a. How a material is produced

b. Vendor’s groups
c. All of the ways to procure a material the user will choose from when making a decision
d. Whether a material is produced in house, obtained externally, both, or none
e. How a vendor will be chosen in the procurement process
Answer: d
Difficulty: Medium
9. MRP type specifies
a. Whether the material is produced in house or is obtained externally.

b. How material quantities for planning will be calculated.
c. The production control technique used in planning.
d. The available time periods the ERP system can use for scheduling.
e. The strategy for BOM selection.
Answer: c
Difficulty: Medium
Section: MRP Type
10. Replenishment lead time is
a. The time between placing an order and receiving the materials.

b. The amount of time the routing operations will last.
c. The length of time a working center usually operates (in hrs, in one day).
d. Another term for capacity.
e. A synonym for interoperation time.
Answer: a
Difficulty: Medium
Section: MRP Type
11. 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
e. Planning is based on MPS.
Answer: a
Difficulty: Easy
Section: MRP Type
12. Which of the following options represents categories of consumption-based planning?
a. Materials-requirement planning, time-phased planning, reorder-point planning

b. Master production scheduling, MRP, forecast-based planning
c. MRP, forecast-based planning, master production scheduling
d. Forecast-based planning, time-phased planning, reorder-point planning
Answer: d
Difficulty: Easy
Section: MRP Type
13. A company would be most likely to apply consumption-based planning for which of the
following products?
a. Car
b. Brake
c. Engine
d. Printer
e. Pen
Answer: e
Difficulty: Medium
Section: MRP Type
14. The MRP technique calculates the requirements for a material based on
a. Historical data.
b. Current data.
c. The material’s dependence on other materials.
d. Material type.
e. Replenishment lead time.
Answer: c
Difficulty: Medium
Section: MRP Type
15. Exploding the BOM refers to
a. Creating the BOM hierarchy showing all the levels of the BOM.
b. Calculating and planning requirements for materials at all levels of the BOM.
c. Executing the BOM for materials at the top level of the BOM.
d. Choosing the planning strategy for the BOM.
e. Generating multiple BOMs for materials in the same material group.
Answer: b
Difficulty: Medium
Section: MRP Type
16. Requirements that are calculated based on actual and forecasted sales are known as
a. Planned independent requirements.

b. Customer-planned independent requirements.
c. Integrated independent requirements.
d. Forecast-independent requirements.
e. Customer-independent requirements.
Answer: a
Difficulty: Medium
Section: MRP Type
17. The lot size key specifies the
a. Optimum lot size for a group of materials.

b. Recommended lot size for a material.
c. Procedure used to determine the capacity of a storage area.
d. Lot size groups per each material type.
e. Procedure that is used to determine the lot size.
Answer: e
Difficulty: Medium
Section: Lot Size Key
18. The static lot-sizing procedure
a. Combines the requirements from multiple time periods into one lot.
b. Specifies a fixed quantity based on fixed lot size.
c. Specifies a quantity that is fixed for a specific, limited time period.
d. Specifies a fixed quantity based on either fixed lot size or lot-for-lot.
e. Combines quantities for multiple time periods into several lots.
Answer: d
19. Setup time, processing time, and interoperation time are elements of
a. In-house production time.

b. Goods issue processing time.
c. Planned delivery time.
d. Goods receipt processing time.
e. Planned shipping time.
Answer: a
Difficulty: Easy
20. Setup time is the time required to
a. Set up the operations used in a work center.

b. Move materials from one work center to another.
c. Process materials in production.
d. Set up the work centers used in production.
e. Move materials from one storage location to another.
Answer: d
Difficulty: Medium
21. In SAP ERP production planning strategy, net requirements planning (Strategy 10),
procurement proposals are based on
a. CIRs and components that are already in stock.

b. PIRs, with regard to CIRs.
c. PIRs, without regard to CIRs.
d. CIRs, but components are not in stock.
e. PIRs, but the components are not in stock.
Answer: c
22. Consider the following scenario, then choose which one of the options below corresponds
to the level of CIRs and PIRs after consumption.
Before consumption:
Procurement proposal for CIRs: 50

Procurement proposal for PIRs: 50
a. CIRs: 50, PIRs: 0

b. CIRs: 50, PIRs: 50
c. CIRs: 0, PIRs: 0
d. CIRs: 0, PIRs: 50
e. CIRs: 100, PIRs: 100
Answer: a
Difficulty: Medium
Section: Consumption Mode
23. The manner in which CIRs consume PIRs is determined by the
a. Consumption type.
b. Consumption mode.
c. Consumption strategy.
d. Planning strategy.
e. Planning type.
Answer: b
Difficulty: Easy
24. What does SOP stand for?
a. Sales and operations planning

b. Strategic operations planning
c. Sales operations planner
d. Systems operations products
e. Sales operations projects
Answer: a
Difficulty: Easy
Section: Process
25. What is SOP used for?
a. Creating an operational plan and material documents

b. Calculating the financial impact of the material movements
c. Generating and executing the operations plan
d. Tracking material movements
e. Forecasting and planning
Answer: e
Difficulty: Medium
Section: Process
26. After the SOP process has generated the production plan,
a. SOP executes the plan.

b. The plan is conveyed to MRP for execution.
c. The plan is transferred to demand management.
d. SOP uses the plan to generate execution plan.
e. The plan is saved as a production version.
Answer: c
Difficulty: Medium
Section: Process
27. The planning table is best defined as

a. An independent tool used for parallel execution of the SOP process.
b. An interface for transferring data into SOP.
c. An interface used to enter all the operational plans.
d. A spreadsheet-like tool used to complete the tasks in SOP.
e. A brainstorming session for selecting the most appropriate plan.
Answer: d
Difficulty: Medium
Section: Tasks
28. 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
Answer: a
Difficulty: Easy
Section: Tasks
29. Master production scheduling is specialized form of
a. MRP.
b. Demand planning.
c. SOP.
d. Production planning.
e. Operations scheduling.
Answer: a
Difficulty: Easy
30. Given the following information, use the net requirement calculation to calculate the
available stock.
MRP type is consumption-based planning.

Plant stock = 100
Receipts = 20
Issues = 10
Safety stock = 30
a. 120
b. 130
c. 80
d. 70
e. 110
Answer: a
Difficulty: Medium
31. Given the following information, use the net requirement calculation to calculate the
available stock.
MRP type is MPS.
Plant stock = 100

Receipts = 20
Issues = 10
Safety stock = 30
a. 120
b. 130
c. 80
d. 70
e. 110
Answer: c
Difficulty: Medium
32. In the determine procurement proposal step, for materials with the procurement type of
internal, MRP will:
a. Generate purchase requisitions.

b. Provide three options.
c. Prompt the MRP controller to select the appropriate production version.
d. Transfer this step to MPS.
e. Always generate planned orders.
Answer: e
Difficulty: Easy
Section: Determine procurement proposal
33. Which of the following is most likely to trigger the MRP process?
a. A periodic planning need

b. Changes to MRP elements
c. The need for an operations plan
d. Events affecting demand
e. Events affecting supply
Answer: b
Section: Various
34. The most important reporting tool in material planning is the
a. Planning result report.

b. MRP list.
c. Stock overview.
d. Stock/requirements list.
e. Strategies list.
Answer: d
Difficulty: Easy
Section: Stock Requirements List
35. The stock/requirements list displays
a. Changes in the planning situation since MRP was run.

b. MRP elements at an aggregation level.
c. All MRP elements for a material.
d. Required materials per production version.
e. All materials needed per MRP element.
Answer: c
Difficulty: Easy
Section: Stock Requirements List
1. Lack of overall planning may result in excess inventory and lost sales.
Answer: True
Difficulty: Easy
2. When a company transfers part of the materials in stock from one distribution center to
another, this scenario is known as stock-out.
Answer: False
Difficulty: Easy
3. Material planning is one of the most complex processes within an organization.
Answer: True
Difficulty: Easy
4. Planned orders are requests to produce materials.
Answer: True
Difficulty: Easy
5. MRP uses requirements to generate the final procurement proposals
Answer: True
Difficulty: Easy
6. Storage area is one of the organizational data elements in material planning.

Answer: False
Difficulty: Easy
7. Product routings is one of the master data elements in material planning.
Answer: True
Difficulty: Easy
8. Work scheduling data are defined at the client level.
Answer: False
Difficulty: Easy
9. MRP is defined at the plant level.
Answer: True
Difficulty: Easy
Section: Material Master
10. MRP data are specific to each plant.
Answer: True
Difficulty: Easy
11. In-house production is the most common procurement type for raw materials.
Answer: False
Difficulty: Easy
12. Semifinished goods are typically purchased from vendors
Answer: False
Difficulty: Easy
13. MRP type specifies the production control technique used in planning.
Answer: True
Difficulty: Easy
Section: MRP Type
14. Consumption-based planning calculates the requirements for a material based on current
consumption data.
Answer: False
Difficulty: Easy
Section: MRP Type
15. In time-phased planning, materials are ordered when the stock level reaches a
predetermined level known as the reorder point.
Answer: False
Difficulty: Medium
Section: MRP Type
16. Consumption-based planning assumes that future consumption will follow the same
patterns as current consumption.
Answer: False
Difficulty: Easy
Section: MRP Type
17. In a scenario when the need for brakes depends on the need to produce cars,
consumption-based planning will be an appropriate strategy to use.
Answer: False
Difficulty: Medium
Section: MRP Type
18. Typically, semifinished goods and raw materials have dependent requirements.
Answer: True
Difficulty: Easy
Section: MRP Type
19. The input to MRP is the independent requirement for the finished goods.
Answer: True
Difficulty: Medium
Section: MRP Type
20. MPS is a mandatory step in the planning process and is usually followed by MRP.
Answer: False
Difficulty: Easy
Section: MRP Type
21. Period lot-sizing procedures combine the requirements from multiple time periods, such
as days or weeks, into one lot.
Answer: True
Difficulty: Easy
22. For externally procured materials, the planned delivery time and the GR processing time
are used to determine procurement time.
Answer: True
Difficulty: Medium
23. Lot size dependent times remain the same regardless of the amount of the material being
procured.
Answer: False
Difficulty: Easy
24. The BOM selection method in the material master identifies the criteria the system
should use to select the BOM.
Answer: True
Difficulty: Easy
Section: BOM Selection Method
25. A BOM is used only in the materials planning process.
Answer: False
Difficulty: Easy
Section: Various
26. Planning with final assembly takes into consideration current sales orders.
Answer: True
Difficulty: Easy
27. When using planning without final assembly, components are made to order, and the
finished product is made to stock.
Answer: False
Difficulty: Easy
28. The strategy group defines the strategy the system uses to determine whether a quantity
of material will be available on a specific day.
Answer: False
Difficulty: Easy
Section: Availability Check Group
29. A BOM always identifies the components needed to make one unit of the finished
product.
Answer: False
Difficulty: Medium
Section: Various
30. In make-to-stock strategy the production of the finished goods and any needed
semifinished goods is triggered by a sales order.
Answer: False
Difficulty: Easy
31. Consumption-based planning derives dependent demand based on independent

requirements and exploding the BOM.
Answer: False
Difficulty: Easy
32. A product group groups products with similar planning characteristics, such as similar
types.
Answer: True
Difficulty: Easy
Section: Product Groups
33. Whether SOP is required depends on the production planning strategy used for the
material.
Answer: True
Difficulty: Medium
Section: Process
34. The MRP controller is a program in the SOP process that is responsible for creating
procurement proposals and monitoring material availability.
Answer: False
Difficulty: Easy
Section: Process
35. SOP can be either flexible or standard.
Answer: True
Difficulty: Easy
Section: Process
36. The operations plan is an outcome of SOP.
Answer: True
Difficulty: Easy
Section: Sales and operations planning
37. After planning the master schedule items, MRP creates dependent requirements for the
components of those items.
Answer: True
Difficulty: Medium
38. MPS is generally appropriate for high-value items only.
Answer: True
Difficulty: Easy
39. MPS creates planned orders for the MPS items and dependent requirements for all items
in the BOM.
Answer: False
Difficulty: Easy
40. Net requirements calculation is one of the steps in MRP.
Answer: True
Difficulty: Easy
41. The lot size calculation step in MRP is used to determine whether there is a need to
procure the material.
Answer: False
Difficulty: Easy
42. The ERP system initially uses forward scheduling and employs backward scheduling
only if forward scheduling is unsuccessful.
Answer: False
Difficulty: Easy
43. A processing key is a control parameter that determines how the materials in the MRP list
will be organized.
Answer: False
Difficulty: Easy
Section: Dependent Requirement Determination
44. The schedule lines control parameter applies to scheduling agreements.
Answer: True
Difficulty: Medium
Section: Dependent Requirement Determination
45. The MRP list, unlike the stock/requirements list, highlights changes to MRP elements
that have occurred since MRP was executed.
Answer: False
Difficulty: Easy
Section: MRP List
46. The planning result report aggregates quantities for MRP elements to make it easier to
view the overall picture.
Answer: True
Difficulty: Easy
Section: Planning Result Report

Course Title: Integrated Process
1. Which of the following processes can have a controlling (CO) impact?
a. Warehouse management
b. Fulfillment
c. Inventory management
d. Production
e. Procurement
Answer: b, d, e
Difficulty: Medium
Section: General
2. Which of the following processes can result in the creation of a financial (FI) document?
b. Fulfillment
d. Production
e. Procurement
Answer: b, c, d, e
Difficulty: Medium
Section: General
3. Which of the following are steps in the warehouse management process?
a. Create goods receipt

b. Confirm transfer order
c. Create stock transfer order
d. Create transfer requirement
e. Post goods issue
Answer: b, d
Difficulty: Medium
Section: Warehouse Management Steps Related to Procurement
4. Which of the steps listed below are part of the fulfillment process.
a. Purchase order sent to vendor

b. Goods receipt posted
c. Billing
d. STO processing
e. Sales order processing
Answer: c, e
Difficulty: Medium
Section: Fulfillment Process – Initial Steps and Fulfillment Process - Concluding Steps
5. Which of the steps listed below are part of the procurement process?
a. Create transfer order

b. Create requisition
c. Send payment
d. Process sales order
e. Process STO
Answer: b, c
Difficulty: Medium
Section: Procurement Process – Initial Step and Procurement Process - External Procurement
6. Which of the following statements concerning the procurement process are TRUE?
a. Vendor billing is one of the steps.

b. Only one FI document is created.
c. Goods receipt is one of the steps.
d. The send payment step involves creation of an FI document.
e. Two material documents are created.
Answer: a, c, d
Difficulty: Medium
Section: Procurement Process – External Procurement
7. Identify the steps in the procurement process for which an FI document is created.
a. Goods receipt
b. Goods issue
c. Billing
d. Purchase order
e. Receive invoice
Answer: a, e
Difficulty: Medium
Section: Procurement Process – Internal Procurement and Procurement Process – External
Procurement
8. Identify the steps in the fulfillment process for which an FI document is created.
a. Goods receipt
b. Goods issue
c. Billing
d. Purchase order
e. Receive invoice
Answer: b, c
Difficulty: Medium
Section: Fulfillment Process – Concluding Steps
9. The sales order processing step in the fulfillment process includes which of the following
activities?
a. Materials are shipped.

b. An availability check is executed.
c. A goods receipt is posted.
d. A sales order is created.
e. A goods issue is posted.
Answer: b, d
Difficulty: Medium
Section: Fulfillment Process – Initial Steps
10. In which of the following steps in the production process is a material document created?
a. Goods receipt
b. Goods issue
c. Confirmation
d. Request production
e. Availability check
Answer: a, b
Difficulty: Medium
Section: Production Process - Continued
11. Which of the following are strategies for acquiring materials?
a. Internally from a vendor

b. Externally from a storage location
c. Externally from a plant
d. Internally from another plant
e. Externally from a vendor
Answer: d, e
Difficulty: Easy
Section: Procurement Process – Initial Steps
12. Which of the following statements apply to the goods issue step of the internal
a. Both material and FI documents are created.

b. A material document is created, but FI documents are not.
c. The status of the materials in the receiving plant is “stock in transit.”
d. The status of the materials in the receiving plant is “unrestricted use.”
e. The material document includes two line items for each location.
Answer: a, c, e
Section: Procurement Process – Internal Procurement
13. Which of the following statements regarding the goods receipt step of the internal
procurement process are TRUE?
a. Both material and FI documents are created.

b. A material document is created, but an FI document is not.
c. The status of the materials in the receiving plant is “stock in transit.”
d. The status of the materials in the receiving plant is “unrestricted use.”
e. The material document includes two line items, one for the sending location (plant) and
one for the receiving location.
Answer: b, d
14. Which of the following statements regarding the goods receipt step of the external
procurement process are TRUE?
a. A goods receipt is created against an STO.

b. This step results in both an FI and a material document.
c. A goods receipt is created against a PO.
d. An FI document is created, but there is no GL impact.
e. Only one material document is created.
Answer: b, c, e
Difficulty: Medium
15. Which of the following impacts to the general ledger accounts result when a company
pays a vendor invoice?
a. The bank account is credited.

b. The vendor subledger account is debited.
c. The bank account is debited.
d. The vendor subledger account is credited.
e. The accounts payable reconciliation account is debited.
Answer: a, b, e
Difficulty: Medium
16. Which of the following statements regarding WM steps related to procurement are NOT
TRUE?
a. A transfer requirement is created.

b. Goods are moved from storage bins to an interim storage area.
c. Goods are moved from an interim storage area into storage bins.
d. A transfer order is created against an STO.
e. A PO triggers the WM process.
Answer: b, d, e
Difficulty: Medium
17. The shipping step involves which of the following activities?
a. Creating a delivery document.

b. Authorizing picking, packing, and goods issue.
c. Processing a purchase order.
d. Authorizing picking, packing, and goods receipt.
e. Creating a transfer order.
Answer: a, b
Difficulty: Medium
Section: Fulfillment Process – Shipping
18. Which of the following statements regarding WM steps related to fulfillment are TRUE?
a. A transfer order is created based on a delivery document.

b. Goods are moved from an interim storage area into storage bins.
c. A transfer order is created against an STO.
d. A PO triggers the WM process.
e. Goods are moved from storage bins to an interim storage area.
Answer: a, e
Difficulty: Medium
Section: Warehouse Management Steps Related to Fulfillment
19. What are the GL entries when a customer invoice is generated?
a. The accounts payable reconciliation account is debited.

b. The accounts receivable reconciliation account is debited.
c. The customer subledger account is debited.
d. The revenue account is credited.
e. The vendor subledger account is credited.
Answer: b, c, d
Difficulty: Medium
Section: Fulfillment Process – Concluding steps
20. Which of the following statements about an STO are NOT TRUE?
a. It can trigger the fulfillment process.

b. It can trigger the production process.
c. A goods issue can be posted against an STO.
d. A goods receipt can be posted against an STO.
e. A purchase order can be posted against an STO.
Answer: a, e
Difficulty: Medium
Section: Procurement, fulfillment, production, and IWM processes
21. Identify the GL entries that are posted when a payment is sent to a vendor.
a. The vendor account is credited,

b. The vendor account is debited.
c. The accounts payable reconciliation account is debited.
d. The bank account is credited.
e. The bank account is debited.
Answer: b, c, d
Difficulty: Medium
Section: Procurement Process – External
22. The goods receipt step in production involves which of the following GL entries?
a. Finished goods inventory account is debited.

b. The manufacturing output settlement account is credited.
c. Finished goods inventory account is credited.
d. The COGS account is debited.
e. The GR/IR account is credited.
Answer: a, b
Difficulty: Medium
23. Which of the following statements about the integrated process are TRUE?
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.
Answer: a, c, e
Difficulty: Medium
Section: General
1. In a make-to-order strategy the production of finished goods or semifinished goods is

most frequently triggered by a
k. Sales order.
l. Purchase order.
m. Transfer order.
n. Production order.
o. Goods issue.
Answer: a
Difficulty: Easy
2. Which one of the steps listed most likely would be the final step in the procurement
process?
a. Confirm transfer order

b. Goods receipt
c. Goods issue
d. STO
e. Send payment
Answer: e
Difficulty: Medium
Section: Procurement Process – Internal Procurement and Procurement Process - External
Procurement
3. In which of the following processes is a material document NOT created?
b. Fulfillment
d. Production
e. Procurement
Answer: a
Difficulty: Medium
Section: General
4. In which of the following processes is a transfer order (TO) created?
b. Fulfillment
d. Production
e. Procurement
Answer: a
Difficulty: Medium
Section: General
5. After a transfer order related to fulfillment has been confirmed, which of the following
steps is most likely to occur next?
a. Billing
b. Payment
c. Creating a transfer requirement
d. Shipping
e. Posting a goods receipt
Answer: d
Difficulty: Medium
Section: Fulfillment Process - Continued
6. Shipping, billing, and payment are steps in which process?
b. Fulfillment
d. Production
e. Procurement
Answer: b
Difficulty: Medium
Section: Fulfillment Process – Continued and Fulfillment Process – Concluding Steps
7. Receive invoice is a step in which process?
b. Fulfillment
d. Production
e. Procurement
Answer: e
Difficulty: Medium
Section: Procurement Process – (External)
8. A company has decided to acquire materials via internal procurement. What is the likely
next step?
a. Create an STO
b. Create a purchase order
c. Create a sales order
d. Initiate shipping
e. Post a goods receipt
Answer: a
Difficulty: Medium
9. Which one of the following statements about the goods receipt step in the procurement
process is TRUE?
a. No FI or material documents are created.

b. One material document is created, but no FI documents are.
c. One FI document created, but no material documents are.
d. Both FI and material documents are created.
Answer: d
Difficulty: Medium
10. Identify the step in the procurement process for which a material document is created.
a. Goods issue
b. Goods receipt
c. Transfer order
d. STO
e. Create requisition
Answer: b
Difficulty: Medium
11. Identify the step in the fulfillment process for which a material document is created.
a. Goods issue
b. Goods receipt
c. Transfer order
d. STO
e. Create requisition
Answer: a
Difficulty: Medium
12. Which one of the following activities triggers the shipping step (goods issue) in the
fulfillment process?
a. Goods receipt is posted

b. Availability check is initiated
c. Transfer order is created
d. Picking is completed
e. STO is created
Answer: d
Difficulty: Medium
Section: Fulfillment Process - Shipping
13. Which statement about the production process is TRUE?
a. It is triggered by the WM process.

b. The first step is an availability check.
c. The last step is confirmation.
d. It involves issuing materials to the production order.
e. No FI documents are created.
Answer: d
Difficulty: Medium
Section: General
14. In the procurement process, a purchase requisition is created during which step?
a. Availability check
b. Sales order processing
c. Requirements determination
d. Purchase order processing
e. Source of supply determination
Answer: c
Difficulty: Medium
Section: Procurement process – Initial steps
15. In a plant-to-plant movement, 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.
Answer: a
Difficulty: Medium
16. Calculate the financial effect 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.
Answer: d
17. What is the FI effect of a goods receipt posting in the external procurement 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
Answer: c
Difficulty: Medium
18. What is the general ledger impact when a vendor invoice is received and verified?
a. Debit GR/IR, credit vendor subledger account

b. Debit inventory, credit GR/IR
c. Debit vendor subledger account, credit COGS
d. Debit inventory, credit vendor subledger account
e. Debit vendor subledger account, debit GR/IR
Answer: a
Difficulty: Medium
19. What is the general ledger impact when a transfer requirement is created in the
warehouse management process?

c. Debit inventory, credit GR/IR
d. Debit and credit to the inventory account
e. There is no impact on the GL.
Answer: e
Difficulty: Easy
20. In WM steps related to fulfillment, a transfer order is created based on a(n)
a. Purchase order.
b. Goods issue.
c. Delivery document.
d. Goods receipt.
e. STO.
Answer: c
Difficulty: Medium
Section: Warehouse Management Steps Related to Fulfillment
21. What is the general ledger impact of the goods issue step in the fulfillment process?

c. Debit and credit to the inventory account
d. Debit COGS, credit inventory
Answer: d
Difficulty: Medium
22. Calculate the debit and credit for the goods issue step in the fulfillment process, based on
the following data. (Note: You need to pick the right price for this calculation.)
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
Answer: b
Difficulty: Medium
23. What is the GL entry when a company receives a payment from a customer?
a. Debit revenue, credit customer
b. Debit customer, credit revenue
c. Debit bank, credit customer, credit accounts reconciliation account
d. Debit accounts reconciliation account, credit bank
e. Debit accounts reconciliation account, debit customer, credit bank
Answer: c
Difficulty: Medium
24. What is the CO impact in the confirmation step of the production process?
a. Labor costs are transferred from the work centers to the production order.
b. Material costs are debited to the production order as actual costs.
c. The finished goods inventory account is debited.
d. The manufacturing output settlement account is credited.
e. The production order is credited by the value of the finished goods.
Answer: a
25. What is the general ledger impact of the goods receipt step during a stock transfer?

c. Debit and credit to the inventory account
d. Debit COGS, credit inventory
e. There is no GL impact.
Answer: e
Difficulty: Medium
Section: Inventory Management (STO) - Continued
1. Sell-from-stock strategy uses inventory as a buffer between processes to de-couple them

or to make them less dependent on each other.
Answer: True
Difficulty: Easy
2. The warehouse management process always results in the creation of a material

document.
Answer: False
Difficulty: Medium
Section: General
3. The warehouse management process sometimes involves the creation of an FI document.
Answer: False
Difficulty: Medium
4. The confirmation of the transfer order (TO) is executed during the warehouse
management process.
Answer: True
Difficulty: Medium
5. Sales order processing and payment are steps in the procurement process.
Answer: False
Difficulty: Medium
Section: Fulfillment Process – Initial Steps
6. The availability check in the fulfillment process can trigger the procurement process.
Answer: True
Difficulty: Medium
7. Creating a purchase order is a step in the fulfillment process.
Answer: False
Difficulty: Easy
8. The production process can trigger the procurement process.
Answer: True
Difficulty: Easy
Section: General
9. The fulfillment process can trigger the procurement process.
Answer: True
Difficulty: Easy
10. There is a controlling (CO) impact in the billing step of the procurement process.
Answer: False
Difficulty: Medium
Section: General
11. There is a controlling (CO) impact in the goods issue step of the fulfillment process.
Answer: True
Difficulty: Medium
Section: General
12. The goods issue step in in the fulfillment process results in the creation of FI and material
documents and also has a CO impact.
Answer: True
Difficulty: Medium
Section: General
13. The last step of the production process is always goods issue.
Answer: False
Difficulty: Easy
Section: General
14. A purchase requisition is converted to a PO in the purchase order processing step in the
procurement process.
Answer: True
Difficulty: Medium
Section: Procurement Process – Initial steps
15. In external procurement, materials have the status “stock in transit” at the time of the
goods issue step for the receiving plant.
Answer: False
Difficulty: Medium
16. In the internal procurement process, the debits and credits for the GL account postings at
the goods issue step are calculated based on the valuation price at the sending plant.
Answer: True
17. At the time of goods receipt in an internal procurement process, the material document
consists of two lines for each of the plants.
Answer: False
Difficulty: Medium
18. At the time of a goods receipt in an internal procurement process, both material and FI
documents are created.
Answer: False
Difficulty: Medium
19. At the time of a goods receipt in an external procurement process, the material document
consists of a single line item.
Answer: True
Difficulty: Medium
20. When a payment to a vendor is initiated, the bank account will be debited by the amount
of the payment.
Answer: False
Difficulty: Medium
21. No material documents are created during WM processes.
Answer: True
Difficulty: Easy
22. The shipping step involves creating a delivery document.
Answer: True
Difficulty: Easy
23. The delivery document is a request to move materials from one plant to another.
Answer: False
Difficulty: Easy
24. The amount of the debit and credit for the goods issue step in fulfillment is based on
current moving average price of the material.
Answer: True
Difficulty: Medium
25. When a payment from a customer is received, an automatic posting is made to the
accounts receivable reconciliation account.
Answer: True
Difficulty: Medium
26. A goods receipt moves materials from “unrestricted use” to “in transit” status.
Answer: False
Difficulty: Easy
Section: Procurement, Fulfillment, Production and IWM Processes
27. If the storage location is warehouse managed, then a goods receipt will trigger the WM
processes.
Answer: True
Difficulty: Easy
Section: Procurement, Fulfillment, Production and IWM Processes
28. When an invoice from a vendor is received, a credit entry is posted to the GR/IR account.
Answer: True
Difficulty: Medium
Section: Procurement Process – External
29. There is a FI impact at the time of the goods receipt during a stock transfer.
Answer: False
Difficulty: Medium
Section: Inventory Management (STO) - Continued
Chapter 1
Introduction to Business Processes
Multiple Choice Questions

1. Which term refers to business processes that are not executed by a single group or function?
p. Silo Effect
q. Cross-Functional
r. Functional Structure
s. Enterprise Systems
t. Organizational Structure

Section: The Functional Organizational Structure Practice:
2. Which term refers to a system in which workers complete their tasks in separate departments
without regard to the consequences for the other components of the process?
a. ERP Effect
b. Cross-Functional
c. Functional Structure
d. Enterprise Systems
e. Silo Effect

Section: The Functional Organizational Structure: The Silo Effect Practice:
3. Which system supports business processes end to end?
k. Management System
l. Accounting System
m. Enterprise System
n. Functional Structure
o. Document System

Section: The Functional Organizational Structure: The Silo Effect Practice: Yes
4. Which of the following statements about business processes is true?
a. They are executed across multiple functions.

b. They are initiated by some type of trigger.
c. They involve multiple steps.
d. All of the above

Section: Business Processes
5. Which term represents a set of tasks or activities that produce desired outcomes?
k. Business Process
l. Trigger
m. Outcome
n. Enterprise Resource Planning
o. None of the above
Answer: a Difficulty: Easy Page Reference: 4

Section: Business Processes Practice:
6. Which term refers to all of the activities involved in buying or acquiring the materials used
by the organization, such as raw materials needed to make products?
k. Material Planning
l. Procurement Process
m. Production Process
n. Fulfillment Process
o. Lifecycle Data Management

Section: Business Processes Practice: Yes
7. Which process involves the actual creation of the products?

f. Material Planning
g. Procurement Process
h. Production Process
i. Fulfillment Process
j. Lifecycle Data Management

8. Which process uses historical data and sales forecasts to plan which materials will be
procured and produced?
a. Material Planning
b. Procurement Process
c. Production Process
d. Fulfillment Process
e. Lifecycle Data Management

9. Which process supports the design and development of products from the initial product idea
stage through the discontinuation of the product?
f. Material Planning
g. Procurement Process
h. Production Process
i. Fulfillment Process
j. Lifecycle Data Management

10. Which process tracks the financial impact of process steps with the goal of meeting legal
reporting requirements?
k. Human Capital Management (HCM)

l. Project Management
m. Financial Accounting
n. Management Accounting or Controlling (CO)

11. Which process is used to plan and execute large projects such as the construction of a new
factory or the production of complex products such as airplanes?
f. Human Capital Management (HCM)

g. Project Management
h. Financial Accounting
i. Management Accounting or Controlling (CO)
j. None of the above

12. Which process focuses on people within an organization and includes functions such as
recruiting, hiring, training, and benefits management?
f. Human Capital Management (HCM)

g. Project Management
h. Financial Accounting
i. Management Accounting or Controlling (CO)

13. What is the final step of the procurement process?
k. Invoice
l. Purchase Requisition
m. Purchase Order
n. Payment

Section: Business Processes: Procurement-Buy Practice:
14. What steps are involved in the accounting portion of the procurement process?
f. Receiving the materials and the invoice

g. Creating the purchase requisition and sending payment
h. Creating and sending the purchase order
i. Creating the purchase requisition and receiving the materials
j. Receiving the invoice and sending payment
Answer: e Difficulty: Difficult Page Reference: 7

Section: Business Processes: Procurement-Buy Practice: Yes
15. What is the first step of the production process?

k. Authorize Production
l. Request Production
m. Create Product
n. Receive Finished Goods
o. Issue Raw Materials

Section: Business Processes: Procurement-Make Practice: Yes
16. What function does the warehouse perform in the fulfillment process?
f. Prepares and sends the shipment to the customer

g. Communicates data related to the order to other parts of the organization
h. Tracks the order
i. Notifies the customer
Answer: a Difficulty: Easy Page Reference: 8

Section: Business Processes: Procurement-Make Practice: Yes
17. ___________ is concerned with matching the demand for materials in the organization with
the supply.
k. Business Planning
l. The Silo Effect
m. Project Management
n. Material Planning

Section: Business Processes: Material Planning-Plan Practice:
18. Which of the following is concerned with the storage and movement of materials?
a. Business Planning
b. Silo Effect
c. Project Management
d. Material Planning
e. Inventory and warehouse management (IWM)

Section: Business Processes: Inventory and Warehouse Management-Store
Practice:
19. _____________enables an organization to optimize its product development process, from
design to market, while ensuring that it complies with industry, quality, and regulatory
standards?
a. Business Planning
b. Lifecycle Data Management

Section: Business Processes: Lifecycle Data Management-Design Practice:
20. _____________ provides tools to manage and store documents securely and to keep track of
the multiple versions of these documents?
a. Document Management
b. Enterprise Management

21. How does GBI Global sell its merchandise?
a. Directly to customers
b. Via a network of specialized dealers
c. Via the Internet
d. All of the above

Section: Global Bicycle Incorporated (GBI) Practice: Yes
22. Which of the following statements about SAP R/3 is true?
a. It supports a single function or department

b. It is an end-to-end enterprise system
c. Sharing data between departments is problematic
d. None of the above

Section: How to use this book: SAP Software and Certification Practice: Yes
Multiple Answer Questions

1. Within the financial structure, typical functions or departments found in a modern
organization include which of the following?
u. purchasing
v. operations
w. internships
x. finance
y. marketing
Answer: a, b, d, e Difficulty: Medium Page Reference: 1

Section: The Functional Organizational Structure Practice: Yes
2. Which of the following are steps within a generic business process of an organization?
k. Payment
l. Trigger
m. Shipment
n. Outcome
o. Confirmation
Answer: b, d Difficulty: Difficult Page Reference: 4

3. Which processes have an impact on an organization’s finances?
p. Financial accounting processes

q. Project management processes
r. Management accounting or controlling processes
s. Material planning process
t. Procurement process
Answer: a, c Difficulty: Medium Page Reference: 6

4. Which processes focus primarily on people and projects?
p. Financial accounting processes

q. Procurement process
r. Production process
s. Human capital management processes
t. Project management processes
Answer: d, e Difficulty: Medium Page Reference: 6

5. Which of the following are components of the procurement process?
p. Warehouse
q. Purchasing
r. Sales
s. Operations
t. Accounting

Section: Business Processes: Production-Make Practice: Yes
6. Which of the following are components of the production (make) process?
f. Sales
g. Operations
h. Warehouse
i. Accounting
j. Production
Answer: c, e Difficulty: Medium Page Reference: 7

Section: Business Processes: Production-Make Practice:
7. Which of the following are components of the fulfillment (sell) process?
a. Sales
b. Operations
c. Warehouse
d. Accounting
e. Production

Section: Business Processes: Fulfillment-Sell Practice:
8. The term materials encompasses which of the following?
f. Products
g. Components
h. Parts
i. Anything used in an organization
j. Accounting
Answer: a, b, c, d Difficulty: Medium Page Reference: 8

Section: Business Processes: Fulfillment-Sell Practice:
9. Which of the following activities are related to the production process?
f. Request materials
g. Store materials
h. Locate Materials
i. Issue Materials
j. Receive Payment

Section: Business Processes: Inventory and Warehouse Management-Store Practice:
10. Which of the following activities are related to the procurement process?
f. Issue Materials
g. Receive Materials
h. Prepare for Storage
i. Store Materials
j. Locate Materials

11. Which of the following activities are related to the fulfillment process?
a. Locate Materials
b. Prepare Shipment
c. Prepare for Storage
d. Store Materials
e. Ship to Customer

Section: Business Processes: Inventory and Warehouse Management-Store Practice: Yes
12. Which of the following are components of the lifecycle data management process?
f. Engineering
g. Marketing
h. Accounting
i. Production
j. Sales

13. Which departments take part in the conception of an idea?
f. Accounting
g. Production
h. Engineering
i. Sales
j. Marketing
Answer: c, e Difficulty: Medium Page Reference: 10

14. In which elements of the lifecycle data management process does marketing play a role?
f. Design
g. Conceive product ideas
h. Make
i. Marketing & service
j. Discontinue product
Answer: c, d, e Difficulty: Easy Page Reference: 10

15. In which components of the asset management process is production involved?
f. Settlement
g. Perform maintenance
h. Authorize maintenance
i. Request maintenance
j. Perform service

Section: Business Processes: Asset Management and Customer Service-Service Practice:
16. Sales is involved in which steps in the customer service process?
f. Perform service
g. Create service request
h. Settlement
i. Authorize service
j. Request maintenance
Answer: b, d Difficulty: Medium Page Reference: 11

Section: Business Processes: Human Capital Management-People Practice:
17. What part of the project management process is within the various functional areas?
f. Budgeting
g. Execution
h. Settlement
i. Planning

Section: Business Processes: Project Management-Projects Practice: Yes
18. Which of the following products fall(s) within GBI’s line of business?
a. Deluxe and professional touring bikes

b. Men and women’s off-road bikes
c. Motor bikes
d. Bike accessories

Section: Global Bicycle Incorporated (GBI) Practice: Yes
19. What is true about SAP R/3?
a. Supports a single function or department

b. Executes every process from start to finish
c. Consolidates process data in a single database
d. Enables users to view the status of a process in real time

Section: How to use this book: SAP Software and Certification Practice: Yes
True-False
1. The most common organizational structure within modern organizations is the functional
structure.
Section: The Functional Organizational Structure Practice:
2. Losing sight of the big picture is commonly referred to as the silo effect.

Section: The Functional Organizational Structure: The Silo Effect Practice:
3. Systems that support end-to-end processes are called business processes.

4. An enterprise system is a set of tasks or activities that produce desired outcomes.

Section: The Functional Organizational Structure: Enterprise Systems Practice:
5. Without the various steps of the business process, a company can’t successfully bill
customers and ship products.

6. The lifecycle data management (design) process supports the design and development of
products from the initial product idea stage through the discontinuation of the product.

7. The material planning process is used to maintain internal assets such as machinery and to
delivery after-sales customer services such as repairs.

8. The fulfillment process (sell) consists of all the steps involved in selling and delivering the
products to the organization’s customers.

9. The financial accounting process focuses on internal reporting to manage costs and revenues.

10. The procurement process includes all of the tasks involved in acquiring needed materials.

Section: Business Processes: Procurement-Buy Practice:
11. Within the production process, the issuing of raw materials takes place in the warehouse.

Section: Business Processes: Procurement-Make Practice:
12. Materials encompass all the products, components, and parts that are used in an organization.

13. Lead time is the time between placing the order and receiving confirmation that the item has
been shipped.

14. The purpose of material planning is to match supply with demand.

15. Insufficient supply results in a situation called “stock out.”

16. Excess supply will result in lower inventory costs because the company is eligible for a bulk
rate.

17. Forecasts of finished goods are determined by data from material planning.

18. Large warehouses do not need to move items as quickly and efficiently as smaller
warehouses.

19. Asset management is concerned with both the preventive and the corrective maintenance of
an organization’s equipment.

20. Document management provides tools to manage and store documents securely and to keep
track of the multiple versions of these documents.

21. The final stage of asset management and customer service is the authorization maintenance
stage.

22. The final stage of the customer service process is the settlement stage.

23. A project is permanent in nature and is typically associated with smaller, simpler projects.

Section: Business Processes: Project Management-Projects Practice:
24. During the planning phase of a project the scope of the project is defined and the milestones
and deadlines are established.

25. Projects rely on resources located in and work performed in other processes.

26. Common reports of financial accounting include income statement, profit and loss, and
balance sheet.

Section: Business Processes: Financial Accounting-Track for External Reporting
Practice:
27. Accounts payable is used to track money owed by customers.

Practice:
28. Asset accounting is concerned with tracking financial data related to assets such as
machinery and cars.

Practice:
29. Accounts receivable is used to track money that is owed to vendors.

Practice:
30. Management accounting helps an organization track costs and revenues to assess its
profitability

Section: Business Processes: Management Accounting-Track for Internal Reporting
Practice:

CH 01

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CH 01

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Chapter 2

Introduction to SAP ERP

Answer: True Difficulty: Medium Page Reference: 1

Answer: False Difficulty: Medium Page Reference: 1

Answer: True Difficulty: Medium Page Reference: 2

Answer: True Difficulty: Easy Page Reference: 2

5. Service-oriented architecture (SOA) is the fundamental concept behind systems connecting

Answer: True Difficulty: Difficult Page Reference: 2

6. Enterprise resource planning (ERP) focuses on the internal operations of an organization.

Answer: True Difficulty: Medium Page Reference: 3

7. Inter-company processes take place within a single company.

Answer: False Difficulty: Medium Page Reference: 4

Answer: False Difficulty: Medium Page Reference: 4

Answer: True Difficulty: Medium Page Reference: 5

Answer: False Difficulty: Easy Page Reference: 6

Answer: True Difficulty: Medium Page Reference: 6

13. Organizational data are used to represent the structure of an enterprise.

Answer: True Difficulty: Easy Page Reference: 6

14. A company code is the highest organizational level in SAP ERP.

Answer: False Difficulty: Medium Page Reference: 7

15. A client represents each company within an enterprise.

Answer: False Difficulty: Easy Page Reference: 7

Answer: False Difficulty: Medium Page Reference: 7

17. A building can house only a single plant.

Answer: False Difficulty: Difficult Page Reference: 8

Answer: True Difficulty: Medium Page Reference: 8

Answer: False Difficulty: Medium Page Reference: 8

Answer: True Difficulty: Medium Page Reference: 8

Answer: True Difficulty: Medium Page Reference: 9

Answer: False Difficulty: Difficult Page Reference: 9

Answer: True Difficulty: Easy Page Reference: 10

Answer: False Difficulty: Medium Page Reference: 10

25. Transaction data reflect the consequences of executing process steps.

Answer: True Difficulty: Medium Page Reference: 12

Answer: True Difficulty: Medium Page Reference: 13

Answer: False Difficulty: Medium Page Reference: 14

Answer: False Difficulty: Medium Page Reference: 15

Answer: True Difficulty: Medium Page Reference: 16

Answer: False Difficulty: Medium Page Reference: 17

Package Title: Test bank

Question type: Multiple Choice

1. ____________ is concerned with recording the financial impacts of business processes as

2. Which of the following is a key process in financial accounting?

3. Which process is used to manage money owed by

a. General ledger accounting

a. Bank ledger accounting

a. Financial accounting document

a. Financial accounting document

15. Which type of asset has a physical form?

16. Which type of asset has a non-physical form?

a. Acquiring internally via the production process

Question type: Multiple Answers

23. An organization can possess which of the following types of assets?

24. Tangible assets can include which of the following?

a. Posting goods issue

29. From which of the following can financial statements be generated?

a. Operative chart of accounts

30. What is true about a business area?

31. Which of the following are types of chart of accounts?

32. What does the COA data include?

34. Which of the following does the balance sheet include?

38. Which attributes are present in the FI document header?