Question 1

A goods receipt cannot be posted without reference to an order.

Accepted Answer

A) True 
 B)False

Question 2

Transfer orders can only be created automatically.

Accepted Answer

A) True 
 B)False

Question 3

Transfer orders are used to execute warehouse movements.

Accepted Answer

A) True 
 B)False

Question 4

In the production process,a goods issue reflects

Accepted Answer

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.F) B) and E)
G) B) and C)

Question 5

The key organizational level associated with inventory management is

Accepted Answer

A)  Plant.
B)  Company code.
C)  Storage section.
D)  Storage area.
E)  Storage location.F) C) and D)
G) A) and E)

Question 6

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

Accepted Answer

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 areasF) B) and C)
G) A) and D)

Question 7

The ERP system can create transfer orders automatically,but only when

Accepted Answer

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.F) C) and D)
G) B) and E)

Question 8

Which of the following are examples of limitations of using a stock transfer to move materials from one plant to another?

Accepted Answer

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.F) None of the above
G) All of the above

Question 9

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

Accepted Answer

A)  Transfer list
B)  Transfer request
C)  Transfer plan
D)  Transfer order
E)  Transfer requirementF) B) and E)
G) C) and E)

Question 10

Inventory management in the production process involves a goods issue and a goods receipt.

Accepted Answer

A) True 
 B)False

Question 11

One-step procedure,two-step procedure,and stock transport order are strategies for moving materials.

Accepted Answer

A) True 
 B)False

Question 12

Stock transport orders with delivery include the invoice verification step.

Accepted Answer

A) True 
 B)False

Question 13

Warehouse management is typically used

Accepted Answer

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.F) None of the above
G) A) and B)

Question 14

Examples of reference documents for a transfer order are

Accepted Answer

A)  Transfer requirement.
B)  Change request.
C)  Storage location request.
D)  Material document.
E)  Delivery documentF) A) and C)
G) A) and E)

Question 15

What is a stock transfer used for?

Accepted Answer

A)  To change the status or type of materials in stock
B)  To show material movements when a material is received in the warehouse from the vendor's location
C)  To indicate that a material-to-material change has been posted
D)  To physically move materials from a storage location to the client's warehouse
E)  To physically move materials within the enterprise from one organizational level or location to anotherF) A) and E)
G) A) and D)

Question 16

A storage type is a division of a warehouse based on the characteristics of the

Accepted Answer

A)  Weight,width,and type
B)  Dimensions and profitability.
C)  Space,materials,and activity.
D)  Price,space,and type.
E)  Usage,price,and dimensions.F) A) and D)
G) A) and E)

Question 17

Which of the following typically are sources of a transfer requirement for warehouse movement?

Accepted Answer

A)  Invoice
B)  Delivery document
C)  Production order
D)  Purchase order
E)  Material documentF) C) and D)
G) B) and E)

Question 18

Which of the following represents a possible sequence of steps in the warehouse movement process?

Accepted Answer

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 movementF) None of the above
G) B) and E)

Question 19

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?

Accepted Answer

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.
E)  None of the aboveF) B) and D)
G) All of the above

Question 20

Shelf storage is an example of a storage type

Accepted Answer

A) True 
 B)False

Exam 7: Inventory and Warehouse Management Processes

Stock transport orders with delivery include the invoice verification step.

Correct AnswerverifiedShow Answer

What is a stock transfer used for?

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Which of the following typically are sources of a transfer requirement for warehouse movement?

Correct AnswerverifiedShow Answer

Which of the following are examples of limitations of using a stock transfer to move materials from one plant to another?

Correct AnswerverifiedShow Answer

Shelf storage is an example of a storage type

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Examples of reference documents for a transfer order are

Correct AnswerverifiedShow Answer

The key organizational level associated with inventory management is

Correct AnswerverifiedShow Answer

Transfer orders can only be created automatically.

Correct AnswerverifiedShow Answer

One-step procedure,two-step procedure,and stock transport order are strategies for moving materials.

Correct AnswerverifiedShow Answer

Inventory management in the production process involves a goods issue and a goods receipt.

Correct AnswerverifiedShow Answer

The ERP system can create transfer orders automatically,but only when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following represents a possible sequence of steps in the warehouse movement process?

Correct AnswerverifiedShow Answer

A goods receipt cannot be posted without reference to an order.

Correct AnswerverifiedShow Answer

Transfer orders are used to execute warehouse movements.

Correct AnswerverifiedShow Answer

A storage type is a division of a warehouse based on the characteristics of the

Correct AnswerverifiedShow Answer

Warehouse management is typically used

Correct AnswerverifiedShow Answer

In the production process,a goods issue reflects

Correct AnswerverifiedShow Answer

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