Integrated Business Processes With ERP Systems 1st Edition by Simha R Magal Test

Chapter 6
Package Title: Test bank
Course Title: The Production Process
Question type: Multiple Answers
1. Which one of the following are key organizational data relevant to the production process?
a. Company code
b. Credit control area
c. Client
d. Storage location
e. Plant
Answer: a, c, d, e
Difficulty: Moderate
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
Difficulty: Difficult
Section Reference: Master Data
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
Section Reference: Master Data – Material Master
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. A production order typically includes references to which of the following?

a. BOM
b. Routing
c. Work centers
d. Sales order
e. PRT
Answer: a, b. c, e
Section Reference: Process – Authorize Production
13. 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
14. 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
15. 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
16. 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
e. None of the above
Answer: a, b, c
Section Reference: Process – Order Release
17. 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
Section Reference: Reporting
Question type: Multiple Choice
1. Which one of the following is NOT a type of organizational data relevant to the production
process?
a. Company code
b. Credit control area
c. Client
d. Storage location
e. Plant
Answer: b
1. 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
20. 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

21. All of the following can serve as a work center except
a. A group of machines
b. A group of people responsible for completing operations
c. A production line
d. A work area
e. A shipping dock
Answer: e
22. 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
23. 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
24. 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
25. 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
Section Reference: Master Data – Material Master
26. 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
Section Reference: Process
27. 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
28. 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
29. 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
30. 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
31. 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
32. 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
33. 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
Section Reference: Process
34. 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
Section Reference: Reporting
Question type: True or False
35. A bill of materials identifies the finished goods that are to be shipped to a specific customer.
Answer: False
Difficulty: Easy
36. An active bill of materials can be used in the production of a material, but an inactive BOM
cannot.
Answer: True
Difficulty: Easy
37. A work center is a location where materials are placed immediately before they are shipped.
Answer: False
Difficulty: Easy
38. All operations must be performed in some type of sequence, and many operations can be
completed in a variety of sequences.
Answer: True
39. Fixed time elements represent the time needed to produce one unit of material.
Answer: False
40. Variable time elements are independent of how many units of material are produced.
Answer: False
41. Material staging is the process in which component materials are moved from storage and
prepared for use.
Answer: True
42. 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
43. Production resource tools are movable resources that are shared among different work centers.
Answer: True
Section Reference: Master Data – Product Resource Tools
44. Typically a production order does not include any references to the BOM, routing, or work
centers.
Answer: False
Section Reference: Authorize Production

45. 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
46. 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
47. 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
48. A time ticket is used to record the amount of time required to complete various operations
Answer: True
Difficulty: Easy
49. Material staging is a technique that is used to automatically record the goods issue when an
order is confirmed
Answer: False
50. Periodic processing is also known as period-end closing

Answer: True
Section Reference: Process – Periodic Processing
51. Overhead allocation, work in process determination, and order settlement are all included in
periodic processing
Answer: True
Section Reference: Process – Periodic Processing
52. 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
Chapter 7
Package Title: Test bank
Course Title: Inventory and Warehouse Management Processes
Question type: Multiple-Answer
1. Which of the following are examples of goods movements?
a. Move posting
b. Stock transfer
c. Stock movement confirmation
d. Goods issue
e. 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?
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?
a. It results in a decrease in inventory.

b. It can occur during the procurement process.
c. It can result in the creation of material and financial accounting documents.
d. Materials are placed in an appropriate storage location with an appropriate status.
e. 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.
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?
a. When an invoice has been canceled

b. When material is transferred to another location
c. When a reference document does not exist
d. When a stock transfer is created
e. 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?
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
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.
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.
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
1. A destination is known.
2. The reference document is a transfer requirement
3. A warehouse movement type is specified.
4. A reference document exists.
5. 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
Question type: True or False
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 transfers
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

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Chapter 6

Package Title: Test bank

Course Title: The Production Process

Question type: Multiple Answers

Section Reference: Introduction

2. The master data relevant to the production process are

Section Reference: Master Data

3. Which of the following are statuses that can apply to a BOM?

4. What are the basic time elements in the production process?

Section Reference: Master Data – Product Routing

5. Which of the following can be included in processing time?

Section Reference: Master Data – Work Center

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Material Master

8. Examples of production resource tools are

Section Reference: Master Data – Production Resource Tools

9. A planned order is a formal request that indicates

Section Reference: Process – Request Production

Section Reference: Process – Request Production

12. A production order typically includes references to which of the following?

Section Reference: Process – Authorize Production

Section Reference: Process – Authorize Production

14. What data are included in a confirmation?

Section Reference: Process – Confirmations

15. Which user inputs are included in a goods receipt?

Section Reference: Process – Goods Receipt

16. SAP ERP systems can communicate with

Section Reference: Process – Order Release

17. What does a stock requirement list contain?

Question type: Multiple Choice

Section Reference: Introduction

Section Reference: Master Data – Bill of Material

20. Which one of the following best describes a work center?

Section Reference: Master Data – Work Center

Section Reference: Master Data – Work Center

Section Reference: Master Data – Product Routing

23. Which one of the following best defines material staging?

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Bill of Materials

Section Reference: Master Data – Material Master

26. Which of the following is not a step in the production process?

Section Reference: Process

Section Reference: Introduction

28. Which of the following does a routing identify on a production order?

Section Reference: Process – Authorization Production

Section Reference: Process – Confirmations

Section Reference: Process – Moderate

Section Reference: Master Data – Product Routing

Section Reference: Process – Goods Issue

Section Reference: Process

34. Which of the following is an important report in the production process?

Section Reference: Reporting

Question type: True or False

Section Reference: Master Data – Bill of Material

Section Reference: Master Data – Bill of Material

Section Reference: Master Data – Work Center

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Product Routing

Section Reference: Master Data – Product Resource Tools

Section Reference: Authorize Production