the production process

Question 1

describe the start and end goal of the production process

Answer 1

begins with a request for goods and results in the payment of cash

Question 2

describe the production process

Answer 2

• request for the good or service
• order good or service
• receive and inspect good or service
• store and maintain good
• maintain vendor records
• pay for goods
• return of goods
• forecast future purchases and cash outflows

Question 3

describe the activities involved in the production process

Answer 3

• purchase request
• order the goods
• receive the goods
• approve payments
• make the payment

Question 4

list the inputs to the production process

Answer 4

• purchase requisition
• purchase order
• vendor invoice
• packing slip
• bill of lading
• receiving report

Question 5

describe the purchase request

Answer 5

it is an input

• identifies item requested
• may indicate the name of the vendor

Question 6

describe the purchase order

Answer 6

it is an input

• based on purchase request
• includes vendor information

Question 7

describe the vendor invoice

Answer 7

it is an input

- includes pricing, shipping terms and discounts

Question 8

describe packing slip

Answer 8

it is an input

• details the specific goods and quantities in the delivery
• included in merchandise packing

Question 9

describe bill of lading

Answer 9

it is an input

• accompanies the goods sent
• carrier assumes responsibility of the goods

Question 10

describing receiving report

Answer 10

it is an input

- details the number of goods and the conditions

Question 11

list the outputs of the production process

Answer 11

• financial statement information
• vendor checks
• check register
• discrepancy reports
• cash requirements forecast

Question 12

describe vendor checks

Answer 12

it is an output

• supported by a voucher
• signed by a person designated by management

Question 13

describe check registers

Answer 13

it is an output

• list of all checks issued over a period of time
• by-product of batch processing

Question 14

describe discrepancy reports

Answer 14

it is an output

• notes the differences in quantities and amounts
• based on reconciliation of purchase order, receiving report and the purchase invoice

Question 15

describe cash requirement forecast

Answer 15

it is an output

• predicts future payments and payment dates
• uses multiple source documents