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NEW QUESTION: 1

A. Option B
B. Option A
C. Option C
D. Option D
Answer: C

NEW QUESTION: 2
A manufacturer uses a materials requirements planning 1RP) system to track inventory, orders, and raw material requirements. A preliminary audit assessment indicates that the organization's inventory is understated. Using audit software, what conditions should the auditor search for in the MRP database to support this hypothesis?
I. Item cost set at zero.
II. Negative quantities on hand.
III. Order quantity exceeding requirements.
IV.
Inventory lead times exceeding delivery schedule.
A. II and I only.
B. III and I only.
C. I and I only.
D. I and II only.
Answer: D
Explanation:
If there is no monetary amount in the database for existing inventory, inventory will be understated. Moreover, inadequate edit checks or uncontrolled borrow/paybacks could cause negative quantities to be reported. This condition would cause inventory to be understated. If the amount ordered exceeds requirements, the result is an increase in inventory. However, by itself, this condition would not cause inventory to be understated or overstated. Also, if lead times are longer than delivery times, the effect is an increase in inventory but not necessarily a misstatement.

NEW QUESTION: 3
Which actions does the system perform by default when you save a confirmation for a finished product in repetitive manufacturing? Note: There are 3 correct answers to this question.
A. Posting of goods receipt for the product
B. Material staging for next order in sequence
C. Reduction of associated capacity requirements
D. Archiving of documents for assembly scrap
E. Posting of production costs to the production cost collector
Answer: A,C,E