Chapter 07 Conversion Business Process
True / False Questions 1. Conversi Conversion on labor labor costs costs become become part part of cost of goods goods sold. sold. True True
False
2. Gatea!s Gatea!s can can direct direct se"uen se"uence ce #o to to support support looping. looping. True True
False
$. Business rules describe appropriate appropriate actions actions to ta%e based on process conditions. True True
False
&. 'pplication controls limit access access to vieing and changing changing records records in a s!stem. True True
False
(. ' labor plan class class ould establi establish sh standard standard overhead overhead alloca allocation tion rates. rates. True True
False
).
The primar! primar! %e! of the Production Production 'uthori*ation 'uthori*ation table ould ould be posted in the Production +teps table as a foreign %e!. True True
False
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7.
The primar! primar! %e! of the ,mplo!ees table ould be posted in the Production Production +teps table as a foreign %e!. True True
False
-.
The primar! primar! %e! of the Production Production +teps table table ould be posted in the Production Production Plan table as a foreign %e!. True True
False
.
The lin% beteen beteen the Products Products and and Production Production Plan tables tables ould be be implemented as a lin%ing table. True True
False
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10.
The lin% beteen beteen the Production Production Plan Plan and /aterials /aterials tables tables ould be implemented as as a lin%ing table. True True
False
Multiple Choice Questions 11. hich of the folloing t!pes of business is least least li%el! to emplo! a conversion conversion process
'. estaura nt B. etail store C. Ba%er ! 3. /achine shop 12. hich of the folloing is not a basic activit! in the conversion conversion process process
'. 4ssue ra material B. Perform Perform or% and account for labor C. +hip products to stores 3. 'uthori*e production
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1$. hich of the folloing best describes the purpose of an intermediate error error event
'. 3irects se"uence #o hen an activit! aborts B. 3ela!s 3ela!s the se"uence until a speci5ed time C. aits for e6ternal messages 3. ,nds a process 1&. Consider the folloing BP/ BP/ diagram of a subprocess. subprocess. hich of the folloing is re"uired to correct an error in the diagram
'. Change the intermediate event to a start event. B. Change the intermediate error event to an e6clusive gatea! C. 'dd a se"uence #o to an end event after the discard errors activit!. activit!. 3. 3rop the activit! named 3iscard ,rrors. 1(. hich of the folloing is the best reason reason that a collaboration model ould not be used to diagram the conversion process process
'. 'll conversion activities are internal to the organi*ation. B. ' collaboration model does not include simlanes. C. The orchestration orchestration of the activities is not shon in a collaboration model. 3. The choreograph! beteen pools is not shon in a collaboration model. 1). hich of the folloing least re#ects re#ects the purpose of a business rule rule in the conversion process
'. +egregating authori*ing8 issuing8 and conversion or% duties B. 9imiting ho can vie and change records in the s!stem C. ,nsuring no production ithout a customer order 3. 'ssuring that all products meet "ualit! standards
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17. 4n a basic :/9 diagram of the conversion process8 process8 hich of the folloing best describes the purpose of a dualit! association
'. +hos +hos the participation of emplo!ees in the process. B. 9in%s 9in%s or% in process events to the original production authori*ation. C. 4ndicates issue of ra material into the process. 3. Trac%s completion of or% in process and increase to 5nished goods inventor!. 1-. evie evie the folloing diagram. hich anser provides provides the best interpretation interpretation of the multiplicities multiplicities for the association beteen the ,mplo!ees and Production 'uthori*ation classes
'. The emplo!ee records the completion of a ;ob and updates 5nished goods. B. ,ach ,ach production authori*ation results results in the increase to the "uantit! on hand of one product. C. ,mplo!ees manage multiple products. 3.
'. The emplo!ee records the completion of a ;ob and updates 5nished goods. B. ,ach production authori*ation is related to one product. C. ,ach product is related to one production authori*ation. 3.
'. 9in%s each ra material item to one or more 5nished good items. B. +hos +hos the issues of ra material items into or% in process. C. 9in%s 5nished goods to production. 3. +hos +hos the ra material usage variance.
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Essay Questions
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21. 4ntegrat 4ntegrated ed Case +erena=s Tennis Togs8 4nc.8 as founded b! one of the orld famous omen=s tennis pla!ers to produce tennis and other sports clothing for the man! omen that appreciate +erena=s uni"ue fashion sense. +erena=s Tennis Togs8 4nc. >+TT4? ma%es and mar%ets multiple t!pes of recreational clothing lines for omen. This case focuses on +TT4=s ac"uisition@pa!ment ac"uisition@pa!ment and conversion processes. processes. +TT4 Conversion c!cle. hen +TT4 gets an order from one of their distributors >sales orders are not modeled in this case?8 a manufacturing supervisor issues one or more production orders to authori*e production of the clothing items. ,ach production order applies to onl! one 5nished clothing item. For cost accounting purposes8 +TT4 determines the total standard labor and material cost for each production order. +TT4 has carefull! planned the material and labor re"uired for each of its 5nished clothing items. 4ts master assembl! plan speci5es the se"uence of steps >assembl! operations? as ell as the ra materials re"uired to produce each 5nished clothing item. The master assembl! plan also speci5es the standard labor and material cost for each step. ,ach step in the master assembl! plan is identi5ed ith a master assembl! number. The actual manufacturing process occurs in a series of assembl! steps steps >each step step is identi5ed b! control A in the production control records?. ,ach step ma! use several t!pes of material. +TT4 trac%s the actual material and labor costs for each step in their production control records. +TT4 also trac%s the total standard and actual costs for each production order. The +TT4 manufacturing manufacturing process process emplo!s to classes of emplo!ees crafters crafters and and supervisors >model separatel!?. Crafters Crafters get the ra materials from inventor! and use them in the assembl! steps. ,ach assembl! step ma! involve several crafters8 and crafters ma! or% on several assembl! steps. The crafters crafters are are paid on an an hourl! basis. basis. Production Production supervisors supervisors are are paid salaries salaries and bonuses. >/odel them separatel!?. separatel!?. +TT4 Purchases. Purchases. +TT4=s 5nancial success depends on the "ualit! of their products8 so the compan! bu!s onl! the highest "ualit! ra materials and follos a structured structured ac"uisition process. First8 the bu!ers issue purchase orders to vendors for one or more re"uired ra material items. +econd8 the vendor ships the products to +TT48 and +TT4 records purchases upon receipt and acceptance of the items. 4n some cases8 vendors ful5ll several purchase orders ith one shipment. +TT4 ta%es advantage of all prompt pa!ment discounts. 4f multiple vouchers are due to the same vendor on a certain da!8 the cashier combines those into one pa!ment. +TT4 pa!s for each purchase in full8 less an! applicable discount8 on the da! that the pa!ment is due. 'fter receipt and acceptance8 each ra material item is stored in its designated bin to facilitate its issue to the production process8 process8 although each bin ma! hold several dierent t!pes of ra material. ,ach bin is colorDcoded for eas! identi5cation. General. 'll economic agents8 resources8 and t!pes are put into the database before an! relationships ith other entities are instantiated. +TT4 trac%s its emplo!ees in separate classes according to their particular ;ob8 although each internal agent is %e!ed b! emplo!eeA. >+o8 don=t model one ,mplo!ee agentE model separate internal 7-7 Copyright © 2014 McGraw-Hill Education. All rights rsr!d. "o rproduction or distri#ution without th prior writtn consnt o$ McGraw-Hill Education.
agents8 e.g.8 bu!ers8 crafters8 cashiers8 supervisors.? REQUIRED REQUIRED 1? use the information above and the list of attributes belo to dra a :/9 class diagram shoing the classes8 associations8 and multiplicities8 2? prepare a listing of the tables necessar! to support +TT4=s processes using all the attributes. ame each table and clearl! identif! primar! %e!s ith P and foreign %e!s ith F. 9ist !our tables in the folloing order ,+<:C,+8 ,,T+8 'G,T+8 THP, 4/'G,+8 and 944G. :se onl! the folloing list of attributes >remember >remember that there should be no classes ithout attributes?. 'ttributes
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22. 4ntegrat 4ntegrated ed Case Gar! Cooper >!es D that is his real name8 and his nic%name is Coop? loves classic cars8 but he %nos he ill never be able to aord most of them. Ie also %nos that most classics are unreliable and e6pensive to on. Plus8 the! do not have the features and comforts of modern cars. +o8 he created a compan! that constructs custom replicas replicas of classic cars. Iis replicas have modern mechanical parts and man! of the features that can be found in toda!s= cars. /ore importantl!8 importantl!8 the! meet modern safet! and emission re"uirements. This case describes Coop=s sales and sales and production production processes. processes. Coop=s Cars Coop developed a list of replicas for the most soughtDafter classic cars. Ie sells replica ,uropean +ports Cars8 such as Porsche8 Ferrari8 and Jaguar8 as ell as some 'merican muscle cars. Coop trac%s each car8 engine8 and color combination ith a custom car product number. The customer gets to select among the various engine and color options for his@her car. Customers t!picall! order one car >one product number?8 but some customers love the cars so much that the! order several at once. Customers must provide at least a 2(K deposit ith the order8 but the! can pa! the balance after the! ta%e deliver! of the car. Car chassis Coop maintains an inventor! of car chassis ith bod! shells8 interior8 seats8 etc. Conse"uentl!8 Conse"uentl!8 he can deliver a custom car in ;ust a fe da!s. hen the inventor! of car chassis gets lo8 an emplo!ee issues a chassis production order. The chassis assembl! plan describes the speci5c parts that go into each chassis as ell as the speci5c chassis assembl! operations re"uired. Coop=s emplo!ees then conduct the assembl! operations to assemble the ne chassis. Customi*ing 'fter the customer places an order and selects the chassis8 engine8 and color combination8 Coop=s emplo!ees start the customi*ing operations. The engine is placed in the car and the car is painted. Then8 after some initial testing8 the car is placed in inventor!8 read! for deliver! to the customer. 'lthough several emplo!ees or% on the customi*ing operations8 Coop also designates one emplo!ee to supervise the process and assure a high "ualit! 5nished car. /iscellaneous Coop %eeps all his emplo!ee records in one table8 but he also categori*es emplo!ees according to their specialt!. Ie records information about emplo!ees8 customers8 emplo!ee t!pes8 custom cars8 and classic parts before the! are lin%ed to other classes. REQUIRED REQUIRED 1? use the information above and the list of attributes belo to dra a :/9 class diagram shoing the classes8 associations8 and multiplicities8 2? prepare a listing of the tables necessar! to support Coop=s processes using all the attributes. ame each table and clearl! identif! primar! %e!s ith P and foreign %e!s ith F. 9ist !our tables in the folloing order ,+<:C,+8 ,,T+8 'G,T+8 THP, 4/'G,+8 and 944G. :se onl! the folloing list of attributes >remember >remember that there should be no classes ithout attributes?. 'ttributes
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2$. Correct Correct the BP/ 'ctivit! 3iagram 3iagram 'fter a ver! successful career in business8 a! obertson decided to leave the ratD race to pursue his lifeDlong >adult lifeDlong? interest in breing uni"ue8 handDcrafted beers. Ie anted his business to re#ect his passions beer8 football8 and the
The availabilit! of an! bottled beer depends on hat Hello 3uc% has breed recentl! and the bottles on hand.? Hello 3uc% bottles its beers hen a customer service emplo!ee receives an order for one or more bottled beer products from a customer. Hello Hello 3uc% records records the sale hen the customer customer pic%s up up the beer from from the customer customer service emplo!ee. Hello 3uc% onl! sells its beer to holesale customers8 so each customer pa!s for all the sales during the month in one pa!ment at the end of the month. Hello Hello 3uc% Bottling Process Process Hello Hello 3uc% sells its beer beer in distinctive distinctive bottles8 bottles8 designed b! b! local artists8 artists8 to stand stand out from more mundane beers. The bottling process ta%es place in a series of steps. ,ach step is authori*ed b! a supervising emplo!ee and also involves several other emplo!ees ho carefull! transfer breed breed beer into the bottles8 appl! the labels8 and place the bottles in the bottled beer inventor!. 't that point the beer is read! for sale to the customer. ,ach bottling step involves onl! one particular bottle number but ma! involve several dierent breed beers. REQUIRED REQUIRED :sing the description above8 correct correct the BP/ activit! diagram ith shon belo so that the diagram accuratel! depicts Hello 3uc%=s sales and bottling process. 4ncorrect BP/ diagram
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Chapter 07 Conversion Business Process 'nser e!
True / False Questions 1.
Conv Conver ersi sion on lab labor or cos costs ts beco become me part part of of cos costt of good goods s sol sold. d. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: $emem%er Di&culty: ' (asy Learning )%*ective: +,-+' Descri%e t!e %usiness activities t!at comprise t!e conversion process. Source: )riginal opic: Conversion processes
2.
Gate Gatea a!s !s can can dir direc ectt se" se"ue uenc nce e #o #o to supp suppor ortt loo loopi ping ng.. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+/ Develop an activity model o1 t!e conversion process using BP0#. Source: )riginal opic: Conversion processes
$.
Busine Bus iness ss rule rules s descri describe be appr appropr opria iate te actio actions ns to ta% ta%e e based based on pro proces cess s condit condition ions. s. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+2 Develop %usiness rules to implement controls 1or t!e conversion process. Source: )riginal opic: Conversion processes
&.
'pplic 'pplicati ation on cont contro rols ls limi limitt acces access s to vie vieing ing and and chan changin ging g recor records ds in a s!ste s!stem. m. FALSE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: $emem%er Di&culty: ' (asy Learning )%*ective: +,-+2 Develop %usiness rules to implement controls 1or t!e conversion process. Source: )riginal opic: Conversion processes
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(.
' labor labor plan plan class class ould ould esta establi blish sh stan standa dard rd over overhea head d alloc allocati ation on rate rates. s. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
).
The primar! primar! %e! of the Production Production 'uthori*ation 'uthori*ation table ould ould be posted in in the Production +teps table as a foreign %e!. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+4 Implement a relational data%ase 1rom t!e 0L Class Diagram o1 t!e conversion process. Source: )riginal opic: Conversion processes
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7.
The primar! primar! %e! of the ,mplo!ees ,mplo!ees table ould ould be posted in the Production Production +teps table as a foreign %e!. FALSE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+4 Implement a relational data%ase 1rom t!e 0L Class Diagram o1 t!e conversion process. Source: )riginal opic: Conversion processes
-.
The primar! primar! %e! of the Production Production +teps table table ould be posted in the Production Production Plan table as a foreign %e!. FALSE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+4 Implement a relational data%ase 1rom t!e 0L Class Diagram o1 t!e conversion process. Source: )riginal opic: Conversion processes
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.
The lin% beteen beteen the Products Products and and Production Production Plan tables tables ould be implemented implemented as a lin%ing table. FALSE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+4 Implement a relational data%ase 1rom t!e 0L Class Diagram o1 t!e conversion process. Source: )riginal opic: Conversion processes
10.
The lin% beteen beteen the Production Production Plan and /aterials /aterials tables tables ould be be implemented implemented as a lin%ing table. TRUE AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+4 Implement a relational data%ase 1rom t!e 0L Class Diagram o1 t!e conversion process. Source: )riginal opic: Conversion processes
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Multiple Choice Questions 11.
hich hich of the follo folloing ing t!pes t!pes of busine business ss is least least li%e li%el! l! to emplo! emplo! a conver conversion sion process
'. estaura '. nt B. etail B. etail store C. Ba%er C. ! 3. /achine 3. /achine shop AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+' Descri%e t!e %usiness activities t!at comprise t!e conversion process. Source: )riginal opic: Conversion processes
12.
hich hich of the folloing folloing is not not a basic basic activit activit! ! in the conversi conversion on proces process s
'. 4ssue ra '. material B. Perform or% and account for labor C. +hip products products to stores 3. 'uthori*e 3. 'uthori*e production AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+' Descri%e t!e %usiness activities t!at comprise t!e conversion process. Source: )riginal opic: Conversion processes
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1$.
hich hich of the follo folloing ing best best descr describes ibes the purpos purpose e of an an interme intermediat diate e error error event event
A. 3irects A. 3irects se"uence #o hen an activit! aborts B. 3ela!s the se"uence until a speci5ed time C. aits for e6ternal messages 3. ,nds 3. ,nds a process AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+/ Develop an activity model o1 t!e conversion process using BP0#. Source: )riginal opic: Conversion processes
1&.
Consider Consider the follo folloing ing BP/ BP/ diagr diagram am of a subpro subprocess cess.. hich hich of of the folloing folloing is re"uired to correct an error in the diagram
'. Change the intermediate event to a start event. B. Change the intermediate error event to an e6clusive e6clusive gatea! C. 'dd C. 'dd a se"uence #o to an end event after the discard errors activit!. activit!. 3. 3rop 3. 3rop the activit! named 3iscard ,rrors. AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+5 nderstand and apply di6erent activity modeling options. Source: )riginal opic: Conversion processes
1(.
hich hich of the follo folloing ing is is the best reason reason that a collabor collaboration ation model model ould ould not not be used to diagram the conversion process process
A. 'll A. 'll conversion activities are internal to the organi*ation. B. ' collaboration collaboration model does not not include simlanes. C. The orchestration orchestration of the activities is not shon in a collaboration model. 3. The choreograph! choreograph! beteen pools is not shon in a collaboration collaboration model. AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy 7-1( Copyright © 2014 McGraw-Hill Education. All rights rsr!d. "o rproduction or distri#ution without th prior writtn consnt o$ McGraw-Hill Education.
AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+5 nderstand and apply di6erent activity modeling options. Source: )riginal opic: Conversion processes
1).
hich hich of the folloing folloing least least re#ec re#ects ts the the purpose purpose of a business business rule in the the conversion process
'. +egregating +egregating authori*ing8 issuing8 issuing8 and conversion or% duties B. 9imiting ho can vie and change records in the s!stem C. ,nsuring no production ithout ithout a customer order 3. 'ssuring that all products products meet "ualit! standards AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+2 Develop %usiness rules to implement controls 1or t!e conversion process. Source: )riginal opic: Conversion processes
17.
4n a basic basic :/9 diagram diagram of of the conversi conversion on proces process8 s8 hich hich of the folloing folloing best describes the purpose of a dualit! association association
'. +hos the participation participation of emplo!ees in the the process. B. 9in%s B. 9in%s or% in process events to the original production authori*ation. C. 4ndicates issue issue of ra material material into the process. 3. Trac%s 3. Trac%s completion of or% in process and increase to 5nished goods inventor!. AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
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1-.
evie evie the follo folloing ing diagr diagram. am. hich hich anser anser provid provides es the best inter interpre pretatio tation n of the multiplicities for the association beteen the ,mplo!ees and Production Production 'uthori*ation classes
'. The emplo!ee records the completion completio n of a ;ob and updates 5nished goods. B. ,ach production authori*ation authori*ation results results in the increase increase to the "uantit! on hand of one product. C. ,mplo!ees manage manage multiple multiple products. D.
AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
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1.
evie evie the follo folloing ing diagr diagram. am. hich hich anser anser provid provides es the best inter interpre pretatio tation n of the multiplicities for the association beteen the Products and Production 'uthori*ation classes
'. The emplo!ee records the completion completio n of a ;ob and updates 5nished goods. B. ,ach production authori*ation authori*ation is related to one product. C. ,ach product is related to one production authori*ation. 3.
AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
20.
hich hich of the follo folloing ing best best descr describes ibes the purpos purpose e of a bill of materia materiall class class
A. 9 A. 9in%s in%s each ra material item to one or more 5nished good items. B. +hos the issues of ra ra material items items into or% in process. C. 9in%s 5nished 5nished goods to production. 3. +hos the ra material material usage variance. AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: nderstand Di&culty: / 0edium Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
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Essay Questions
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21.
4ntegrated Ca Case +erena=s Tennis Togs8 4nc.8 as founded b! one of the orld famous omen=s tennis pla!ers to produce tennis and other sports clothing for the man! omen that appreciate +erena=s uni"ue fashion sense. +erena=s Tennis Togs8 4nc. >+TT4? ma%es and mar%ets multiple t!pes of recreational clothing lines for omen. This case focuses on +TT4=s ac"uisition@pa!ment and conversion processes. +TT4 Conversion c!cle. hen +TT4 gets an order from one of their distributors >sales orders are not modeled in this case?8 a manufacturing supervisor issues one or more production orders to authori*e production of the clothing items. ,ach production order applies to onl! one 5nished clothing item. For cost accounting purposes8 +TT4 determines the total standard labor and material cost for each production order. +TT4 has carefull! planned the material and labor re"uired for each of its 5nished clothing items. 4ts master assembl! plan speci5es the se"uence of steps >assembl! operations? as ell as the ra materials re"uired to produce each 5nished clothing item. The master assembl! plan also speci5es the standard labor and material cost for each step. ,ach step in the master assembl! plan is identi5ed ith a master assembl! number. The actual manufacturing process occurs in a series of of assembl! steps steps >each step step is identi5ed b! control A in the production control records?. ,ach step ma! use several t!pes of material. +TT4 trac%s the actual material and labor costs for each step in their production control records. +TT4 also trac%s the total standard and actual costs for each production order. The +TT4 manufacturing manufacturing process process emplo!s to classes of emplo!ees crafters and supervisors >model separatel!?. Crafters get the ra materials from inventor! and use them in the assembl! steps. ,ach assembl! step ma! involve several crafters8 and crafters ma! or% on several assembl! steps. The crafters crafters are are paid on an hourl! hourl! basis. basis. Production Production supervisors supervisors are paid salaries salaries and bonuses. >/odel them separatel!?. separatel!?. +TT4 Purchases. Purchases. +TT4=s 5nancial success depends on the "ualit! of their products8 so the compan! bu!s onl! the highest "ualit! ra materials and follos a structured ac"uisition process. First8 the bu!ers issue purchase orders to vendors for one or more re"uired ra material items. +econd8 the vendor ships the products to +TT48 and +TT4 records records purchases upon receipt and acceptance of the items. 4n some cases8 vendors ful5ll several purchase orders ith one shipment. +TT4 ta%es advantage of all prompt pa!ment discounts. 4f multiple vouchers are due to the same vendor on a certain da!8 the cashier combines those into one pa!ment. +TT4 pa!s for each purchase purchase in full8 less an! applicable discount8 on the da! that the pa!ment is due. 'fter receipt and acceptance8 each ra material item is stored in its designated bin to facilitate its issue to the production process8 although each bin ma! hold several dierent t!pes of ra material. ,ach bin is colorDcoded for eas! identi5cation. General. 'll economic agents8 resources8 and t!pes are put into the database before an! relationships ith other entities are instantiated. +TT4 trac%s its emplo!ees in separate classes according to their particular ;ob8 although each
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internal internal agent is %e!ed b! emplo!eeA. >+o8 don=t model mo del one ,mplo!ee agentE model separate internal agents8 e.g.8 bu!ers8 crafters8 cashiers8 supervisors.? REQUIRED REQUIRED 1? use the information above and the list of attributes belo to dra a :/9 class diagram shoing the classes8 associations8 and multiplicities8 2? prepare a listing of the tables necessar! to support +TT4=s processes using all the attributes. ame each table and clearl! identif! primar! %e!s ith P and foreign %e!s ith F. 9ist !our tables in the folloing order ,+<:C,+8 ,,T+8 'G,T+8 THP, 4/'G,+8 and 944G. :se onl! the folloing list of attributes >remember >remember that there should be no classes ithout attributes?. 'ttributes
3iagram
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Table Table listing listing esources Cash O cash account A >P?8 cash account balance a /aterial O ra material A >P?8 ra material description8 ra material F? Finished Clothing 4tems O 5nished clothing item A >P?8 5nished clothing item price8 5nished clothing item "uantit! on hand O P?8 purchase order date8 purchase order O P< total dollar amount8 scheduled deliver! date8 receiving reportA >F?8 bu!er emplo!eeA >F?8 vendorA >F? Purchases O receiving report A >P?8 total purchase Q amount8 actual Q amount paid for this purchase8 bu!er emplo!ee emplo!ee A >F?8 vendor A >F?8 chec% A >F? Cash 3isbursements O chec% A >P?8 chec% amount8 cash account A >F?8 cashier emplo!ee A >F?8 vendor A >F? 'ssembl! steps O record A >P?8 assembl! step date8 production order A >F?8 master assembl! list A >F? Production P?8 production order due date8 actual labor cost8 actual material cost8 standard labor cost8 standard material cost8 5nished clothing itemA >F?8 supervisor emplo!eeA >F? 'gents Bu!er O emplo!ee A >P?8 emplo!ee name8 bu!er rating Cashier O emplo!ee A >P?8 emplo!ee name8 cashier bond status Crafter O emplo!ee A >P?8 emplo!ee name8 crafter hourl! age Production supervisor O emplo!ee A >P?8 emplo!ee name8 salar!8 HT3 bonus for 7-2& Copyright © 2014 McGraw-Hill Education. All rights rsr!d. "o rproduction or distri#ution without th prior writtn consnt o$ McGraw-Hill Education.
this supervisor endor O vendor A >P?8 vendor name8 individual accounts pa!able8 percent onD time deliveries for this vendor8 percent onDtime pa!ments to this vendor T!pe T!pe 4mages /aster 'ssembl! Plan O master assembl! A >P?8 standard labor cost for assembl! step8 se"uence in hich assembl! step performed8 5nished clothing item A >F? Bin O bin A >P?8 bin color 9in%ing Tables PurchaseDa /aterial O receiving report A R ra material A >P?8 actual "uantit! of ra material received Purchase P? 'ssembl! stepDCrafter O step record A R crafter emplo!ee A >P?8 actual time for this crafter in this assembl! step 'ssembl! +tepDa /aterial O ra material A R step record A >P?8 ra material actual "uantit! used in this assembl! step /aster 'ssembl!Da /aterial O master assembl! list A R ra material A >P?8 ra material standard "uantit! for this assembl! step
AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: Apply Di&culty: 5 7ard Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
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22.
4ntegrated Ca Case Gar! Cooper >!es D that is his real name8 and his nic%name is Coop? loves classic cars8 but he %nos he ill never be able to aord most of them. Ie also %nos that most classics are unreliable unreliable and e6pensive to on. Plus8 the! do not have the features features and comforts of modern cars. +o8 he created a compan! that constructs custom replicas of classic cars. Iis replicas have modern mechanical parts and man! of the features that can be found in toda!s= cars. /ore importantl!8 importantl!8 the! meet modern safet! and emission re"uirements. This case describes Coop=s sales and production and production processes. processes. Coop=s Cars Coop developed a list of replicas for the most soughtDafter classic cars. Ie sells replica ,uropean +ports Cars8 such as Porsche8 Ferrari8 and Jaguar8 as ell as some 'merican muscle cars. Coop trac%s each car8 engine8 and color combination ith a custom car product number. The customer gets to select among the various engine and color options for his@her car. Customers t!picall! order one car >one product number?8 but some customers love the cars so much that the! order several at once. Customers must provide at least a 2(K deposit ith the order8 but the! can pa! the balance after the! ta%e deliver! of the car. Car chassis Coop maintains an inventor! of car chassis ith bod! shells8 interior8 seats8 etc. Conse"uentl!8 Conse"uentl!8 he can deliver a custom car in ;ust a fe da!s. hen the inventor! of car chassis gets lo8 an emplo!ee issues a chassis production order. The chassis chassis assembl! plan describes describes the speci5c speci5c parts that go into each each chassis as ell as the speci5c chassis assembl! operations re"uired. Coop=s emplo!ees then conduct the assembl! operations to assemble the ne chassis. Customi*ing 'fter the customer places an order and selects the chassis8 engine8 and color combination8 Coop=s emplo!ees start the customi*ing operations. The engine is placed in the car and the car is painted. Then8 after some initial testing8 the car is placed in inventor!8 read! for deliver! to the customer. 'lthough several emplo!ees or% on the customi*ing operations8 Coop also designates one emplo!ee to supervise the process and assure a high "ualit! 5nished car. /iscellaneous Coop %eeps all his emplo!ee records in one table8 but he also categori*es emplo!ees according to their specialt!. Ie records information about emplo!ees8 customers8 emplo!ee t!pes8 custom cars8 and classic parts before the! are lin%ed to other classes. REQUIRED REQUIRED 1? use the information above and the list of attributes belo to dra a :/9 class diagram shoing the classes8 associations8 and multiplicities8 2? prepare a listing of the tables necessar! to support Coop=s processes using all the attributes. ame each table and clearl! identif! primar! %e!s ith P and foreign %e!s ith F. 9ist !our tables in the folloing order ,+<:C,+8 ,,T+8 'G,T+8 THP, 4/'G,+8 and 944G. :se onl! the folloing list of attributes >remember >remember that there should be no classes ithout attributes?. 'ttributes
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3iagram
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Table Table listing listing esources Chassis Parts O Chassis Part A >P?8 Chassis part description8 Chassis part P?8 Chassis description8 Chassis P?8 ,ngine c!linders8 ,ngine horsepoer Custom Cars O Custom Car Product A >P?8 Chassis A >F?8 ,ngineA >F?8 Custom car price8 Custom car actual cost8 Custom car standard cost Cash O Cash 'ccount A >P?8 Cash account balance ,vents 'ssembl! P?8 Chassis assembl! operation date8 Chassis 'ssembl! PlanA >F?8 Chassis 'ssembl! F?8 Total actual cost of this assembl! operation8 Total standard cost of this assembl! operation Chassis P?8 Chassis assembl! order date8 Total Total actual cost of this chassis chassis assembled assembled on this order8 Total standard standard cost of this this chassis assembled on this order8 ChassisA >F?8 ,mplo!ee A >F? 7-%0 Copyright © 2014 McGraw-Hill Education. All rights rsr!d. "o rproduction or distri#ution without th prior writtn consnt o$ McGraw-Hill Education.
Customi*ing P?8 Customi*ing operation date8 Chassis A >F?8 ,ngine A >F?8 ,mplo!ee A >F?8 Customer F? Customer P?8 Customer order date8 Customer order deliver! date8 Customer order total Q amount8 ,mplo!ee A >F?8 Customer A >F? Cash eceipt O C@ A >P?8 Cash receipt date8 Cash 'cct A >F?8 Customer F?8 Customer A >F?8 ,mplo!ee A >F? 'gents ,mplo!ee O ,mplo!ee A >P?8 ,mplo!ee T!pe >F?8 ,mplo!ee hire date8 ,mplo!ee name8 ,mplo!ee pa! rate8 Customer O Customer A >P?8 Customer address8 Customer name T!pe T!pe 4mages Chassis 'ssembl! Plan O Chassis 'ssembl! Plan A >P?8 ChassisA >F?8 Chassis assembl! planned se"uence8 ,mplo!ee T!pe O ,mplo!ee T!pe >P?8 umber of emplo!ee of this t!pe 9in%ing Tables Chassis 'ssembl! PlanDChassis Part O Chassis 'ssembl! Plan A R Chassis Part A >P?8 +tandard cost of this part in this chassis8 +tandard "t! of this part in this chassis Chassis PartsD'ssembl! P?8 'ctual "t! of this part in this chassis 'ssembl! P?8 number of hours this emplo!ee or%ed on this assembl! operation Customi*ing P?8 number of hours this emplo!ee or%ed or%ed on this customi*ing operation Custom CarsDCustomer P?8 t! of this custom car ordered on this order
AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: Apply Di&culty: 5 7ard Learning )%*ective: +,-+3 Develop a structure model 1or t!e conversion process using 0L class diagrams. Source: )riginal opic: Conversion processes
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2$. 2$.
Corr Correc ectt the the BP BP/ / 'cti 'ctivi vit! t! 3iag 3iagra ram m 'fter a ver! successful career in business8 a! obertson decided to leave the ratD race to pursue his lifeDlong >adult lifeDlong? interest interest in breing uni"ue8 handD crafted beers. Ie anted his business to re#ect his passions beer8 football8 and the The availabilit! of an! bottled beer depends on hat Hello 3uc% has breed recentl! and the bottles on hand.? Hello 3uc% bottles its beers hen a customer service emplo!ee receives an order for one or more bottled beer products from a customer. Hello 3uc% records the sale hen the customer pic%s up the beer from the customer service emplo!ee. Hello 3uc% onl! sells its beer to holesale customers8 so each customer pa!s for all the sales during the month in one pa!ment at the end of the month. Hello Hello 3uc% Bottling Bottling Process Process Hello Hello 3uc% sells sells its beer beer in distinctive distinctive bottles8 designed b! local local artists8 artists8 to stand out from more mundane beers. The bottling process ta%es place in a series of steps. ,ach step is authori*ed b! a supervising emplo!ee and also involves several other emplo!ees ho carefull! transfer breed breed beer into the bottles8 appl! the labels8 and place the bottles in the bottled beer inventor!. 't that point the beer is read! for sale to the customer. ,ach bottling step involves onl! one particular bottle number but ma! involve several dierent breed beers. REQUIRED REQUIRED :sing the description above8 correct the BP/ activit! diagram ith shon belo so that the diagram accuratel! depicts Hello 3uc%=s sales and bottling process. 4ncorrect BP/ diagram
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>
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AACSB: Analytic Analytic AICPA AICPA BB: Leveraging Leveraging ec!nolo ec!nology gy AICPA AICPA "#: Leveraging Leveraging ec!nolo ec!nology gy Blooms: Apply Di&culty: 5 7ard Learning )%*ective: +,-+/ Develop an activity model o1 t!e conversion process using BP0#. Source: )riginal opic: Conversion processes
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