D215 Auditing - Set 5 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: What is 'capacity planning'?

Determining the number of employees needed for production

Identifying the actions necessary to meet customer demand

Estimating how much inventory is needed to meet sales

Scheduling production based on available equipment

Question 2: What is 'tier one supplier'?

Supplier that directly provides materials to the end customer

Supplier that provides materials directly to the processing facility

Supplier that provides raw materials to another supplier

Supplier that manages the distribution network

Question 3: What is 'push production'?

A method where production starts based on actual demand

A method where products are made in anticipation of future demand

A system that reduces excess inventory

A system that only produces based on customer orders

Question 4: What is 'job rotation'?

Giving an employee additional responsibilities

Moving employees between different jobs to increase skills

Reducing the number of tasks assigned to employees

Increasing the amount of overtime worked by employees

Question 5: What is the purpose of 'capacity requirement planning' (CRP)?

To calculate the maximum production output

To calculate the production capacity required to meet demand

To determine the number of employees needed

To estimate the amount of overtime required

Question 6: What is 'vertical integration'?

Acquiring companies that operate in the same industry

Acquiring companies that supply raw materials or distribute products

Expanding into unrelated business sectors

Merging with competitors

Question 7: What is the purpose of 'job enrichment'?

To improve production line automation

To provide employees with additional responsibilities and incentives

To reduce the number of tasks an employee is responsible for

To evaluate employee efficiency

Question 8: What is 'finite loading'?

Scheduling that does not consider capacity limitations

Scheduling work centers up to a predetermined capacity

Scheduling based on available workforce

Scheduling tasks without considering deadlines

Question 9: What is the primary focus of 'lean systems'?

To reduce employee costs

To maximize value by removing waste and inefficiencies

To increase production output

To maintain large inventory levels

Question 10: What is 'effective capacity'?

The highest achievable output under ideal conditions

The output level a company expects to achieve given current operating constraints

The total production output during peak hours

The amount of time employees spend on individual tasks

Question 11: What is the primary objective of 'ISO 14000'?

To standardize inventory management practices

To provide guidelines for environmental management systems

To regulate financial reporting processes

To establish guidelines for employee training programs

Question 12: What is 'horizontal integration'?

A company acquiring its suppliers

A company merging with competitors in the same industry

A company outsourcing production tasks

A company reducing production output to save costs

Question 13: What is 'capacity utilization'?

A measure of the amount of available capacity being used

A method for determining production output

A calculation of the time required to meet customer demand

A strategy for maximizing inventory turnover

Question 14: What is the purpose of 'capacity planning'?

To identify the number of employees required for a project

To plan for the resources necessary to meet customer demand

To determine which tasks need to be outsourced

To allocate tasks based on employee availability

Question 15: What is 'MRP' (Material Requirements Planning)?

A system that schedules employee work shifts

A system that determines the quantity and timing of material requirements

A method for forecasting sales

A strategy for reducing production costs

Question 16: What is 'project process'?

A standardized procedure for producing goods

A method for making one-at-a-time products to customer specifications

A continuous production process for mass manufacturing

A system for reducing production waste

Question 17: What is 'control risk'?

The risk that management will make poor financial decisions

The risk that internal controls will not prevent or detect material misstatements

The risk that production output will exceed capacity

The risk of overloading employees with tasks

Question 18: What is 'observed time'?

The time recorded under ideal conditions

The actual time measured during the performance of a task

The estimated time required to complete a task

The maximum time allowed for task completion

Question 19: What is 'scatter diagram' used for?

To track project progress

To determine the relationship between two variables

To compare the outputs of different production facilities

To identify bottlenecks in a process

Question 20: What is the purpose of 'six sigma'?

To increase production speed

To eliminate causes of defects and minimize variability in processes

To reduce employee turnover

To maximize inventory levels

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