Question

The billing/accounts receivable/cash receipts process comprises three different but related processes--namely, B, AR, and CR. Which of the following would not be an operations process goal for these three processes?

a. ensure effectiveness of operations
b. ensure AR master data update accuracy
c. ensure effectiveness of operations
d. ensure security of resources

Answer 1

The billing/accounts receivable/cash receipts process involves three processes - billing, accounts receivable, and cash receipts. The operations process goals include ensuring effectiveness, accuracy of AR master data update, and security of resources.

Step-by-step explanation:

The objective of the billing/accounts receivable/cash receipts process is to efficiently and accurately manage the financial transactions related to sales and cash receipts. The three processes involved are billing, accounts receivable, and cash receipts.

1. Ensure effectiveness of operations: This goal focuses on ensuring that the processes are carried out efficiently, with minimal errors and delays, to maximize productivity and customer satisfaction.
2. Ensure AR master data update accuracy: Maintaining accurate and up-to-date information about accounts receivable is crucial for effective financial management.
3. Ensure security of resources: This goal pertains to protecting the company's financial assets, such as cash and customer data, from unauthorized access or theft.

Answer 2

Ensure security of resources is not an operation process goal for these three processes. Option (d) is true.

Step-by-step explanation:

a. Ensure effectiveness of operations:

This is a valid goal for the billing/accounts receivable/cash receipts processes.

Effectiveness involves achieving the intended outcomes and goals of the processes, such as accurate billing, timely collection of accounts receivable, and efficient cash receipt procedures.

b. Ensure AR master data update accuracy:

This is a specific and valid goal for these processes.

Accuracy in updating accounts receivable (AR) master data is crucial for maintaining correct customer information, credit limits, and transaction details, ensuring the integrity of the financial records.

d. Ensure security of resource:

Ensuring the security of resources is a valid goal, but it is more general and may not be directly related to the specific operations of billing, accounts receivable, and cash receipts.

Security of resources could include protecting physical and digital assets, information, and ensuring compliance with relevant regulations.

Thus, option (d) is true.