Deck 6: Enterprise Resource Planning ERP Systems

Question 1

An ERP system uses:

A)One database for each module as
B)One database for manufacturing, one database for sales, one database for administrative, and one database for design and research
C)One database which contains all data items as
D)Relational databases for interactive queries between modules and departments

Answer 1

C

Question 2

Which of the following is NOT one of the reasons for increased spending on ERP systems in recent years?

A)The need for Sarbanes-Oxley compliance
B)Globalization and increased competitive pressures
C)The need for earnings management
D)The need for customer service enhancements

Answer 2

C

Question 3

A(An) _________ contains the data necessary to conduct day-to-day operations and produce management reports used to oversee day-to-day operations.

A)Data warehouse
B)Data center
C)Operational database
D)none of the answers are correct

Answer 3

C

Question 4

MRP applications are:

A)Management re
B)Manufacturing re
C)Management reporting programs
D)Manufacturing reporting programs

Question 5

Supply chain management (SCM) is a critical business activity that connects a company more closely with its

A)Customers
B)Suppliers
C)Subsidiaries
D)Customers and suppliers

Question 6

Which of the following ERP approaches accomplishes the ERP implementation beginning with one department?

A)The pilot method
B)The modular implementation approach
C)The big bang approach
D)The location-wise implementation method

Question 7

The _________ is an integrated collection of enterprise-wide data that ideally should include 5 to 10 years of nonvolatile data.

A)Data warehouse
B)Data center
C)Operational database
D)Enterprise re

Question 8

An enterprise resource planning (ERP) system allows a sales representative to provide a customer with all of the following information except:

A)Is the product in stock?
B)What is the price of the product?
C)What is the cost of the product?
D)When will it be shipped?

Question 9

Which of the following is used to produce management reports that would be used to oversee day-to-day operations?

A)Operational Database
B)Data Warehouse
C)Functional Database
D)Organizational Database

Question 10

Manufacturing companies implement ERP systems for the primary purpose of

A)Increasing productivity
B)Reducing inventory quantities
C)Sharing information
D)Reducing investments

Question 11

Select the true statement from those provided below.

A)An ERP system is designed to interact with a stand-alone sales and inventory application to create general ledger information.
B)An ERP system is designed to be a stand-alone
C)An ERP system will accomplish e-commerce but relies on other
D)An ERP system will not collect, process, store, and report the data resulting from e-business transactions.

Question 12

Which of the following statements best describes the risks of ERP systems?

A)The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems.
B)The risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems, due to the scope, size, and complexity of ERP systems.
C)The risks of implementing ERP systems are greater than the risks of implementing IT systems, but the operating risks are nearly identical.
D)The risks of operating ERP systems are greater than the risks of operating IT systems, but the implementation risks are nearly identical.

Question 13

An ERP system is a software system that provides each of the following except:

A)Collection, processing, storage, and reporting of transactional data
B)Enhancement of e-commerce and e-business
C)Coordination of multiple business processes
D)Physical controls for the prevention of inventory theft

Question 14

What company developed the first true ERP systems?

A)Micro
B)People
C)SAP
D)IBM

Question 15

The primary difference between ERP and ERP II systems is that ERP II may include

A)Internet EDI
B)Logistics modules
C)Reporting modules
D)A data warehouse

Question 16

Which of the following is NOT a feature of an ERP system's database?

A)Increased efficiency
B)Increased need for data storage within functional areas
C)Increased customer service capability
D)Increased data sharing across functional areas

Question 17

The type of ERP system used by large, multinational corporations is known as

A)Big bang implementation
B)Modular implementation
C)Tier one
D)Tier two

Question 18

An enterprise resource planning (ERP) system would:

A)Update both accounts receivable and inventory when purchased goods are received from a vendor.
B)Update both accounts payable and accounts receivable when inventory purchased from a vendor is received.
C)Update both accounts payable and sales when purchased goods are received from a vendor.
D)Update both accounts payable and inventory when purchased goods are received from a vendor.

Question 19

Which of the following advantages is least likely to be experienced by a company implementing an enterprise resource planning (ERP) system?

A)Reduced cost
B)Improved efficiency
C)Broader access to information
D)Reduced errors

Question 20

In the late 1990s, the Y2K compatibility issue was concerned primarily with computer systems'

A)File retrieval capability
B)Data storage
C)Human re
D)Capital budgeting

Question 21

Material requirements planning (MRP) software:

A)Calculated raw materials quantities needed for manufacturing, calculated lead times on raw materials orders, and calculated material needs on accounts payable data
B)Calculated raw materials quantities needed for manufacturing and calculated lead times on raw materials orders
C)Calculated lead times on raw materials orders and calculated material needs on accounts payable data
D)Calculated raw materials quantities needed for manufacturing and calculated material needs on accounts payable data

Question 22

Which company developed the first true ERP system?

A)SAP
B)Oracle
C)Hyperion
D)Micro

Question 23

What type of database does ERP software operate on?

A)Operational
B)Warehouse
C)Relational
D)Enterprise

Question 24

SAP R/3 operates on a:

A)Mainframe environment with closed architecture
B)Client-server environment with open architecture
C)Client-server environment with closed architecture
D)Mainframe environment with open architecture

Question 25

Select the correct statement from those provided below:

A)MRP II allows interaction between suppliers and their customers via the internet or other electronic means.
B)While MRP II provides automatic inventory reordering, it does not allow suppliers to see customer inventory levels.
C)MRP II systems preclude e-commerce and e-business transactions due to internal security measures to protect data.
D)To increase operational response times, MRP II systems utilize operational databases but not data warehouses.

Question 26

Which of the following is NOT one of the reasons for the increased spending on ERP systems since 2004?

A)Bigger IT budgets replaced leaner budgets as economic conditions improved.
B)Many companies needed upgraded systems to enhance compliance with the Sarbanes-Oxley Act.
C)Business processes were separated and standardized.
D)ERP has become

Question 27

Management would use the _____________ module for feedback from the ERP system to assist in the proper management and control of operations.

A)Financials
B)Corporate services
C)Analytics
D)Human capital management

Question 28

The systems transition responsible for moving business processes from an internal management perspective to an interactive, internal, and external perspective is?

A)The evolution of Customer Relationship Management (CRM) into Supply Chain Management (SCM)
B)The evolution of ERP systems into ERP II systems
C)The evolution of Electronic Data Interchange (EDI) into ERP II systems
D)None of the above

Question 29

Interfaces between modules of ERP systems would be accepted for all of the following except:

A)Sales and inventory.
B)Sales and human re
C)Sales and accounts receivable.
D)Sales and manufacturing.

Question 30

The human capital management module of an ERP such as SAP would include all of the following components except:

A)Talent management
B)Workforce process management
C)Workforce development
D)Workforce termination management

Question 31

After 2004, spending on ERP systems increased or decreased based on several factors.These factors include all of the following except:

A)Y2K compliance concerns
B)The need for better customer service
C)Multi-national sites of operation
D)Compliance with the Sarbanes-Oxley Act

Question 32

Within an ERP program:

A)The operational database contains five to ten years of transaction histories.
B)The data warehouse is updated as daily transactions are recorded.
C)The data warehouse contains five to ten years of transaction histories.
D)The data warehouse information is available to sales per

Question 33

Data within an ERP system may be stored in a(n):

A)Operational database
B)Relational database
C)Data warehouse
D)Both an operational database and a data warehouse

Question 34

Y2K compatibility issues arose because:

A)Older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expensive.
B)Older computer systems recorded dates in mm/dd/yyyy formats and memory in older systems was unreliable.
C)Old computer systems kept dates in mm/dd/yy formats.
D)Memory in older systems would fail when challenged with a mm/dd/yy formatted date.

Question 35

ERP modules include all except:

A)Financial
B)Operational database
C)Sales and services
D)Product development and manufacturing

Question 36

The analytics module of an ERP system such as SAP would include all of the following except:

A)Financial analysis
B)Strategic enterprise management
C)Project portfolio management
D)Workforce analysis

Question 37

Over the next few years, spending on ERP systems is expected to:

A)Fall
B)Stay Constant
C)Rise
D)Spending habits are uncertain for the future

Question 38

The financials module of an ERP such as SAP would include all of the following components except:

A)Inventory
B)Financial accounting
C)Management accounting
D)Corporate governance

Question 39

The sales and services module of an ERP such as SAP would include all of the following components except:

A)Sales order management
B)Procurement
C)Professional service delivery
D)Incentive and commissions management

Question 40

The purpose of MRP II was to integrate all of the following into a single database except:

A)Human re
B)Manufacturing
C)Marketing
D)Finance

Question 41

The advantage of "best of the breed" is:

A)The best functionality of the ERP system as a result of total implementation
B)The best functionality of a unique process of the organization
C)Best cost of implementation of the ERP system
D)Total integration of the ERP modules

Question 42

When one site is utilized as the pilot approach to ERP, the implementation method is referred to as:

A)Big bang implementation
B)Hardware implementation
C)Location-wise implementation
D)Modular implementation

Question 43

Business process reengineering means:

A)Configuring the business processes to conform to the functionality of the IT system
B)Configuring the IT system to the business process for best processing speed
C)Matching the IT and business processes to achieve the greatest mutual benefit from each
D)Configuring both IT and business processes to meet the goals of ERP

Question 44

More than one-half of ERP implementations by the ________ approach experienced significant failures or problems in the 1990s, and nearly one-third of these implementations abandoned in progress.

A)Big bang
B)Location-wise
C)Progressive
D)Modular

Question 45

To employ analytical processes on the organization's data:

A)Data mining is performed on the operational database.
B)Data is uploaded to the analytics module's database.
C)Data mining is performed on the data warehouse.
D)Data is uploaded to the financials module's database.

Question 46

All of the following are implementation of software systems except:

A)The big bang implementation
B)Location-wise implementation
C)Progressive implementation
D)Modular implementation

Question 47

The first "pure Internet" architecture, with no programming code residing on the client computer was:

A)SAP R/3
B)Oracle Applications
C)People
D)mySAP

Question 48

Which of the following ERP implementation methods is rarely used today due to its high rate of failure?

A)Big Bang
B)Location-Wise
C)Modular
D)Micro-Enterprise Approach (MEA)

Question 49

Which of the following companies would be most likely to use a Tier-Two ERP software?

A)AT&T
B)Walmart
C)Rite Aid, a national pharmacy store chain
D)None of the above

Question 50

Business process reengineering means:

A)Reconfiguring the ERP system to fit the current methods of the organization
B)Retaining general
C)Modifying business processes to take advantage of the capabilities of the ERP system
D)Acquiring additional computer networking re

Question 51

When computerized technology is introduced into processes, the processes

A)Must utilize standardized forms and screens for data entry
B)Can be radically redesigned to take advantage of the speed and efficiency of computers to improve processing efficiency
C)Data retrieval from the databases will be restricted to upper management for analysis
D)Both B and C are correct

Question 52

A consulting firm helping a company with the implementation of an ERP system will typically perform all of the following actions except:

A)Evaluating and selecting an ERP system
B)Hiring specialized technicians to maintain the system
C)Implementing the
D)Training employees to use the system

Question 53

The two tiers of ERP systems are:

A)The internal tier and external tier
B)The vendor & customer tier and the employee tier
C)The large, multinational corporation tier and the midsize business tier
D)The acquisitions tier and the sales tier

Question 54

The term for software solutions that help businesses manage customer relationships in an organized way is:

A)Sales and service
B)Customer relationship management
C)Corporate services
D)Human capital re

Question 55

ERP implementation:

A)Must accomplish a full ERP system implementation
B)May install only selected modules
C)Must be done one module at a time
D)Is a short duration process due to total integration of the

Question 56

The ERP program that uses the term "back office" in reference to managerial functions and "front office" in reference to customer and sales functions is:

A)SAP R/3
B)Oracle Applications
C)People
D)mySAP

Question 57

The big bang approach to implementation means that the company:

A)Will buy one integrated system to accomplish all business processes
B)Implements all modules and all function areas of the ERP system at one time
C)Commences training and data cleansing throughout the organization on one date
D)Implements the business process reengineering process on a predetermined date

Question 58

Best of breed means:

A)Picking the best ERP
B)Picking the best
C)Picking the best consulting firm to accomplish implementation of the ERP
D)Utilizing the most capable employees within the organization to work with the implementation of the ERP application

Question 59

All of the following are types of integration strategies utilized by an ERP system except:

A)People Integration
B)Process Integration
C)Information Integration
D)Supply Chain Integration

Question 60

Select the true statement from the following:

A)The strength of SAP is its human re
B)The strength of People
C)The strength of SAP is its financial reporting capabilities.
D)The strength of People

Question 61

The advantages and disadvantages of modular implementation are:

A)Full system integration is available but hardware incompatibilities exist.
B)It reduces the risks as
C)All employees are exposed to
D)Critical information is still available in the legacy system but technical support is not readily available for the legacy system.

Question 62

All of the following are operation risks of ERP systems except:

A)Availability
B)Online Privacy
C)Confidentiality
D)Duplicate Information

Question 63

Factors which adversely affect the implementation of an ERP system do NOT include:

A)Cost
B)Complexity
C)Size
D)Scope

Question 64

To resolve discrepancies on invoices so that they can be paid on a timely basis, management may issue which of the following?

A)Report on purchase orders created after the invoice date
B)Blocked invoice Report
C)Requisition Invoice Report
D)Purchase Order Transcription Report

Question 65

If one module in the ERP system fails,

A)The rest of the system will operate correctly.
B)It has the potential to stop or disrupt all processes across the entire enterprise.
C)That one module will automatically revert to the legacy system.
D)Will result in the entire system reverting to the legacy system.

Question 66

Organizational benefits of ERP implementation include all except:

A)Retaining long-held work patterns and work focus
B)Facilitating organizational learning
C)Building a common vision
D)Increased employee morale and satisfaction

Question 67

Benefits of an ERP system include all of the following except:

A)The real-time nature of processing increases the total processing time.
B)The interactive nature of the modules allows processes to interact with each other.
C)ERP systems have evolved from many years of
D)There is the capability to analyze large amounts of data in a single database.

Question 68

To prevent issues with segregation of duties within an ERP system, the system may do which of the following?

A)Limit the types of transactions each employee can perform
B)Limit access to physical hardware
C)Both answers are correct
D)Both answers are incorrect

Question 69

Which of the following is true with regard to the proper implementation of an ERP system:

A)Fraud due to inappropriate transaction recording is eliminated.
B)Employee IDs, passwords, and segregated duties aid in internal control measures.
C)Audit trails are not necessary due to ID and password security concepts.
D)All of the answers are correct answers.

Question 70

ERP system benefits include all except:

A)ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers.
B)ERP systems are configured upon implementation to exceed any rea
C)The ERP systems incorporate modules to conduct e-commerce and e-business.
D)Analytical tools that enable detailed analysis of the data are incorporated into ERP systems.

Question 71

Operation risks with an ERP system includes all of the following except:

A)Security is a greater risk because processes are integrated.
B)An unauthorized user can affect more processes in the legacy system.
C)Incorrect data generated in a given process can automatically post flawed data to other processes.
D)Online privacy and confidentiality risks are magnified.