Deck 6: Erp Systems

Question 1

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

Answer 1

D
Customers and suppliers

Question 2

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. TEST BANK - CHAPTER 15 - MULTIPLE CHOICE

Answer 2

A
The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems.

Question 3

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 resource planning system

Answer 3

A
Data warehouse

Question 4

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

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

Question 5

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 6

MRP applications are:

A)Management resource programs software
B)Manufacturing resources planning software
C)Management reporting programs software
D)Manufacturing reporting programs software

Question 7

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 8

What company developed the first true ERP systems?

A)Microsoft
B)Peoplesoft
C)SAP
D)IBM

Question 9

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 10

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 11

An ERP system uses:

A)One database for each module associated with the organization - sales, inventory, human resources, etc.
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 associated with the organization.
D)Relational databases for interactive queries between modules and departments.

Question 12

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 13

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 software application to accomplish revenue, expenditures, conversion, and administrative processes.
C)An ERP system will accomplish e-commerce but relies on other software applications for the accomplishment of e-business transactions.
D)An ERP system will not collect, process, store, and report the data resulting from e-business transactions.

Question 14

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 15

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

Question 16

The _________ 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)Enterprise resource planning system

Question 17

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 18

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

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

Question 19

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 20

Manufacturing companies implement ERP systems for the primary purpose of

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

Question 21

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 22

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 23

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 24

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 25

Data within an ERP system may be stored in an):

A)Operational database
B)Relational database
C)Data warehouse
D)Both A & C

Question 26

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 27

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

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

Question 28

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 29

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 30

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 personnel for customer histories.

Question 31

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 32

ERP software operates on an) _________ database

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

Question 33

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 34

Which company developed the first true ERP system?

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

Question 35

Y2K compatibility issues arose because:

A)Older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expense.
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 36

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 37

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

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

Question 38

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 39

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 so important to daily operations that many companies cannot allow their ERP system to become outdated.

Question 40

ERP modules include all EXCEPT:

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

Question 41

Select the true statement from the following:

A)The strength of SAP is its human resources capabilities.
B)The strength of Peoplesoft is its manufacturing capabilities.
C)The strength of SAP is its financial reporting capabilities.
D)The strength of Peoplesoft is its human resources capabilities.

Question 42

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 43

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 44

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 software experience so the software reflects tried and true practices.
D)There is the capability to analyze large amounts of data in a single database.

Question 45

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 46

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 47

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 48

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 49

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)Peoplesoft
D)mySAP

Question 50

Best of breed means:

A)Picking the best ERP software on the market for the particular type of business or organization.
B)Picking the best software on the market for a particular type of business process for this size of an organization.
C)Picking the best consulting firm to accomplish implementation of the ERP software.
D)Utilizing the most capable employees within the organization work with the implementation of the ERP application.

Question 51

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 52

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 53

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

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

Question 54

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 55

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 56

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

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

Question 57

Business process reengineering means:

A)Reconfiguring the ERP system to fit the current methods of the organization.
B)Retaining general software applications as legacy systems to reduce training and implementation costs.
C)Modifying business processes to take advantage of the capabilities of the ERP system.
D)Acquiring additional computer networking resources to effectively handle current business processes.

Question 58

The advantages and disadvantages of modular implementation are:

A)Full system integration is available but hardware incompatibilities exist.
B)Reduces the risks associated with installation and operation of the system, but full system integration is not available.
C)All employees are exposed to some portion of the ERP system but critical information is still in the legacy system.
D)Critical information is still available in the legacy system but technical support is not readily available for the legacy system.

Question 59

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 reasonable business growth in the future.
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 60

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 software.

Question 61

The intent of an ERP enterprise resource planning) system is to provide a single software application for revenue, expenditures, conversion, and administrative processes.

Question 62

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)
B)Limit access to physical hardware.
C)Both A and
D)None of the Above.

Question 63

Early MRP applications utilized sales forecasts to compute material requirements for production.

Question 64

Manufacturing resource planning software systems are outgrowths of the ERP concept.

Question 65

The intent of an ERP enterprise resource planning) system is to provide a sales and inventory software application that will interact with the general ledger software with its sales and inventory transactions.

Question 66

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
TEST BANK - CHAPTER 6 - TRUE / FALSE

Question 67

Today's ERP systems can be traced back to the first generation of materials requirements planning software.

Question 68

An enterprise resource planning ERP) system integrates all business processes and functions into a single software system using a single database.

Question 69

An enterprise resource planning ERP) system allows a sales representative to provide the date that inventory for sale will be received from a vendor to a customer upon order placement.

Question 70

The purpose of MRP II was to integrate manufacturing, engineering, marketing, finance, and human resources units to run on the same information system.

Question 71

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 72

With 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 above, A, B, and C, are correct answers.

Question 73

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.

Question 74

SAP R/3 had tremendous growth due to the use of closed architecture and client-server hardware compatibility.

Question 75

ERP applications use modules such as financials, human resources, data warehouse, and analytics.

Question 76

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

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

Question 77

ERP data is stored in both financial and operational databases.

Question 78

Y2K compatibility issues arose because computers kept dates in mm/dd/yy type formats.

Question 79

An enterprise resource planning ERP) system would update accounts receivable and inventory when purchased goods are received from a vendor.

Question 80

The data warehouse is up dated as transactions are processed.