TRUE/FALSE
1. One of the four functional functional areas of operation is Human Resources Resources (HR). ANS: T 2. Historically, businesses businesses have had organizational structures that separated the functional functional areas, but business schools have have not been organized like like that. ANS: F 3. Information systems systems that are designed designed so functional functional areas share data are called integrated integrated information systems. ANS: T 4. The functional functional area of Supply Supply Chain Management (SCM) sets prices. prices. ANS: F 5. Sales forecasts forecasts are historical historical records of sales. sales. ANS: F 6. Accounts receivable receivable are recorded by the Human Resources department department (HR). ANS: F 7. The business function function of government government compliance falls falls under the Supply Supply Chain Management Management functional area of operation. ANS: F 8. The business process process of Cash Flow Management is handled handled under the Accounting Accounting and Finance Finance functional area of operation. ANS: T 9. When manufacturing runs out of raw materials, it’s known as a stockout. ANS: T 10. To avoid stockouts, manufacturers manufacturers might might carry extra raw materials. This excess is known known as safety stock. ANS: T 1. The complex hardware and software that that goes into an ERP system was not available available until the 1970s. 1970s. ANS: F 2. The capabilities capabilities of computer hardware hardware doubling doubling every 18 months months is known as Gates’ Law.
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ANS: F 3. Scalability refers to a piece of equipment’s capacity being exceeded and that capacity being expanded by adding new hardware. ANS: T 4. The software that holds data in an organized fashion fashion is known known as a database management management system, or a DBMS. ANS: T 5. Materials requirements planning (MRP) software allows allows a plant plant manager to plan production production and raw materials requirements by guess-timation. ANS: F 6. The direct computer-to-computer computer-to-computer exchange of standard standard business business documents is known as EDI, or or electronic data interchange. ANS: T 7. The functional model model of business business and management was was useful for decades decades and is still the current current school of thought. ANS: F 8. SAP’s first software project involved developing a mat erials and logistics management system for ICI. ANS: T 9. SAP expanded into international markets markets but kept the software in a single language, language, German, and a single single currency, the Euro. ANS: F 10. SAP’s R/3 can only run on mainframe computers. ANS: F 11. Old systems systems are known known as as legacy legacy systems. ANS: T 12. Open architecture is defined as allowing allowing third-party software software vendors to to write software software to integrate with with the main package, such as SAP’s R/3. ANS: T
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13. The Oracle corporation corporation began selling ERP software; they they recently acquired a firm known known for its database database management systems. ANS: F 14. Defining the dollar dollar limits on on transactions in the SAP R/3 system system is known as limiting the tolerance groups. ANS: T 15. R/3’s design incorporates best incorporates best practices, which means means the designers have chosen the best, most efficient way in which a business process should be handled. ANS: T 16. One benefit of ERP ERP systems is the the elimination of of updating and repairing many separate computer systems. ANS: T 17. A large company might might spent $1 million on ERP ERP implementation, which which includes software and training. training. ANS: F 18. Not every company is suited suited to ERP systems. systems. ANS: T 19. SAP’s internal programming language is visual basic. ANS: F 20. The return on investment (ROI) is an assessment of an investment’s project’s value that is calculated by dividing the value of the project’s benefits by the value of the project’s cost. ANS: T 22. Individual information information systems systems for each functional area in a company company are known known as silos. silos. ANS: T 23. Silos of information are also also known known as stovepipes. ANS: T 24. The most current version of SAP’s software is known as R/3. ANS: F 25. The most current version of SAP’s software is known as SAP ERP.
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ANS: T 1. In SAP R/3, relatively permanent data about about customers is kept in the Customer Master Data table. ANS: T 2. In SAP R/3, relatively permanent data about about inventory is kept in the Material Master Data Data table. ANS: T 3. In SAP R/3, relatively permanent data in the Material Master Data table is available to only only one module, the Materials Management module. ANS: F 4. In SAP R/3, relatively permanent data about about customers in the Customer Master Master Data table is available to only the Sales and Distribution Distribution module. ANS: F 5. SAP R/3’s system allows one to group customers, which is commonly known as an "organizational structure". ANS: T 6. In SAP R/3, the linked set of document document numbers numbers is called the "document flow". ANS: T 7. In SAP R/3 the electronic electronic evidence of of a transaction transaction is called called a document. document. ANS: T 8. The first step in the SAP ERP sales sales and distribution distribution process is the Sales Order Processing Processing step. ANS: F 9. Pricing cannot cannot be set or configured in the SAP ERP system. system. ANS: F 10. Pricing can be be set using condition techniques. ANS: T 11. CRM software stands for Custom Resource Management. Management. This is a specialized type of ERP. ANS: F 12. Global ATP allows for searching of a particular product at multiple plants plants worldwide.
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ANS: T 13. Returned products to a company are processed more efficiently efficiently if the customer customer first calls calls for a RMA. ANS: T 14. An inquiry in the SAP ERP system system occurs in the Delivery Delivery step of the Sales and Distribution cycle. ANS: F 15. In the SAP ERP system, system, delivery means means releasing the documents documents that the the warehouse uses to pick, pack, and ship orders, rather than the traditional definition of transferring goods. ANS: T 16. The PO Number is a number assigned assigned by Fitter Snacker Snacker to track orders in the SAP ERP system. system. ANS: F 17. With on-demand CRM, the software and computer equipment reside with the the CRM provider; it it is not installed in-house. ANS: T 1. Good production decisions can be made knowing only the current level of finished goods inventory. inventory. ANS: F 2. Production planners aggregate products into product groups to make make forecasts and plans plans more accurate. ANS: F 3. The Sales and Operations Operations Planning process is used to combine the sales forecast with with capacity information to determine a production plan for finished goods. ANS: T 4. Demand Management in the SAP R/3 system system is the process process where sales forecasts forecasts are adjusted adjusted to incorporate the impact of marketing initiatives. ANS: F 5. The MRP process process determines determines the schedule of of finished goods production. production. ANS: F 6. Supply Chain Management Management is as much an approach to doing business business with suppliers suppliers as it is is a technology. technology. ANS: T 7. In a traditional supply chain, demand information is transmitted rapidly rapidly to all members of the supply chain.
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ANS: F 8. ERP systems are necessary to implement implement good supply chain management. management. ANS: F 9. The percentage of the the order that the the supplier provides provides in the first first shipment is is known as the the first-rate. ANS: F 10. Make to order items are produced to fill customer’s requests. ANS: T 11. The cost it normally normally takes to manufacture a product, product, which is usually usually derived from from historical data data and any changes that have occurred since then, is known as a structured cost. ANS: F 12. Rough-cut planning planning is a common term in manufacturing manufacturing for aggregate aggregate planning. planning. ANS: T 13. The production plan for all finished finished goods is is known as the MPS, or the master master production schedule. schedule. ANS: T 14. Another term for the recipe recipe of a product product is the bill of of materials. ANS: T 15. Lead times and lot lot sizing help help a company determine determine the transfer of of goods to the customer. ANS: F 16. Because Fitter Snacker uses uses large quantities quantities of oats, the most cost-effective way to purchase oats is to buy buy a farm and grown them. ANS: F 17. Because Fitter Snacker uses uses large quantities quantities of oats, the most cost-effective way to puchase oats oats is in bulk bulk hopper-truck quantities, which means that the material must be or dered in 44,000 pound quantities. ANS: T 18. The percentage of the order that the supplier supplier provided provided in the first shipment is known as the initial order lead time. ANS: F
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19. The initial fill rate measures measures the time time needed for the supplier supplier to fill fill the order. order. ANS: F 1. An income statement statement shows shows a company's company's profit or loss in a period. ANS: T 2. When a company company has an ERP system it no longer longer needs a general ledger. ANS: F 3. When a company has an ERP system the general ledger is maintained by the ERP system. system. ANS: T 4. The SAP ERP system has a module called Accounting and Finance. ANS: F 5. In SAP ERP access to general general ledger accounts is spread over many many modules. ANS: T 6. In a manufactured item, item, the cost of heating heating the plant would be considered considered part of the the item's raw materials. materials. ANS: F 7. In a manufactured item, item, the cost of heating heating the plant would be considered considered part of the the item's overhead. overhead. ANS: T 8. Using standard costs to accumulate accumulate manufacturing costs costs means that the company does not have to keep track of actual manufacturing costs. ANS: F 9. Activity based costing is a way of treating overhead costs more more like direct costs. costs. ANS: T 10. Activity based costing means keeping track of instances of activities activities as well as their costs. ANS: T 11. Having ERP will let a company use use more cost cost allocation allocation bases. ANS: T 12. Having ERP will require a company to restrict the number of cost cost allocation bases.
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ANS: F 13. In an ERP system, data does not flow from one module to another. ANS: T 14. In SAP ERP an event's "document flow" can can be accessed from any SAP ERP screen. ANS: T 15. SAP ERP's management reporting reporting tools tools use data in data warehouses. warehouses. ANS: T 16. The capability of viewing summary summary information and then being able to look at details behind the summary is known as data mining. ANS: F 17. The US Congress passed passed the Sarbanes-Oxley Sarbanes-Oxley Act of 2002 2002 in response to the fraud and abuse in the Enron collapse. ANS: T 18. An ERP system could have prevented all fraud at Enron. ANS: F 19. It’s very easy to delete items ite ms in the ERP system. ANS: F 20. User authorizations authorizations help prevent fraud and abuse by by employees employees paying fictitious vendors. vendors. ANS: T 21. Tolerance groups allow allow for limiting limiting the authority authority of employees employees over certain amounts amounts of transactions. transactions. ANS: T
26. Another name for an income income statement is a profit profit and loss loss statement. ANS: T 27. In an ERP system, the balance sheet and and P&L statements statements are database database reports. ANS: T 28. Managerial accounting deals with determining the the costs and profitability of the company’s activities.
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ANS: T 29. In the SAP ERP system, system, inputs to the general ledger occur simultaneously simultaneously with input input of business business transactions to the various modules. ANS: T
32. The key feature of of any ERP system is the ability to drill down from a report to the source documents documents (transactions) that created it. ANS: T 1. The tasks associated associated with managing managing a company's company's workforce is now known known as human human capital management management or HCM. ANS: T 2. The responsibilities responsibilities of an HR HR department include include manufacturing of goods goods and purchasing purchasing raw materials. ANS: F 3. Hiring costs costs for an employee employee can reach as high as $70,000. ANS: T 4. Sabermetrics is the statistical statistical technique technique that universities universities use to accept students into their college college programs. ANS: F 5. Succession planning planning should be performed on on every employee employee in the the company. ANS: F 1. Any abstract representation of a process is known as a process model. ANS: T 2. A graphical representation representation of the movement or flow of concrete or abstract items is a spreadsheet. spreadsheet. ANS: F 3. The term process mapping mapping is used interchangeably interchangeably with with flowcharting. flowcharting. ANS: T 4. An assessment of disparities between between an organization's organization's current situation situation and its long-term goals is known known as a swimlane assessment. ANS: F
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5. Process boundaries define which activities are to be included in the process. ANS: T 6. ERP software such as SAP has many business applications applications but none of them support support business processes. processes. ANS: F 7. In flowchart analysis, analysis, each activity in the process is analyzed for the value it adds adds to the product product or service. ANS: F 8. Dynamic process modeling modeling takes a basic basic process flowchart flowchart and puts it into motion using computer simulation. ANS: T 9. Software programs that that automate the execution execution of business business processes and and address all aspects of the process are called ERP Wizards. ANS: F 10. Organizational change management is a trivial trivial part of of the implementation implementation process. process. ANS: F 1. EDI cannot be be performed performed on the Internet. Internet. ANS: F 2. Internet based procurement includes includes trade exchanges among among companies competing for the same market. ANS: T 3. Dynamic pricing is enabling more more middlemen to get get jobs facilitating facilitating buying and selling of goods goods on the Internet. ANS: F 4. To be connected any time from any place to the back-office back-office system can provide provide a competitive competitive advantage. ANS: T 5. A company that provides provides the management management of applications applications for a company company over a network network is called a BOP, BOP, a back-office provider. ANS: F 6. ASPs are experts in delivering IS applications.
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ANS: T 7. A portal is a customized Web site that serves as a home base for individual workers. ANS: T 8. Web services are shops on on the Internet Internet where consumers consumers can buy buy a variety of items. ANS: F 9. XML is similar to HTML in that it only describes describes the display of the information on a web page. page. ANS: F 10. An RFID is a small tag that includes includes a microprocessor microprocessor and an antenna. ANS: T 11. The best way for a university to run a large ERP package like SAP SAP for education purposes purposes only (i.e. teaching in the classroom and labs) would be to run an ASP. ANS: T MULTIPLE CHOICE
1. Which of the following following is a functional functional area of operation? operation? a. Packaging c. Shipping d. Baking b. Supply Chain Management ANS: B 2. Which business business function function is performed by Accounting and Finance? c. Benefits a. Cost allocation and control b. Taking sales orders d. Plant maintenance ANS: A 3. What are the computers, computers, people, procedures, procedures, and software that that store, organize, and deliver information in an organization? a. The CPU c. Information systems b. The Process System d. Personnel systems ANS: C 4. Today’s managers are beginning to think in terms of business process. A business process cuts across which functional areas of operation? a. Marketing and Sales d. Human Resources b. Supply Chain Management e. All of the above c. Accounting and Finance ANS: E
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5. Information systems systems that can be designed designed so that functional areas of of operation share data are called: c. Non-middleware information information systems a. Integrated information systems b. Complete information systems d. Linked information systems ANS: A 6. Analyses that that attempt to predict the future sales of a product product are called: called: c. Sales diving a. Sales forecasts b. Sales divining d. Sales deriving ANS: A 7. Which of the the following is an input input to the the Marketing and Sales functional functional area? a. Production plans c. Per-unit cost b. Raw material orders d. Accounts payable data ANS: C 8. Which of the following following outputs outputs would emerge emerge from the Accounting Accounting and Finance functional area? a. Packaging orders c. Regulation compliance b. Sales strategy d. Financial reports ANS: D 9. When purchasing a computer, the functional area responsible for handling the financial help for purchasing that computer computer is a. Marketing and Sales c. Supply Chain Management d. Human Resources b. Accounting and Finance ANS: B 10. When purchasing a computer, the functional area responsible for technical support is c. Supply Chain Management a. Marketing and Sales b. Accounting and Finance d. Human Resources ANS: A 11. When manufacturing runs out of raw material, it’s known as a(n) a. Shortfall c. Depletion b. Empty shelf d. Stockout ANS: D 12. ____ results in management management overinvesting overinvesting in extra raw materials a. Bulging raw materials c. Safety stock b. Stockup d. Excess baggage ANS: C 13. Which of the following following is an input to to HR? a. Personnel forecasts b. Sales data
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c. Layoff and recall company policy d. Travel expense company policy
ANS: A 1. The complex software software and hardware hardware required for ERP systems systems was not available until the a. 1960s c. 1980s b. 1970s d. 1990s ANS: D 2. The observation that that the number number of transistors built onto a computer chip doubles doubles every 18 months is known as: c. Doubleting a. Moore’s Law b. Gate’s Prophesy d. Acceleration ANS: A 3. When a piece of equipment’s capacity is exceeded, its capacity can be increased by adding new hardware. This is commonly known as: a. Adaptability c. Scalability b. Middleware d. Computability ANS: C 4. In the 1980s, ____, ____, the technology technology that holds data in an organized organized fashion, existed existed for ERP development. development. a. Spreadsheets c. Client/Server d. Word-processors b. DBMS ANS: B 5. ____ software allows allows a plant manager manager to plan production production and raw materials requirements requirements by working working backward from the sales forecast. a. DBMS c. MRP b. EDI d. EFT ANS: C 6. The direct computer-to-computer computer-to-computer exchange of standard standard business business documents is known as: a. MRP c. EDI b. E-mail d. DDS ANS: C 7. Software ____ are individual individual programs programs that can be purchased, purchased, installed, installed, and run separately, separately, but extract data from the common database. a. Nodes c. Modules b. Chunks d. Tidbits ANS: C 8. When third party software companies are able to write software to integrate integrate with an ERP system, it is said to have: c. Integrated pieces a. Open architecture b. Clip-ons d. Piecemeal nodes ANS: A
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9. Old information information and and computer computer systems systems are known as: a. Dinosaurs c. Legacy systems b. Passe systems d. Aged ones ANS: C 10. ____ is SAP’s biggest competitor. competitor. a. J.D. Edwards b. PeopleSoft
c. Microsoft d. Oracle
ANS: D 11. Which R/3 module records sales orders? a. SD b. MM
c. PP d. QM
ANS: A 12. Which R/3 module records records transactions transactions in the general ledger? a. CO c. FI b. WF d. PS ANS: C 13. After a company chooses the modules modules they want to to implement, they must decide on on about ____ options, which allow the customer to customize the modules to fit their business to some extent. a. Settings c. Optional d. Tandem b. Configuration ANS: B 14. Which of the the following is a benefit benefit to running running an ERP ERP system? a. Global integration b. Elimination of updating and repairing multiple systems c. Capability to manage operations, not just monitor them d. All of the above are benefits ANS: D 15. An ERP system for a large company will cost ____, ____, including software, software, training, and implementation. c. $1-5 billion a. $50-500 million b. $1-5 million d. $50,000-$500,000 ANS: A 16. SAP’s internal programming language is called: a. R/3 c. Visual Basic b. C++ d. ABAP ANS: D 17. One assessment of a project’s value is calculated by the: a. DVT c. ROI
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b. PMT
d. PPT
ANS: C 18. Bumpy rollouts rollouts of ERP systems systems are usually usually caused caused by: a. Software problems c. Hardware problems d. Configuration problems b. People problems ANS: B 19. The statistical statistical and logical logical analysis of large sets sets of transaction transaction data is called: a. Digging c. Data mining b. Hunting d. Hacking ANS: C 20. ____ is the conducting conducting of business over over the Internet. a. R/3 c. E-Commerce b. ABAP d. SCM ANS: C 21. Tolerance groups can be set in the the SAP system as shown below. A tolerance setting is an example of one one of the many _____________ settings in the SAP system. ANS: C 22. Individual information information systems systems for each functional area in a company are known known as c. Tubers a. Silos b. Bagpipes d. Separated systems ANS: A 23. Which ERP package is a popular software software choice for managing managing human resources and financial activities activities at universities? a. SAP c. Microsoft Dynamics d. J.D. Edwards b. PeopleSoft ANS: B 24. Which of the the following modules in SAP ERP maintains maintains production information. a. SD c. PP b. MM d. QM ANS: C 25. Which of the following following module in SAP is a set of tools that that can automate the the activities in SAP ERP? c. Financial Accounting a. Workflow b. Controlling d. Project System ANS: A 26. What are software that that enables systems systems to exchange data without complicated software software links? a. ABAP modules c. Legacy systems
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b. Web Services
d. Best practices
ANS: B 1. In SAP ERP the electronic evidence of a transaction is called a ____. a. trail d. audit number b. marker e. document c. tag ANS: E 2. A customer calls up up to find out how much 1000 units of of a product would would cost. This is an example of: of: ____ in the sales and distribution distribution process. d. Delivery and Billing a. Pre Sales Activities b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: A 3. A customer is granted granted a 10% price price discount in a large order. This This is an example example of an activity in: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: B 4. A customer's order is checked to see if it can be produced and delivered delivered by the the requested date. This This is an example of: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: C 5. A customer's documents documents are released to the warehouse so that the goods can be gathered, packed packed and boxed. This is an example of: ____ ____ in the sales and distribution distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: D 6. A customer's remittance remittance causes Cash to to be debited and Accounts Receivable Receivable to be credited. This is an example of: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: E 7. In SAP ERP, the history history of a transaction transaction (such as a sales sales order) can be researched by looking at its ____. a. Trail mix d. Material Master Data
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b. Transaction index c. Document flow
e. Sales Master Data
ANS: C 8. What kind of software can give give top management an overview of a company's complete relationship with with a customer? a. One to One Marketing Software b. Open Relationship Software c. Denouement Software d. Customer Relationship Management Software e. Supply Chain Management Software ANS: D 9. In the sales order order process, there is a number used in the the SAP ERP sales order order that in a paper paper process would be pre- printed on the sales document, document, usually in sequential sequential number order. It’s assigned by the the customer to the sales sales order. What is this number? a. Customer ID c. Material Number b. Purchase Order Number d. Billing Code ANS: B 10. Setting prices for customers customers can be be very complex. SAP helps by offering a control mechanism, called ____, to determine how much to charge charge a given customer for a given product. product. a. Pricing Variance c. Condition Technique b. Price Fixing d. Fluctuation ANS: C 11. The ____ system system communicates with SAP ERP, BW, and APO systems in developing developing and executing executing its plans. a. PPO c. CRM b. SSA d. GUp ANS: C 12. This software can automatically route customers who contact the company company to a sales representative. representative. Companies can use this software to forecast customer c ustomer needs. a. Marketing encyclopedias c. One-to-one marketing b. Sales campaign management d. Sales force automation ANS: D 13. The SAP ERP system allows allows users to define various various ways to group customers customers and salespeople. These groups are called ____. a. Organizational structures c. Document flows b. Master data d. Audit trails ANS: A 14. In ____ CRM, the software software and equipment equipment reside with the CRM provider; it is not installed installed in-house. a. Walk-up c. Internet
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b. On-demand
d. ERP
ANS: B 15. Which of the following following are benefits to CRM? a. Lower costs b. Higher revenue c. Improved strategy and performance measurement d. All of the above ANS: D
1. A a. b. c. d.
make-to-stock make-to-stock production system is one one where: where: Items are made for inventory in ventory in anticipation of sales orders Items are produced to fill specific customer c ustomer orders Items are assembled for a specific customer order from an inventory of components Both a and c
ANS: A 2. An a. b. c. d. e.
unexpected unexpected increase in product product demand can lead to: A depletion of finished goods inventories A depletion of raw materials inventories Increased overtime and transportation expenses Both a and b All of the above
ANS: E
3. What is the the sales forecast forecast for June of this this year that that Fitter Snacker Snacker should use? a. 6,628 c. 6,935 d. 7,143 b. 7,128 ANS: B 4. What is the maximum maximum number of cases they can produce produce in the month if they schedule schedule workers for overtime on the weekdays only? a. 7,666 c. 9,582 d. 10,249 b. 9,199 ANS: B 5. What is the maximum maximum number of cases they can produce produce in the month if they schedule schedule workers for overtime on weekdays and Saturdays? a. 7,666 c. 9,582 b. 9,199 d. 10,249 ANS: D 6. The production plan at Fitter Fitter Snacker calls for 4,134 4,134 cases of of snack bars in January. If there are 22 22 days in the month, how many cases of snack bars should be produced in a 4-day week?
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a. 188 b. 752
c. 940 d. 1034
ANS: B 7. What Planned Planned Orders Orders will the MRP logic create: create: a. An order for 44,000 units in Period 2 b. An order for 44,000 units in Period 3 c. An order for 44,000 units for periods 2 and 3 d. An order for 88,000 units for period 3 ANS: A 8. What will the On Hand inventory inventory be in Period Period 5 after the system calculated planned orders? a. 0 c. 8,038 b. 440 d. 14,038 ANS: C 9. After MRP is run in the the SAP R/3 system: system: a. The stock/requirements list and MRP list are both updated and show the same information. b. The MRP list is updated but the stock/requirements list is unaffected. c. The stock/requirements list is updated but the MRP list is unaffected d. None of the above. ANS: A 10. In detailed production scheduling, longer production production runs of a particular product: a. Increase the available capacity by reducing the frequency of setups. b. Increases finished goods inventory levels. c. Reduces finished goods inventory levels. d. Both a and b. e. Both a and c. ANS: D 11. The order of the steps in the SAP R/3 production production planning planning process are: a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP b. Sales Forecasting, Demand Planning, Demand Management, MRP c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management d. Sales Forecasting, Sales and Operations Planning, Demand Management, MRP ANS: D 12. The production plan for Fitter Fitter Snacker calls calls for 7000 7000 cases for the snack bar product group in June. If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars, how many NRG-A bars should be produced in June? a. 500 c. 4690 b. 2010 d. 7000 ANS: C
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13. The costs it normally takes to manufacture a product, product, which is calculated calculated from historical historical costs and any changes from that, are known as: c. Known costs a. Standard costs b. Abbreviated costs d. Estimated costs ANS: A 14. ____ are disaggregated to generate generate detailed production schedules. a. Bills of materials c. Internet sales orders b. Production runs d. Rough-cut plans ANS: D 15. What is the production production plan plan for all finished finished goods? c. PPR - production planning run a. MPS - master production schedule b. QQR - quality query run d. RUN - run ANS: A 16. What process answers the question “What do we need to order to produce the product, and when do we need to order these raw materials?” a. SF - sales forecasting c. MRP - materials requirements planning b. SOP - sales and operations planning d. DS - detailed scheduling ANS: C 17. What metric tracks tracks the number number of times times a supplier supplier meets the agreed upon upon delivery date? a. Initial fill rate c. On-time performance b. Initial order lead time d. cash-to-cash cycle time ANS: C 19. In the following following figure, what is B? a. Starting Inventory b. Detailed Scheduling
c. Sales Forecasting d. MRP
ANS: A 20. In the following following figure, what is C? a. Starting Inventory b. Sales Forecasting
c. MRP d. Detailed Scheduling
ANS: D 21. In the following following figure, what is D? a. Starting Inventory b. Detailed Scheduling ANS: D
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PTS: 1
c. Sales Forecasting d. MRP REF: 83
22. What stage of the production planning process splits Fitter Snacker’s monthly production planning values into finer time periods? a. Sales Forecasting c. MRP b. BOM d. Demand Management ANS: D
1. Periodically, companies summarize the balances in the books of account. This process process is called: called: ____. a. Cost accounting d. Closing the books b. Account closure e. Statement wrap-up c. Periodic closure ANS: D 2. Assume a company records its transactions transactions in an ERP system. On the shop shop floor, a production production run has just been finished and the finished finished goods are transferred to to the warehouse for storage. storage. What would a likely way be to tell the ERP system about this event? a. The bar codes on the goods are scanned as they enter the warehouse. The data generated is passed to the ERP database electronically. b. A Production clerk summarizes the data in an Excel spreadsheet and sends the spreadsheet to Accounting. An Accounting clerk enters the data from the spreadsheet into the ERP program's Materials and Production Production modules. c. The bar codes on the goods are scanned as they come off the production line. The data generated is passed to the ERP system's Production module electronically. Then bar codes on the goods are scanned as they enter the warehouse. The data generated is passed to the ERP database electronically. ANS: A 3. A specialized database used for data analysis analysis purposes purposes is called a: ____. ____. d. document pile a. data warehouse b. drill down store e. data union c. document flow ANS: A 4. Which financial statement statement shows account balances such such as, cash held, amounts owed to the company by by customers, the cost of raw materials and finished goods inventory? a. Income statement c. Tolerance group d. Year end report b. Balance sheet ANS: B 6. ____ are often often allocated based on total machine hours or total total labor hours. hours. a. Direct costs c. Overhead costs b. Plant costs d. Manmade costs ANS: C 7. In ____, activities activities associated with with overhead cost cost generation are identified identified and then then records are kept on the costs and on the activities. c. ROTM, run of the mill costing a. ABC, activity-based costing
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b. BOC, backoffice costing
d. POC, plant operation costing
ANS: A 8. Each transaction transaction in SAP ERP gets its own unique unique number. number. This is known as: ____. a. Uniqueness numbering c. Auditing codes d. Unique codes b. Document flow ANS: B
11. Another name name for an income income statement statement is a ____. ____. a. Credit c. Sales d. Revenue b. Profit and Loss ANS: B 12. In an ERP system, the balance sheet and P&L statements are: ____. ____. a. Generated yearly c. Reports b. Not available d. Modules ANS: C 13. What is the advantage advantage to credit management management in SAP ERP? a. Marketing and Sales get weekly reports c. Payments are posted daily d. There is no advantage b. The data is in real-time ANS: B 14. Given that the cost of manufacturing manufacturing NRG-A bars is $0.72 per bar, how much does FS need to charge to make a profit of $0.25? a. $1.00 c. $0.97 b. $0.99 d. $1.25 ANS: C 15. For Fitter Snacker, the sum of direct materials, materials, production overhead, overhead, and direct labor is the ____. ____. c. COGP - cost of goods produced a. COGM - cost of goods manufactured b. COGS - cost of goods sold d. COGS - cost of goods shipped ANS: A 16. The following following screen in SAP is an example of ____. 17. The two key pieces pieces of information information for a cost analysis analysis is the direct material and the direct ____. c. Driver a. Labor b. Overhead d. Selling cost ANS: A 18. If Fitter Snacker’s cost of making a case of bars is $209.82, and there are 24 bars to a box and 12 boxes to a case, how much money does it cost Fitter Snacker to make each individual bar?
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a. $17.49 b. $1.00
c. $8.74 d. $0.72
ANS: D 1. The tasks associated with with managing a company's workforce is now known as ____. a. Human capital management c. Workforce management b. Resource management d. Hiring management ANS: A 2. The job of managing managing salary benefits benefits provided to each employee and confirming that that the proper benefits benefits are disbursed to new and current employees falls under the ____ department. a. Accounting and Finance c. Individual d. Administrative b. Human Resources ANS: B 3. To record employee working times, SAP ERP uses ____. a. Punched cards c. CATS (cross application time sheets) b. RFIDs d. Multiple databases ANS: C 4. The parts of an employee's pay that is comprised of base pay, bonuses, bonuses, gratuities, overtime, overtime, sick pay , and vacation allowances are known as ____. a. Payroll run c. Voluntary deductions b. Statutory deductions d. Remuneration elements ANS: D 5. ____ are skills or abilities associated associated with a position, while ____ are skills skills or abilities associated with a specific employee. a. Qualifications, requirements c. Duties, tasks d. Tasks, duties b. Requirements, qualifications ANS: B 6. A plan for replacing key employees employees is known as a ____. a. Duty roster c. Succession plan b. Replacement circular d. Reincarnation study ANS: C 7. SAP's ERP helps the the administration of employees taking taking time off under under a government act that allows compensation for family and medical medical problems. This act, passed in 1993, is the the ____. a. FIA c. FMLA b. QOTA d. PROBA ANS: C 8. Which functional part of the organization organization communicates communicates changes in salaries, benefits and policies to employees? a. Sales and Marketing c. Accounting and Finance
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b. Supply Chain Management
d. Human Resources
ANS: D 9. What is the source of Fitter Snacker’s problems with Human Resources? a. Inaccurate information c. Inconsistent information b. Out-of-date information d. All of the above ANS: D 10. What is the name name of the group of candidates selected selected to be interviewed interviewed by Fitter Fitter Snacker for a particular particular position? For example, assume 20 applicants applicants applied and only 3 were were selected to be interviewed. c. Final Three a. Short list b. Select group d. Applicants ANS: A 11. What does the acronym, acronym, CpH stand for? a. Cost per Health Care Employee b. Cost per Hire
c. Cost per Head d. Cost per Healthy Worker
ANS: B 12. In February 2007, a federal appeals court court approved class-action class-action status for a discrimination lawsuit brought by seven women women against the retailer, ____. c. Sears a. Wal-Mart b. Target d. K-Mart ANS: A 13. The process of determining each employee’s pay is called a ____. c. Cash-out a. Payroll run b. Weekly round-up d. Remunerations session ANS: A 14. The SAP ERP system evaluates the input input data to payroll payroll and notes notes any discrepancies discrepancies in a(n) ____. ____. a. Payroll report c. Discrepancy list b. Error log d. Off-target list ANS: B 15. An outgrowth of of the ____ (referenced in Chapter 5) is is that companies must account for for the expected costs costs that occur as a result of long-term incentives such as the exercising of stock options. a. Income Statement c. Consolidated statements b. Balance Sheet d. Sarbanes-Oxley Act 1. A graphical representation of a business business process is known best as a ____. a. Subject c. Flowchart b. Morh d. Dia-process ANS: C
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2. When doing process mapping, mapping, one of the the most important important tasks tasks is to define the ____. These define which activities are to be included in the process. a. Scales c. Legends d. Scopes b. Process boundaries ANS: B 3. Beyond the simple simple tools of flowcharting, flowcharting, a helpful helpful tool called ____ allows one to describe a business process in greater or less detail detail depending on the task at hand. c. Detail focused charting a. Hierarchical modeling b. Drill down staging d. Magnifying glass charting ANS: A 4. A deployment deployment flowchart is also known as a ____. a. Event process chain flowchart c. ERP flowchart d. Best practices flowchart b. Swimlane flowchart ANS: B 5. In value analysis, analysis, which of the following activities activities should should be eliminated? eliminated? a. Real value c. No value b. Business value ANS: C 6. In value analysis, analysis, which of the following activities activities is defined as as value for which the customer is willing to pay? c. No value a. Real value b. Business value ANS: A 7. Which software software program automates the execution of business business processes? processes? a. SAP Wizard c. Workflow b. ASAP d. Swimlane ANS: C
COMPLETION
1. ____________________ ____________________ programs programs are core software used used by companies to coordinate information in every area of the business. ANS: Enterprise Resource Planning (ERP) 2. A collection of activities that that takes one or more more kinds of input input and creates an output output that is of value to the customer is called a ____________________. ____________________. ANS:
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business process 3. The business functions functions of financial financial accounting, accounting, cost allocation and control, planning planning and budgeting, budgeting, and cash-flow management take place in the ____________________ ____________________ functional area of operation. ANS: Accounting and Finance (A/F) PTS: 1
REF: 2
4. One example of the the business function function that happens happens in the human resource area of of operation would would be ____________________. ____________________. ANS: Recruiting and hiring Training Payroll Benefits Government compliance 5. An ____________________ ____________________ includes the the computers, people, people, procedures, and software software that store, store, organize, and deliver information. ANS: Information systems (IS) 6. Information systems systems designed so that that functional areas areas share data are called called ____________________. ____________________. ANS: integrated information systems (integrated IS)
7. A shortfall of raw materials materials is known known as a ____________________. ____________________. ANS: Stockout
8. To avoid stockouts, stockouts, manufacturers might carry extra raw materials known as ____________________. ____________________. ANS: Safety stock 1. ____________________ ____________________ states that the number number of transistors on a computer chip chip doubles every every 18 months. ANS: Moore’s Law 2. When the network’s capacity can be expanded by the addition of a server, it’s called ____________________. ____________________.
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ANS: Scalable Scalability 3. The technology to hold data in an organized fashion, fashion, and to retrieve retrieve that data easily, is the ____________________. ____________________. ANS: database management system (DBMS) 4. ____________________ ____________________ software software allows a plant manager manager to plan production and raw materials materials requirements by working backward from the sales forecast. ANS: MRP 5. The prediction prediction of future sales sales is the __________________ ____________________. __. ANS: sales forecast 6. ____________________ ____________________ is the direct computer-to-computer exchange of standard standard business business documents. ANS: Electronic data interchange interchange (EDI)
7. SAP is the abbreviation abbreviation for ____________________. ____________________. ANS: Systems Analysis and Program Development Development
8. In ____________________, ____________________, third-party software software companies are encouraged to develop add-on software products that can be integrated integrated with existing software. ANS: open architecture
9. Old systems systems are known known as as _______________ ____________________. _____.
ANS:
10. SAP’s biggest competitor is ____________________. ANS:
legacy systems Oracle
11. In an ERP system, all modules access the ____________________. ____________________. ANS:
central database
12. After a company chooses its major modules, it chooses chooses from an assortment assortment of __________________ ____________________ __ options. ANS: configuration 13. R/3’s design incorporates ____________________, ____________________, which means that R/3 designers choose the bes t, most efficient ways in which business processes should be handled. ANS: best practices
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14. SAP’s internal programming language is ____________________. ____________________. ANS: ABAP 15. An assessment of an investment’s project value that is calculated by dividing the value of the project’s benefits by the value of the the project’s cost is known known as a(n) ____________________. ____________________. ANS: ROI 16. The statistical and logical analysis analysis of large sets sets of transaction transaction data is known known as __________________ ____________________. __. ANS: data mining 17. ____________________ ____________________ is the conducting conducting of business business over over the Internet. ANS: E-commerce 1. The goal of ____________________ is to provide a “single face to the customer.” ANS: Customer Relationship Management software (CRM software) 2. With ____________________, ____________________, the the R/3 system automatically checks all facilities and determines the the most cost-efficient cost-efficient facility to use to meet the customer’s request in terms of ordering and delivering goods. ANS: Global ATP (Global Available-To-Promise) Available-To-Promise)
4. In the following diagram showing “Taking an Order in S AP ERP”, what is B? ____________________ ____________________ ANS: PO Number 5. In the following diagram “Taking an Order in SAP ERP”, what is C? ____________________ ANS: Required Delivery Date 6. In the following diagram “Taking an Order in SAP ERP”, what is D? ____________________ ____________________ ANS: Material and Order Order quantity quantity 2. ____________________ ____________________ refers to the process of determining production production quantities quantities (for raw materials produced in-house) and order order quantities (for purchased items). items). ANS: Lot sizing
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3. Any business business events that that occur between between companies and their subsidiaries subsidiaries are known as ____________________. ____________________. ANS: Intercompany transactions 4. With a properly properly configured configured and managed managed ERP system, system, there are direct direct links links between the company’s ____________________ ____________________ and individual individual transactions that that make up the statements, so that that fraud and abuse can be detected more easily. ANS: financial statements
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