ERP test bank.docx

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













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: 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: 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













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















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













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













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













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













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















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













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













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.













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













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















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













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 make-to-stock make-to-stock production system is one one where: where: a. Items are made for inventory in ventory in anticipation of sales orders













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













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













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















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: ____. Uniqueness numbering Auditing codes













a. $17.49 b. $1.00

c. $8.74 d. $0.72

ANS: D The tasks associated with with managing

workforce is now known as













b. Supply Chain Management

d. Human Resources

ANS: D 9. What is the source of Fitter Snacker’s problems with Human Resources? Inaccurate information Inconsistent information













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













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.







































ERP test bank.docx

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