Chapter 2: 2.3 Enterprise Resource Planning (ERP) Systems
Which of the following are advantages of ERP systems? (Check all that apply.)
Procedures and reports are standardized across business units.
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
Top management's commitment to an ERP system greatly increases the chances of success.
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
ERP systems integrate all aspects of a company's operations with a traditional AIS.
Which of the following are advantages of ERP systems? (Check all that apply.)
ERP systems provide an integrated, enterprise-wide view of an organization's data and financial situation.
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
ERP systems use a centralized database to share information across business processes and coordinate activities.
Which of the following are advantages of ERP systems? (Check all that apply.)
Management gains greater visibility into every area of the enterprise, and greater monitoring capabilities.
ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.)
Financial—general ledger, budgeting, cash management, and preparation of managerial reports and financial statements
Which of the following are disadvantages of ERP systems? (Check all that apply.)
It can take years to select and fully implement an ERP system.
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
One way to choose a suitable ERP system is to select a package designed for your industry.
ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.)
Order to cash—sales order entry, shipping, inventory, cash receipts, and commission calculation
ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.)
Project management—costing, billing, time and expense, performance units, and activity management
ERP systems are modular, with each module handling a standard business process. This modular design allows businesses to add or delete modules as needed. Which of the following are typical ERP modules mentioned in the text? (Check all that apply.)
System tools—tools for establishing master file data, specifying flow of information, and access controls
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
The importance of sound internal controls in an ERP system cannot be overstated.
Which of the following are disadvantages of ERP systems? (Check all that apply.)
They are complex because they have to integrate many different business activities and systems.
Which of the following are disadvantages of ERP systems? (Check all that apply.)
Usually companies must adapt their processes to standardized ERP business processes.
Which of the following statements about ERP systems is(are) true? (Check all that apply.)
Well-designed ERP systems provide management with the easy access to up-to-date information needed to plan, control, and evaluate business processes more effectively.