ACC 535: MIDTERM: CHAPTER 2 & 3
Which of the following are the two primary categories of e-business over the web? Question 8 options: Client and server relationships Networks and network providers Assurance providers and vendors B2B and B2C
2 PRIMARY CATEGORIES OF E-BUSINESS OVER THE WEB: B2B & B2C
In what circumstances would a company choose a best-of-breed approach over a traditional ERP system?
A company would choose a BEST-OF-BREED approach if their process is nonstandard, and available third party software provides a significantly better method of handling that process. The company would need to have internal (or external) technical capability to integrate and support upgrades of the individual components of their best-of-breed system.
Core applications of an ERP are Question 1 options: financial accounting materials management sales and distribution all of the above
ALL OF THE ABOVE CORE APPLICATIONS OF AN ERP: -FINANCIAL ACCOUNTING -MATERIAL MANAGEMENT -SALES & DISTRIBUTION
In EDI, the software that includes the purchasing system at the origin and the order entry system at the destination is known as Question 10 options: translation software value-added network (VAN) the communications network application software
APPLICATION SOFTWARE
After the core of an ERP system has been implemented, any of the modules may then be implemented separately. What is the implication of being able to implement an ERP system on a piece-by-piece basis?
An ADVANTAGE of being able to implement individual modules is that you can choose best-of-breed software. Also, a partial implementation can be done more quickly and the benefits received earlier. The remainder of the implementation can proceed as needed and as resources permit. A DISADVANTAGE might be that you may not experience the benefits of full integration and may need to create links between modules from different vendors.
Back-office functions include: Question 1 options: customer interface supplier interface purchasing accounting
BACK OFFICE FUNCTIONS: -ACCOUNTING FRONT OFFICE FUNCTIONS: -CUSTOMER INTERFACE -SUPPLIER INTERFACE -PURCHASING
Which of the following is not a benefit of electronic data interchange (EDI)? Question 7 options: enables continued business with certain business partners improved responsiveness to customers' needs providing timely and accurate data training employees
BENEFIT OF ELECTRONIC DATA INTERCHANGE (EDI): -ENABLES CONTINUED BUSINESS WITH CERTAIN BUSINESS PARTNERS -IMPROVED RESPONSIVENESS TO CUSTOMER' NEEDS -PROVIDING TIMELY AND ACCURATE DATA NOT A BENEFIT OF ELECTRONIC DATA INTERCHANGE (EDI): -TRAINING EMPLOYEES
Which of the following is not a benefit of Internet commerce? Question 8 options: maintaining security of the Internet site improved responsiveness to customers' needs survival in a competitive industry global penetration
BENEFITS OF E-COMMERCE: -IMPROVED RESPONSIVENESS TO CUSTOMERS' NEEDS -SURVIVAL IN A COMPETITIVE INDUSTRY -GLOBAL PENETRATION NOT A BENEFIT OF E-COMMERCE: -MAINTAINING SITE SECURITY OF THE INTERNET SITE
Internet market exchanges: Question 10 options: restrict those that can participate eliminate the need for credit and background checks bring together buyers and sellers in the same industry are approved by the Federal Trade Commission (FTC)
BRING TOGETHER BUYERS AND SELLERS IN THE SAME INDUSTRY
An online transaction entry (OLTE) system merges the traditional subprocesses of: Question 8 options: business event occurrences and record business event data business event occurrences and update master data business event occurrences and generate outputs record business event data and update master data
BUSINESS EVENT OCCURRENCES & RECORD BUSINESS EVENT DATA
This provides a comprehensive method for integrating manual and automated internal processes, applications, and systems, as well as integration to external partners and services. Question 9 options: Application Programming Interface (API) Business Process Management (BPM) Enterprise Resource Planning (ERP) Event-driven architecture (EDA)
BUSINESS PROCESS MANAGEMENT (BPM)
The enterprise system might facilitate the purchase of office equipment by all of the following except Question 1 options: providing an electronic order form (a purchase requisition) assisting the vendor with the selection of the appropriate purchase order routing the order to appropriate authorities for specific approval making data available for management analysis
CAN FACILITATE PURCHASE : -providing an electronic order form (a purchase requisition) -routing the order to appropriate authorities for specific approval -making data available for management analysis CANNOT FACILITATE PURCHASE: -assisting the vendor with the selection of the appropriate purchase order
The CONTROLLING AND PROFITABILITY ANALYSIS module of the SAP system HANDLES INTERNAL ACCOUNTING INCLUDING COST CENTER ACCOUNTING, ACTIVITY-BASED ACCOUNTING, & BUDGETING. Question 10 options: human resources controlling and profitability analysis financial accounting customer relationship management
CONTROLLING AND PROFITABILITY ANALYSIS
Software that builds and maintains an organization's customer-related database is known as Question 10 options: customer relationship management (CRM) software customer self service (CSS) software sales force automation (SFA) software supply chain management (SCM) software
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SOFTWARE
Software that allows an organization's customers to complete inquiry without the aid of the organization's employees is known as Question 7 options: customer relationship management (CRM) software customer self service (CSS) software sales force automation (SFA) software supply chain management (SCM) software
CUSTOMER SELF SERVICE (CSS) SOFTWARE
Electronic document management (EDM) systems are capable of performing all of the following except: Question 2 options: capture of data storage of data control of data creation of data
ELECTRONIC DOCUMENT MANAGEMENT (EDM) SYSTEMS: CANNOT PERFORM: -CREATION OF DATA CAN PERFORM: -CAPTURE OF DATA -STORAGE OF DATA -CONTROL OF DATA
An approach to designing and building enterprise systems in which business events trigger messages to be sent by middleware between independent software modules that are completely unaware of each other. Question 8 options: Application Programming Interface (API) Business Process Management (BPM) Enterprise Resource Planning (ERP) Event-driven architecture (EDA)
EVENT-DRIVEN ARCHITECTURE (EDA)
A device that is not directly connected to the central computer or network is referred to as an online device. Question 9 options: True False
FALSE
An organization creates a competitive advantage by creating less value for its customers than does its competition. Question 3 options: True False
FALSE
Data maintenance refers to the recording of business event data and transactions. Question 1 options: True False
FALSE
It is best to combine authorization of data-maintenance activities with authorization of business event processing activities. Question 6 options: True False
FALSE
Supporting activities of the value chain include activities directly involved with marketing, producing, selling, and delivering the product or service to the customer. Question 6 options: True False
FALSE
With a BEST-OF-BREED approach an organization can minimize the number of different software modules employed to implement an enterprise system. Question 10 options: True False
FALSE
Electronic data interchange (EDI) is the capture, storage, management, and control of electronic document images for the purpose of supporting management decision making and facilitating business event processing. Question 1 options: True False
FALSE ELECTRONIC DOCUMENT MANAGEMENT (EDM) is the capture, storage, management, and control of electronic document images for the purpose of supporting management decision making and facilitating business event processing.
Batch mode is the data processing mode in which there is little or no delay between any two data processing steps. Question 7 options: True False
FALSE IMMEDIATE MODE is the data processing mode in which there is little or no delay between any two data processing steps.
The correct sequence of the three steps in the materials management process is (1) record vendor invoice (2) create purchase order (3) receive the goods. Question 6 options: True False
FALSE MATERIAL MANAGEMENT PROCESS: ???
Processes that include distribution, manufacturing, and accounting operations are front office processes. Question 7 options: True False
FALSE: BACK OFFICE PROCESSES: -DISTRIBUTION -MANUFACTURING -ACCOUNTING
Which of the following statements is false? Question 8 options: Value chain activities need to be closely coordinated. Primary value chain activities include marketing and sales. An organization's value chain is the only component of the value system. None of the statements are false.
FALSE: An organization's value chain is the only component of the value system. TRUE: Value chain activities need to be closely coordinated. TRUE: Primary value chain activities include marketing and sales.
The FINANCIAL ACCOUNTING module plays a central role in the SAP system by COLLECTING BUSINESS EVENTS FROM OTHER MODULES. Question 9 options: human resources controlling and profitability analysis financial accounting customer relationship management
FINANCIAL ACCOUNTING
The processing mode in which there is no or little delay between any two data processing steps is referred to as: Question 6 options: imperial mode periodic mode immediate mode passive mode
IMMEDIATE MODE
In BATCH PROCESSING, business event data are collected and processed Question 4 options: as soon as possible in groups for more timely processing in groups using OLRT systems
IN GROUPS
___ includes functions related to accounting events, internal operations and financial statement preparation Question 3 options: batch processing information processing periodic processing data maintenance
INFORMATION PROCESSING
?LANs? are communication networks that link several different local user machines with printers, databases, and other shared devices. Question 5 options: Wide area networks (WANs) Client/server technology Local area networks (LANs) The Internet
LOCAL AREA NETWORKS (LANs)
Systems that gather business event data at the time of occurrence, update the master data essentially instantaneously, and provide the results arising from the business event within a very short amount of time are referred to as: Question 5 options: online transaction entry (OLTE) online real-time (OLRT) online transaction data (OLTD) electronic document management (EDM)
ONLINE REAL-TIME (OLRT)
What is the correct sequence of the order-to-cash process? Question 3 options: sales order processing; pick and pack; shipping; billing; payment; responding to customer inquiries sales order processing; responding to customer inquiries; pick and pack; shipping; billing; payment sales order processing; pick and pack; billing; shipping; payment; responding to customer inquiries responding to customer inquiries; sales order processing; pick and pack; shipping; billing; payment
ORDER-TO-CASH PROCESS: 1) RESPONDING TO CUSTOMER INQUIRIES, 2) SALES ORDER PROCESSING 3) PICK & PACK 4) SHIPPING 5) BILLING 6) PAYMENT
Which of the following tracks a product from design, continuing through manufacture, and culminating with the disposal of the product at the end of its life? Question 6 options: supply chain management (SCM) value chain product life cycle management (PLM) none of the above
PRODUCT LIFE CYCLE MANAGEMENT (PLM)
What is the first step in the purchase-to-pay process? Question 2 options: purchase order processing pick and pack requirements determination goods receipt
PURCHASE-TO-PAY PROCESS: 1) REQUIREMENTS DETERMINATION 2) PURCHASE ORDER PROCESSING, 3) GOODS RECEIPT 4) INVOICE VERIFICATION 5) PAYMENT PROCESSING
Purchasing function benefits from e-business include Question 10 options: elimination of sales staff automatic price checking by the computer interaction with supplier sales staff none of the above
PURCHASING FUNCTION BENEFITS FROM E-BUSINESS: AUTOMATIC PRICE CHECKING BY THE COMPUTER
A collection of related data fields pertaining to a particular entity or event is known as a RECORD Question 5 options: Character Field Record none of the above
RECORD
The most dominant player in the ERP market for large companies is Question 2 options: Oracle Sage SAP Microsoft
SAP
These are relatively permanent portions of master data Question 3 options: business event data data maintenance master data standing data
STANDING DATA
Software that helps execute steps such as demand planning, acquiring inventory, manufacturing, distribution, and sales is known as Question 9 options: customer relationship management (CRM) software customer self service (CSS) software supplier relationship management (SRM) software supply chain management (SCM) software
SUPPLY CHAIN MANAGEMENT (SCM) SOFTWARE
In an event-driven architecture (EDA) Question 7 options: business events are processed in batches the enterprise operates in real time the enterprise only uses modules from a single software vendor none of the above
THE ENTERPRISE OPERATES IN REAL TIME
The business environment is increasingly demanding the use of OLRT systems for more up-to-date information. Identify one business process and the environment in which it would be used as an example of why immediate mode processing is so critical.
THE LOTTERY. In a recent Powerball lottery, the winning ticket garnered a $195 million jackpot. Consider the importance of knowing which store had the winning ticket, knowing the exact number of tickets that have been sold as of the drawing in order to report the amount of the jackpot at the drawing, verifying the authenticity of the ticket, and so forth.
A disadvantage of the periodic mode is: Question 5 options: completeness accuracy validity timeliness
TIMELINESS
A FIELD is a collection of related characters that comprise an attribute, such as a customer number or name. Question 4 options: True False
TRUE
An Application Programming Interface (API) is a means for connecting to a system or application provided by the developer of that application. Question 9 options: True False
TRUE
An add-on software module in an enterprise system might be a customer relationship management system (CRM). Question 8 options: True False
TRUE
Business process management (BPM) provides a comprehensive method for integrating manual and automated internal processes, applications, and systems, as well as integration to external partners and services. Question 7 options: True False
TRUE
Customer relationship management (CRM) software builds and maintains an organization's customer-related database. Question 5 options: True False
TRUE
E-mail is the electronic transmission of nonstandardized messages between two individuals who are linked via a communications network. Question 2 options: True False
TRUE
Early adopters of ERP systems were in the business of making products. Question 4 options: True False
TRUE
Electronic store fronts are Internet-located resources for displaying goods and services for sale and for conducting related sales transactions. Question 3 options: True False
TRUE
Enterprise application integration (EAI) links together two or more systems and allows them to work together. Question 5 options: True False
TRUE
In an enterprise system, once a customer order is completed, the purchasing function can be immediately informed that the merchandise has been sold and may need to be replenished. Question 4 options: True False
TRUE
In an online transaction entry (OLTE) system, use of data entry devices allows business event data to be entered directly into the information system at the time and place that the business event occurs. Question 6 options: True False
TRUE
In event driven architecture (EDA) the business unit "pushes" the event to the recipient rather than waiting for the recipient to request or "pull", the event. Question 4 options: True False
TRUE
Information processing includes data processing functions related to accounting events, internal operations and financial statement preparation. Question 9 options: True False
TRUE
Master data are repositories of relatively permanent data maintained over an extended period of time. Question 2 options: True False
TRUE
Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface. Question 2 options: True False
TRUE
Microsoft Dynamics and Sage Group focus on small and mid market sized companies. Question 1 options: True False
TRUE
Network providers are companies that provide a link into the Internet by making their directly connected networks available for access by fee-paying customers. Question 6 options: True False
TRUE
Product life-cycle management (PLM) software manages product data from design through manufacture, and disposal. Question 7 options: True False
TRUE
SPAM is unsolicited unwanted mail. Question 4 options: True False
TRUE
Segregation of duties includes separating the sales and credit departments. Question 3 options: True False
TRUE
Standing data is relatively permanent portions of master data. Question 9 options: True False
TRUE
Supplier relationship management (SRM) software manages the interactions with the organization's that supply the goods and services to an enterprise. Question 1 options: True False
TRUE
Telling the customer when they will receive an item is known as AVAILABLE TO PROMISE (ATP). Question 5 options: True False
TRUE
The activities in the value chain, the VALUE ACTIVITIES, are business processes that convert inputs to valued outputs. Question 8 options: True False
TRUE
Web browsers are software programs designed specifically to allow users to view the various documents and data sources available on the Internet. Question 4 options: True False
TRUE
Which statement is true? Question 3 options: ERPs are infinitely scalable. Performance problems usually stem from technical problems, not business process reengineering. The better ERP can handle any problems an organization can have. TRUE: ERP systems can be modified using add-on software.
TRUE: ERP SYSTEMS CAN BE MODIFIED USING ADD-ON SOFTWARE FALSE: ERPs are infinitely scalable. FALSE: Performance problems usually stem from technical problems, not business process reengineering. FALSE: The better ERP can handle any problems an organization can have.
The correct sequence of events for entering a customer order is Question 10 options: edit order, record sales order, update inventory, notify warehouse record sales order, edit order, update inventory, notify warehouse notify warehouse, edit order, record sales order, update inventory edit order, notify warehouse, record sales order, update inventory
edit order, record sales order, update inventory, notify warehouse
What is the correct sequence of the purchase-to-pay process? Question 2 options: purchase order processing; goods receipt; invoice verification; payment processing; requirements determination requirements determination; purchase order processing; goods receipt; invoice verification; payment processing purchase order processing; requirements determination; goods receipt; invoice verification; payment processing purchase order processing; requirements determination; invoice verification goods receipt; payment processing
1) REQUIREMENTS DETERMINATION, 2) PURCHASE ORDER PROCESSING, 3) GOODS RECEIPT 4) INVOICE VERIFICATION 5) PAYMENT PROCESSING