AIS 460 chapter 6

12. Which of the following statements best describes the risks of ERP systems? A. The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems. B. The risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems, due to the scope, size, and complexity of ERP systems. C. The risks of implementing ERP systems are greater than the risks of implementing IT systems, but the operating risks are nearly identical. D. The risks of operating ERP systems are greater than the risks of operating IT systems, but the implementation risks are nearly identical.

A

17. The _________ is an integrated collection of enterprise-wide data that ideally should include 5 to 10 years of nonvolatile data. A. Data warehouse B. Data center C. Operational database D. Enterprise resource planning system

A

27. The purpose of MRP II was to integrate all of the following into a single database EXCEPT: A. Human resources B. Manufacturing C. Marketing D. Finance

A

29. Which company developed the first true ERP system? A. SAP B. Oracle C. Hyperion D. Microsoft

A

32. Select the correct statement from those provided below. A. MRP II allows interaction between suppliers and their customers via the internet or other electronic means. B. While MRP II provides automatic inventory reordering, it does not allow suppliers to see customer inventory levels. C. MRP II systems preclude e-commerce and e-business transactions due to internal security measures to protect data. D. To increase operational response times, MRP II systems utilize operational databases but not data warehouses.

A

33. Spending on ERP systems increased or decreased based on several factors. These factors include all of the following EXCEPT: A. Y2K compliance concerns B. The need for better customer service C. Multi-national sites of operation D. Compliance with the Sarbanes-Oxley Act

A

36. The financials module of an ERP such as SAP would include all of the following components EXCEPT: A. Inventory B. Financial accounting C. Management accounting D. Corporate governance

A

63. Which of the following ERP implementation methods is rarely used today due to its high rate of failure? A. Big Bang B. Location-Wise C. Modular D. Micro-Enterprise Approach (MEA)

A

64. More than one-half of ERP implementations by the ________ approach experienced significant failures or problems in the 1990s, and nearly one-third of these implementations abandoned in progress. A. Big bang B. Location-wise C. Progressive D. Modular

A

67. Benefits of an ERP system include all of the following EXCEPT: A. The real-time nature of processing increases the total processing time. B. The interactive nature of the modules allows processes to interact with each other. C. ERP systems have evolved from many years of software experience so the software reflects tried and true practices. D. There is the capability to analyze large amounts of data in a single database.

A

69. Organizational benefits of ERP implementation include all EXCEPT: A. Retaining long-held work patterns and work focus. B.Facilitating organizational learning. C.Building a common vision. D. Increased employee morale and satisfaction

A

7. The primary difference between ERP and ERP II systems is that ERP II may include: A. Internet EDI B. Logistics modules C. Reporting modules D. A data warehouse

A

70. Factors which adversely affect the implementation of an ERP system do NOT include: A. Cost B. Complexity C. Size D. Scope

A

74. The assigning of access and authority for a specific user ID is called a ________. A. User profile B. User access account C. User account D. Profile of access

A

77. To prevent issues with segregation of duties within an ERP system, the system may do which of the following? A. Limit the types of transactions each employee can perform. B. Limit access to physical hardware. C. Both A and B. D. None of the Above.

A

Which of the following advantages is least likely to be experienced by a company implementing an enterprise resource planning (ERP) system? A. Reduced cost B. Improved efficiency C. Broader access to information D. Reduced errors

A

11. Which of the following ERP approaches accomplishes the ERP implementation beginning with one department? A. The pilot method B. The modular implementation approach C. The big bang approach D. The location-wise implementation method

B

13. Select the true statement from those provided below. A. An ERP system is designed to interact with a stand-alone sales and inventory application to create general ledger information. B. An ERP system is designed to be a stand-alone software application to accomplish revenue, expenditures, conversion, and administrative processes. C. An ERP system will accomplish e-commerce but relies on other software applications for the accomplishment of e-business transactions. D. An ERP system will not collect, process, store, and report the data resulting from e-business transactions.

B

15. Which of the following is used to produce management reports that would be used to oversee day-to-day operations? A. Operational Database B. Data Warehouse C. Functional Database D. Organizational Database

B

20. MRP applications are: A. Management resource programs software B. Manufacturing resources planning software C. Management reporting programs software D. Manufacturing reporting programs software

B

21. ERP modules include all EXCEPT: A. Financial B. Operational database C. Sales and services D. Product development and manufacturing

B

25. Interfaces between modules of ERP systems would be accepted for all of the following EXCEPT: A. Sales and inventory. B. Sales and human resources. C. Sales and accounts receivable. D. Sales and manufacturing.

B

26. Material requirements planning (MRP) software: 1. Calculated raw materials quantities needed for manufacturing. 2. Calculated lead times on raw materials orders. 3. Calculated material needs on accounts payable data. A. 1, 2, and 3 B. 1 and 2 only C. 2 and 3 only D. 1 and 3 only

B

28. SAP R/3 operates on a: A. Mainframe environment with closed architecture. B. Client-server environment with open architecture. C. Client-server environment with closed architecture. D. Mainframe environment with open architecture.

B

30. The systems transition responsible for moving business processes from an internal management perspective to an interactive, internal, and external perspective is? A. The evolution of Customer Relationship Management (CRM) into Supply Chain Management (SCM) B. The evolution of ERP systems into ERP II systems C. The evolution of Electronic Data Interchange (EDI) into ERP II systems D. None of the Above

B

37. The sales and services module of an ERP such as SAP would include all of the following components EXCEPT: A. Sales order management B. Procurement C. Professional service delivery D. Incentive and commissions management

B

42. Supply chain management is: 1. The management and control of all materials. 2. The management and control of all funds related to purchasing. 3. The management of information related to the logistics process. 4. Limited to the flow of materials from vendors into the production cycle. A. 1, 2, 3, and 4 are all correct. B. 1, 2, and 3 are correct. C. 1, 2, and 4 are correct. D. 1, 3, and 4 are correct.

B

43. Processes in supply chain management: 1. Involve trading processes from a supplier to the business. 2. Involve trading processes from the business to a customer. 3. Involve trading between the business and other intermediaries. 4. Do not include any transactions once raw materials are put into production. A. 1, 2, 3, and 4 are all correct. B. 1, 2, and 4 are correct. C. 1, 2, and 3 are correct. D. 1, 3, and 4 are correct.

B

44. The term for software solutions that help businesses manage customer relationships in an organized way is: A. Sales and service B. Customer relationship management C. Corporate services D. Human capital resources

B

48. The ERP program that uses the term "back office" in reference to managerial functions and "front office" in reference to customer and sales functions is: A. SAP R/3 B. Oracle Applications C. Peoplesoft D. mySAP

B

51. ERP implementation: A. Must accomplish a full ERP system implementation. B. May install only selected modules. C. Must be done one module at a time. D. Is a short duration process due to total integration of the software.

B

53. The advantage of "best of the breed" is: A. The best functionality of the ERP system as a result of total implementation. B. The best functionality of a unique process of the organization. C. Best cost of implementation of the ERP system. D. Total integration of the ERP modules

B

55. When computerized technology is introduced into processes, the processes A. Must utilize standardized forms and screens for data entry. B. Can be radically redesigned to take advantage of the speed and efficiency of computers to improve processing efficiency. C. Data retrieval from the databases will be restricted to upper management for analysis. D. Both B and C are correct.

B

59. A consulting firm helping a company with the implementation of an ERP system will typically perform all of the following actions except: A. Evaluating and selecting an ERP system B. Hiring specialized technicians to maintain the system C. Implementing the software D. Training employees to use the system

B

6. In the late 1990s, the Y2K compatibility issue was concerned primarily with computer systems': A. File retrieval capability B. Data storage C. Human resource comparisons D. Capital budgeting

B

61. The big bang approach to implementation means that the company: A. Will buy one integrated system to accomplish all business processes. B. Implements all modules and all function areas of the ERP system at one time. C. Commences training and data cleansing throughout the organization on one date. D. Implements the business process reengineering process on a predetermined date.

B

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

B

68. ERP system benefits include all EXCEPT: A. ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers. B. ERP systems are configured upon implementation to exceed any reasonable business growth in the future. C. The ERP systems incorporate modules to conduct e-commerce and e-business. D. Analytical tools that enable detailed analysis of the data are incorporated into ERP systems

B

71. If one module in the ERP system fails, A. The rest of the system will operate correctly. B. It has the potential to stop or disrupt all processes across the entire enterprise C. That one module will automatically revert to the legacy system. D. Will result in the entire system reverting to the legacy system.

B

72. Operation risks with an ERP system includes all of the following EXCEPT: A. Security is a greater risk because processes are integrated. B. An unauthorized user can affect more processes in the legacy system. C. Incorrect data generated in a given process can automatically post flawed data to other processes. D. Online privacy and confidentiality risks are magnified.

B

75. As required by Sarbanes-Oxley, enhanced ERP systems provide feedback to management Ch 6 Test bank - 3e Page 13 of 26 regarding internal controls. To effectively use the function, there are important steps that need to be taken. 1. Establish and maintain a list of compatible duties. 2. Insure that employees are given access and authority only to those parts of the system required. 3. Periodically review the user profile and change any access and authority levels as necessary. 4. Configure the ERP system to track and report any instances where an employee initiated or records any event. 5. Monitoring the periodic reports or real-time reports by the appropriate manager to determine if user profiles have changed. A. 1, 2, 3, 4, 5 B. 2, 3, 5 C. 1, 2, 4, 5 D. 2, 3, 4, 5

B

76. With the proper implementation of an ERP system: A. Fraud due to inappropriate transaction recording is eliminated. B. Employee IDs, passwords, and segregated duties aid in internal control measures. C. Audit trails are not necessary due to ID and password security concepts. D. All of the above, A, B, and C, are correct answers.

B

78. To resolve discrepancies on invoices so that they can be paid on a timely basis, management may issue which of the following? A. Report on purchase orders created after the invoice date B. Blocked invoice Report C. Requisition Invoice Report D. Purchase Order Transcription Report

B

What company developed the first true ERP systems? A. Microsoft B. Peoplesoft C. SAP D. IBM

B

Which of the following is NOT a feature of an ERP system's database? A. Increased efficiency B. Increased need for data storage within functional areas C. Increased customer service capability D. Increased data sharing across functional areas

B

10. The type of ERP system used by large, multinational corporations is known as A. Big bang implementation B. Modular implementation C. Tier one software D. Tier two software

C

14. An ERP system uses: A. One database for each module associated with the organization - sales, inventory, human resources, etc. B. One database for manufacturing, one database for sales, one database for administrative, and one database for design and research. C. One database which contains all data items associated with the organization. D. Relational databases for interactive queries between modules and departments.

C

19. An enterprise resource planning (ERP) system allows a sales representative to provide a customer with all of the following information EXCEPT: A. Is the product in stock? B. What is the price of the product? C. What is the cost of the product? D. When will it be shipped?

C

22. ERP software operates on a(n) _________ database A. Operational B. Warehouse C. Relational D. Enterprise

C

24. Within an ERP program: A. The operational database contains five to ten years of transaction histories. B. The data warehouse is updated as daily transactions are recorded. C. The data warehouse contains five to ten years of transaction histories. D. The data warehouse information is available to sales personnel for customer histories.

C

31. Y2K compatibility issues arose because: A. Older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expense. B. Older computer systems recorded dates in mm/dd/yyyy formats and memory in older systems was unreliable. C. Old computer systems kept dates in mm/dd/yy formats. D. Memory in older systems would fail when challenged with a mm/dd/yy formatted date.

C

34. Which of the following is NOT one of the reasons for the increased spending on ERP systems since 2004? A.​Bigger IT budgets replaced leaner budgets as economic conditions improved. B.​Many companies needed upgraded systems to enhance compliance with the Sarbanes-Oxley Act. C.​Business processes were separated and standardized. D.​ERP has become so important to daily operations that many companies cannot allow their ERP system to become outdated.

C

35. Over the next few years, spending on ERP systems is expected to: A. Fall B. Stay Constant C. Rise D. Spending habits are uncertain for the future

C

38. The analytics module of an ERP system such as SAP would include all of the following EXCEPT: A. Financial analysis B. Strategic enterprise management C. Project portfolio management D. Workforce analysis

C

40. Management would use the _____________ module for feedback from the ERP system to assist in the proper management and control of operations. A. Financials B. Corporate services C. Analytics D. Human capital management

C

41. To employ analytical processes on the organization's data: A. Data mining is performed on the operational database. B. Data is uploaded to the analytics module's database. C. Data mining is performed on the data warehouse. D. Data is uploaded to the financials module's database.

C

46. The two tiers of ERP systems are: A. The internal tier and external tier. B. The vendor & customer tier and the employee tier. C. The large, multinational corporation tier and the midsize business tier. D. The acquisitions tier and the sales tier.

C

49. The first "pure Internet" architecture, with no programming code residing on the client computer was: A. SAP R/3. B. Oracle Applications. C. Peoplesoft. D. mySAP.

C

56. Business process reengineering means: A. Configuring the business processes to conform to the functionality of the IT system. B. Configuring the IT system to the business process for best processing speed. C. Matching the IT and business processes to achieve the greatest mutual benefit from each. D. Configuring both IT and business processes to meet the goals of ERP.

C

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

C

60. Data conversion will: 1. Require an appropriate amount of time be devoted to the conversion. 2. Be done at a minimal cost. 3. Import data from many legacy systems into a single RDBMS. 4. Require cleansing of errors and configuration inconsistencies. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

C

62. All of the following are implementation of software systems EXCEPT: A. The big bang implementation. B. Location-wise implementation. C. Progressive implementation. D. Modular implementation.

C

65. When one site is utilized as the pilot approach to ERP, the implementation method is referred to as: A. Big bang implementation B. Hardware implementation C. Location-wise implementation D. Modular implementation

C

8. Which of the following is NOT one of the reasons for increased spending on ERP systems in recent years? A. The need for Sarbanes-Oxley compliance B. Globalization and increased competitive pressures C. The need for earnings management D. The need for customer service enhancements

C

Manufacturing companies implement ERP systems for the primary purpose of A. Increasing productivity B. Reducing inventory quantities C. Sharing information D. Reducing investments

C

16. The _________ contains the data necessary to conduct day-to-day operations and produce management reports used to oversee day-to-day operations. A. Data warehouse B. Data center C. Operational database D. Enterprise resource planning system

D

18. An enterprise resource planning (ERP) system would: A. Update both accounts receivable and inventory when purchased goods are received from a vendor. B. Update both accounts payable and accounts receivable when inventory purchased from a vendor is received. C. Update both accounts payable and sales when purchased goods are received from a vendor. D. Update both accounts payable and inventory when purchased goods are received from a vendor.

D

23. Data within an ERP system may be stored in a(n): A. Operational database B. Relational database C. Data warehouse D. Both A & C

D

39. The human capital management module of an ERP such as SAP would include all of the following components except: A. Talent management B. Workforce process management C. Workforce development D. Workforce termination management

D

45. All of the following are types of integration strategies utilized by an ERP system except: A. People Integration B. Process Integration C. Information Integration D. Supply Chain Integration

D

47. Which of the following companies would be most likely to use a Tier Two ERP software? A. AT&T B. Walmart C. Rite Aid, a national Pharmacy Store Chain D. None of the Above

D

50. Select the true statement from the following: A. The strength of SAP is its human resources capabilities. B. The strength of Peoplesoft is its manufacturing capabilities. C. The strength of SAP is its financial reporting capabilities. D. The strength of Peoplesoft is its human resources capabilities.

D

54. Business process reengineering (BPR): 1. Aligns business processes with IT systems to record processes. 2. Reengineer the underlying processes to be more effective. 3. Improves the efficiency of the underlying process through automation. 4. Requires significant investment in IT resources. 5. Does not have a mutual enhancement effect with IT. A. 1, 2, 3, 4, and 5. B. 1, 3, 4, and 5 only. C. 1, 2, 3, and 5 only. D. 1, 3, and 4 only

D

58. Customizing an ERP system: 1. Will tailor the ERP system to the user. 2. May have a prohibitive cost. 3. May hinder future system upgrades. 4. Is recommended wherever possible. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

D

73. All of the following are operation risks of ERP systems except: A. Availability B. Online Privacy C. Confidentiality D. Duplicate Information

D

9. Supply chain management (SCM) is a critical business activity that connects a company more closely with its: A. Customers B. Suppliers C. Subsidiaries D. Customers and suppliers

D

An ERP system is a software system that provides each of the following EXCEPT: A. Collection, processing, storage, and reporting of transactional data. B. Enhancement of e-commerce and e-business. C. Coordination of multiple business processes. D. Physical controls for the prevention of inventory theft.

D