Chapter 11

44. ___________ are based on performance standards. (a) Exception reports. (b) Drill-down reports. (c) Routine reports. (d) Ad-hoc reports. (e) Comparative reports.

(a) Exception reports.

41. Data flow diagrams are used to show how __________ flow through a system. (a) People. (b) Paper. (c) Data. (d) B and C.

(c) Data.

42. ___________ are produced at scheduled intervals. (a) Exception reports. (b) Drill-down reports. (c) Routine reports. (d) Ad-hoc reports. (e) Comparative reports.

(c) Routine reports.

46. You would expect ___________________ in a dashboard. (a) Exception reports. (b) Drill-down reports. (c) Routine reports. (d) Ad-hoc reports. (e) Comparative reports.

(c) Routine reports.

45. ___________ are produced on demand with specific data requirements. (a) Exception reports. (b) Drill-down reports. (c) Routine reports. (d) Ad-hoc reports. (e) Comparative reports.

(d) Ad-hoc reports.

43. ___________ show different sets of data side by side. (a) Exception reports. (b) Drill-down reports. (c) Routine reports. (d) Ad-hoc reports. (e) Comparative reports.

(e) Comparative reports.

35. Routine reports are produced at scheduled intervals and have set data requirements. _____ reports are used when requirements are not routine. a) Ad hoc b) Summary c) Drill-down d) Key-indicator e) Exception

a) Ad hoc

6. Routine reports a) Are produced at scheduled intervals. b) Include only information that falls outside certain threshold standards. c) Are prepared when managers ask for specific information. d) All of these.

a) Are produced at scheduled intervals.

31. Which of the following was not included in early ERP systems? a) Sales and Marketing b) Inventory Control c) Order Entry d) Distribution e) Raw materials management

a) Sales and Marketing

17. Which of the following is false? a) TPS need large computers to process the transactions. b) Business transactions can be processed when they occur. c) Business transactions can be processed after they occur. d) Data for transactions can be collected by sensors. e) A transaction is a business event.

a) TPS need large computers to process the transactions.

40. To effectively manage by exception (i.e., use exception reports), the company must first create: a) performance standards b) best practices c) user information requirements d) a database e) employee evaluation guides

a) performance standards

13. Crediting interest to your savings account at your bank once a month, it is called a: a) process b) function c) calculation d) transaction e) decision

a) process

15. Which of the following is not a characteristic of a transaction processing system? a) small amounts of data are processed b) sources of data are mainly internal c) low computation complexity d) high level of accuracy, data integrity, and security e) high level of detail

a) small amounts of data are processed

33. Which of the following is false? a) Breaking down functional silos makes an organization more adaptive. b) An organization doesn't have to use the business processes coded into the ERP. c) ERP systems change an organization's business processes. d) ERP systems are time consuming to implement. e) ERP systems require functional areas to work together.

b) An organization doesn't have to use the business processes coded into the ERP.

29. _____ are the most successful solutions or problem-solving methods for achieving a business objective. a) Business functions b) Best practices c) Optimal strategies d) Business processes e) Enterprise solutions

b) Best practices

5. Production/operations and logistics functional area information systems support all of the following activities except a) Determining how much inventory to order. b) Calculating the availability and cost of money. c) Controlling for defects in goods produced. d) Computer-assisted manufacturing

b) Calculating the availability and cost of money.

22. Which of the following is false? a) ERP systems are an evolution of functional information systems. b) ERP systems look the same to users as functional information systems. c) ERP systems have much the same functionality as functional information systems. d) ERP systems produce the same reports as functional information systems. e) ERP systems use the same data as functional information systems.

b) ERP systems look the same to users as functional information systems.

20. Which of the following is not a process within an information system for Human Resource Management? a) Benefits administration b) Firing decisions c) Peer evaluations d) Recruitment e) Training

b) Firing decisions

25. Which of the following is false? a) Functional area information systems were usually developed independently. b) Functional area information systems easily communicate with each other. c) ERP systems are designed to integrate business processes. d) ERP systems use a common database. e) ERP systems integrate functional areas within an organization.

b) Functional area information systems easily communicate with each other.

8. Which of the following is false? a) Corporate data is supplied by transaction processing systems. b) Information systems are only used by large organizations. c) Reports from information systems are used in all levels of the organization. d) Data from TPS systems feeds ERP systems. e) Information systems within an organization support internal and external processes.

b) Information systems are only used by large organizations.

36. _____ reports are produced at scheduled intervals. a) Ad hoc b) Routine c) Exception d) Detailed e) Key indicator

b) Routine

2. Transaction processing systems (TPS) a) Are rarely used in large organizations because these organizations have too many different types of transactions to be processed by a single system. b) Track data on activities such as products manufactured, services sold, people hired, and payroll checks generated. c) Usually rely on clerks to enter the transaction data into the system based on paper documents. d) None of these are correct.

b) Track data on activities such as products manufactured, services sold, people hired, and payroll checks generated.

9. Organizational transactions are typically _____ volume, _____, and therefore _____ to computerize. a) low, repetitive, difficult b) high, repetitive, easy c) high, different, difficult d) low, different, easy e) high, different, easy

b) high, repetitive, easy

34. Which of the following has not been identified as a reason for ERP implementation failure? a) Failure to include affected employees in planning b) The complexity of the planning c) Lack of documentation d) Insufficient training e) No change management processes

c Lack of documentation

4. Accounting and finance functional area information systems support all of the following activities except a) Managing organizational investments in stocks, bonds, and other investment vehicles. b) Calculating the availability and cost of money. c) Analyzing customer profiles and preferences. d) Monitoring expenditures and comparing them against the budget.

c) Analyzing customer profiles and preferences.

52. _____ reports show a greater level of detail than is included in routine reports. a) Ad hoc b) Routine c) Drill-down d) Key-indicator e) Exception

c) Drill-down

38. When the chief financial officer of a company wants a report on business units who have spent 10 percent more than their allotted budget, she would be requesting which type of report? a) Ad hoc b) Routine c) Exception d) Detailed e) Key indicator

c) Exception

39. _____ reports include only information that falls outside certain threshold standards. a) Ad hoc b) Routine c) Exception d) Detailed e) Key indicator

c) Exception

19. Which of the following is not a process within an information system for Accounting and Finance? a) Budgeting b) Managing Currencies c) Inventory management d) Auditing e) Expense management

c) Inventory management

10. Business transactions that are processed as they occur is an example of a) batch processing b) source data automation c) OLTP d) TPS e) ESS.

c) OLTP

21. Which of the following is false? a) Inventory management determines how much inventory to order. b) Large companies allow their vendors to manage their inventory. c) The POM function within an organization monitors sales. d) Quality control used by manufacturing units uses metrics. e) Computer systems are used to integrate all aspects of product design.

c) The POM function within an organization monitors sales.

50. A _____ is a set of related steps or procedures designed to produce a specific outcome. a) business function b) business goal c) business process d) business strategy e) business operation

c) business process

47. A _____ is any business event that generates data worthy of being captured and stored in the organization's database. a) function b) process c) transaction d) decision e) calculation

c) transaction

14. Data that have been processed by the organization's _____ are inputs into the organization's database. a) office automation systems b) functional area information systems c) transaction processing systems d) decision support systems e) digital dashboards

c) transaction processing systems

51. The benefits of enterprise resource planning systems include a) Increasing an organization's ability to react quickly to changing business condition. b) Providing decision support on performance across functional areas. c) Integrating the organization's functions into cross-functional processes. d) All of these are benefits.

d) All of these are benefits.

24. _____ integrate the planning, management, and use of all of an organization's resources, and are designed to tightly integrate the functional areas of the organization. a) Transaction processing systems b) Supply chain management systems c) Functional area information systems d) Enterprise resource planning systems e) Corporate extranets

d) Enterprise resource planning systems

3. Functional area information systems include which of the following advantages? a) They provide real-time, wireless connections between areas such as accounting and marketing. b) They are more useful to an organization than enterprise systems because they focus exclusively on a specific area, e.g., accounting, production, finance, or human resources. c) They provide cross-functional reports that are useful to upper-level management. d) None of these are correct.

d) None of these are correct.

16. Which of the following is not an example of a transaction? a) A person hired b) A payroll check generated c) A service sold d) Printing a report e) Checking out at Walmart

d) Printing a report

7. Which of the following is true? a) Transactions are only critical to the area they occur in. b) Transactions can only involve one database. c) Transactions can only involve one computer. d) The actual processing of a transaction has to be standard. e) Transactions generate a small volume of data.

d) The actual processing of a transaction has to be standard.

23. Enterprise resource planning systems take a(n) _____ view of the overall organization. a) user's b) management c) functional d) business process e) transactional

d) business process

1. It is important to have a working knowledge of information systems within organizations because a) Employees regularly assess data from their firm's information systems. b) Employees use information from reports generated by the information system to perform their jobs efficiently. c) Employees have an impact on the format and content of reports generated by information systems. d) All of these.

d) d) All of these.

18. Which of the following is not a function of functional area information systems? a) providing information to managers in the functional areas b) supporting the managerial tasks of planning, organizing, and controlling operations c) providing information mainly in the form of reports d) providing data from business events to the corporate database e) providing analysis capabilities to middle level managers and staff

d) providing data from business events to the corporate database

48. Which of the following is not a function of functional area information systems? a) providing information to managers in the functional areas b) supporting the managerial tasks of planning, organizing, and controlling operations c) providing information mainly in the form of reports d) providing data from business events to the corporate database e) providing analysis capabilities to middle level managers and staff

d) providing data from business events to the corporate database

12. When interest is credited to your savings account at your bank, it is called a: a) process b) function c) calculation d) transaction e) decision

d) transaction

11. The most fundamental information systems in an organization are: a) office automation systems b) decision support systems c) functional area information systems d) transaction processing systems e) business intelligence systems

d) transaction processing systems

26. The characteristics of ERP systems include all of the following except: a) integrating the planning, management, and use of all resources of the organization b) providing information necessary to control the business processes of the organization c) including a set of interdependent software modules d) typically fitting an organization's existing business processes e) they are expensive and time-consuming

d) typically fitting an organization's existing business processes

28. _____ are interorganizational ERP systems that provide Web-enabled links between an organization's key business systems and its customers, suppliers, business partners, and others. a) Functional area information systems b) Supply chain management systems c) Transaction processing systems d) Office automation systems e) ERP II systems

e) ERP II systems

37. _____ reports summarize the performance of critical activities. a) Ad hoc b) Routine c) Exception d) Detailed e) Key indicator

e) Key indicator

32. Which of the following is false about ERP II systems? a) They utilize the Web. b) They include human resources processes. c) Functionality is delivered as e-business suites. d) They support internal- facing applications as well as external-facing applications. e) These ERP systems have no optional modules.

e) These ERP systems have no optional modules.

30. The drawbacks of ERP systems include all of the following except: a) They are complex b) They are expensive c) They are time-consuming to implement d) Companies may need to change existing business processes to fit the software e) They consist of modules

e) They consist of modules

49. The characteristics of ERP systems include which of the following? a) integrate the planning, management, and use of all resources of the organization b) provide information necessary to control the business processes of the organization c) include a set of interdependent software modules d) may force companies to change existing business processes to fit predetermined business processes of the ERP package e) all of the these

e) all of the these

27. Enterprise resource planning systems are very _____ software products, meaning that companies typically have to change their _____ to accommodate how the software functions. a) unstructured, business processes b) structured, reporting relationships c) structured, accounting processes d) unstructured, inventory control e) structured, business processes

e) structured, business processes