AIS Chapter 15

43. 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

45. 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

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

B

53X. 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

55X. 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

58X. 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

19. 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

29X. 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. 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

96A. The differences between Tier One and Tier Two software are becoming more definitive as the Tier One vendors attempt to attract larger companies.

F

96D. One of the greatest risks of ERP cloud systems is their vulnerability to hackers.

F

96B. All ERP vendors have developed cloud-based ERP products.

T

17X. MRP applications are: A. Management resource programs software B. Manufacturing resources planning software C. Management reporting programs software D. Manufacturing reporting programs software

B

18X. ERP modules include all EXCEPT: A. Financial. B. Operational database. C. Sales and services. D. Product development and manufacturing.

B

96C. One of the greatest risks of ERP cloud systems is the potential service outage that might cause the system to be unavailable.

T

20X. 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

1. 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

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

22X. 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

25. 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

26A. 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.

A

26X. 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

27X. 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

35. Critical factors of CRM success include: A. Successful software implementation and effective employee utilization. B. Effective use of the analytics module's data. C. The effective use by employees of the sales and services module's data. D. All of the above, A, B, and C, are correct.

A

39X. ERP tier two software applications include: A. Axapta, Epicor, MAS 500 ERP, Microsoft Dynamics ERP, and Macola ERP. B. Axapta, Epicor, MAS 500 ERP, JD Edwards, and Macola ERP. C. Axapta, Epicor, MAS 500 ERP, Microsoft Access, and Macola ERP. D. Axapta, Epicor, SAP R/1, Microsoft Dynamics ERP, and Macola ERP.

A

54X. 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

56X. 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

57X. Factors which adversely affect the implementation of an ERP system do NOT include: A. Cost. B. Complexity. C. Size. D. Scope.

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

21. 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

23X. 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

28X. 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

32. 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

37. 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

3X. 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

42. Best of breed means: A. Picking the best ERP software on the market for the particular type of business or organization. B. Picking the best software on the market for a particular type of business process for this size of an organization. C. Picking the best consulting firm to accomplish implementation of the ERP software. D. Utilizing the most capable employees within the organization work with the implementation of the ERP application.

B

50X. 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

59X. 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

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

60X. As required by Sarbanes-Oxley, enhanced ERP systems provide feedback to management 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

61. 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

38. 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

24. 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

31. 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

40A. One of the largest risks of ERP systems in the cloud is: A. The potential service outage that might cause the system to be unavailable. B. The risk of hacking into the system by competitors. C. The intense cost of training employees to work in the cloud environment. D. The high cost of the investment in hardware to handle the systems in the cloud.

C

46. 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

49X. 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

51X. 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

52X. 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

44. 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

48. 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

102. Customizing an ERP system is recommended wherever the business has an existing process to accomplish a goal and that process is not compatible with the ERP system.

F

110X. Modular implementation and pilot implementation are both considered methods of implementation.

F

113. The real-time nature of processing increases the total processing time and precludes immediate feedback to management.

F

122. Due to their level of integration, ERP systems have difficulties in properly segregating duties.

F

65. An enterprise resource planning (ERP) system would update accounts receivable and inventory when purchased goods are received from a vendor.

F

68X. ERP applications use modules such as financials, human resources, data warehouse, and analytics.

F

73. The purpose of MRP II was to integrate manufacturing, engineering, marketing, finance, and human resources units to run on the same information system.

F

74. SAP R/3 had tremendous growth due to the use of closed architecture and client-server hardware compatibility.

F

78. Spending for ERP and ERP II systems has been consistently growing since the mid 1990s and the Y2K events.

F

81. ERP systems such as SAP normally batch their financial transactions for processing due to the large amounts of data.

F

86. Sales and service is a term for software solutions that help businesses manage customer relationships in an organized way.

F

93. Peoplesoft uses the terms "back office" in reference to managerial functions and "front office" in reference to customer and sales functions.

F

94X. SAP was the first "pure Internet" architecture, with no programming code residing on the client computer.

F

100. Business process reengineering (BPR) is the purposeful and organized changing of business processes to make them more efficient.

T

103. Customizing an ERP system should be limited due to cost and upgrading to the system in the future.

T

111X. Location-wise implementation and pilot implementation are both considered methods of implementation.

T

112. The real-time nature of processing decreases the total processing time and allows more immediate feedback to management.

T

114. ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers.

T

118. Since the sale of goods in an ERP system may automatically trigger more production, which in turn would trigger the purchase of raw materials there is a significant need to ensure that these integrated processes are triggered at the correct time and in the correct amounts.

T

121A. The assigning of access and authority for a specific user ID is referred to as a user profile.

T

62. The intent of an ERP (enterprise resource planning) system is to provide a single software application for revenue, expenditures, conversion, and administrative processes.

T

64. An enterprise resource planning (ERP) system integrates all business processes and functions into a single software system using a single database.

T

72. Early MRP applications utilized sales forecasts to compute material requirements for production.

T

76X. ERP II has additional modules including customer relationship management and supply chain management for enhanced e-commerce transactions.

T

84. Supply Chain Management integrates supply and demand management within and across companies.

T