Chapter 2

Introduction to SAP ERP

True-False Questions

1. The architecture of an enterprise system refers to the technical structure of the software, how
users interact with the software, and how the software is physically managed on computer
hardware.

Answer: True Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

2. The three layers of the “three-tier client-server architecture” are the presentation layer,
windows layer, and data layer.

Answer: False Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

3. When you access the Internet, your browser is the presentation layer.

Answer: True Difficulty: Medium Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

4. Scalability is the ability of the hardware and software to support a greater number of users
easily over time.

Answer: True Difficulty: Easy Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

5. Service-oriented architecture (SOA) is the fundamental concept behind systems connecting

through standardized interfaces called Web services.

Answer: True Difficulty: Difficult Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

6. Enterprise resource planning (ERP) focuses on the internal operations of an organization.

Answer:True Difficulty: Medium Page Reference: 3

Section: Enterprise Planning Systems Practice:

7. Inter-company processes take place within a single company.

Answer:False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems Practice:

8. Customer relationship management (CRM) systems connect a company’s ERP system to its
accounting software system.
 Answer: False Difficulty: Medium Page Reference: 4
Section: Enterprise Planning Systems Practice:

9. Supply chain management (SCM) systems help companies execute the processes of research,
design, and product management.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems Practice:

10. Application platforms serve as a type of "enterprise operating system" for a company’s ES
landscape by allowing all of the various systems to communicate seamlessly with one
another as well as with systems outside the company.

Answer: True Difficulty: Medium Page Reference: 5

Section: Application Platforms Practice:

11. Current versions of the SAP business suite can’t run on SAP NetWeaver.

Answer: False Difficulty: Easy Page Reference: 6

Section: Application Platforms Practice:

12. SAP NetWeaver is the “operating system” for an entire company’s business processes.

Answer: True Difficulty: Medium Page Reference: 6

Section: Application Platforms Practice:

13. Organizational data are used to represent the structure of an enterprise.

Answer: True Difficulty: Easy Page Reference: 6

Section: Data in an Enterprise System – Organizational Data Practice:

14. A company code is the highest organizational level in SAP ERP.

Answer: False Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

15. A client represents each company within an enterprise.

Answer: False Difficulty: Easy Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

16. Material master are organizational elements that performs multiple functions and is relevant
to several processes.

Answer: False Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

17. A building can house only a single plant.

Answer: False Difficulty: Difficult Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:
18. A plant can be a factory, a warehouse, a regional distribution center, or a service center.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:

19. The material master is the most commonly used organizational data in an enterprise.

Answer: False Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:

20. The material master includes a large amount of data because it is used in numerous
processes.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:

21. Materials are categorized into different material types based on the way they are used in the
firm’s operations.

Answer: True Difficulty: Medium Page Reference: 9

Section: Material Types Practice:

22. The four most common material types are raw materials, semi‐finished goods, finished
goods, and exported goods.

Answer: False Difficulty: Difficult Page Reference: 9

Section: Material Types Practice:

23. Raw materials (ROH) are purchased from an external source ‐ a vendor‐ and used in the
production process.

Answer: True Difficulty: Easy Page Reference: 10

Section: Material Types Practice:

24. Trading goods (HAWA) are resold to customers after they have been modified by the
company.

Answer: False Difficulty: Medium Page Reference: 10

Section: Material Types Practice:

25. Transaction data reflect the consequences of executing process steps.

Answer: True Difficulty: Medium Page Reference: 12

Section: Enterprise Systems – Transaction Data Practice:

26. The financial accounting documents, management accounting or controlling documents, and
material documents are all “virtual.”

Answer: True Difficulty: Medium Page Reference: 13

Section: Enterprise Systems – Transaction Data Practice:
27. Reporting is a general term for the methods a user can utilize to update data in the ERP
system to execute process steps.

Answer: False Difficulty: Medium Page Reference: 14

Section: Reporting Practice:

28. The online transaction processing (OLTP) system is designed to capture and store detailed
organizational data.

Answer: False Difficulty: Medium Page Reference: 15

Section: Reporting Practice:

29. Work lists identify tasks that are scheduled to be completed in a process.

Answer: True Difficulty: Medium Page Reference: 16

Section: Reporting – Work Lists Practice:

30. Information structures display lists of master data, such as materials, vendors, and purchasing
info records, and documents, such as transaction documents, FI, CO, and material documents
that are generated during the execution of a process.

Answer: False Difficulty: Medium Page Reference: 17

Section: Reporting – Online Lists Practice: