Professional Documents
Culture Documents
ERP Test Bank
ERP Test Bank
ANS: T
2. Historically, businesses have had organizational structures that separated the functional areas, but
business schools have not been organized like that.
ANS: F
3. Information systems that are designed so functional areas share data are called integrated information
systems.
ANS: T
ANS: F
ANS: F
ANS: F
7. The business function of government compliance falls under the Supply Chain Management functional
area of operation.
ANS: F
8. The business process of Cash Flow Management is handled under the Accounting and Finance functional
area of operation.
ANS: T
ANS: T
10. To avoid stockouts, manufacturers might carry extra raw materials. This excess is known as safety stock.
ANS: T
1. The complex hardware and software that goes into an ERP system was not available until the 1970s.
ANS: F
2. The capabilities of computer hardware doubling every 18 months is known as Gates’ Law.
1|Page
ANS: F
3. Scalability refers to a piece of equipment’s capacity being exceeded and that capacity being expanded by
adding new hardware.
ANS: T
4. The software that holds data in an organized fashion is known as a database management system, or a
DBMS.
ANS: T
5. Materials requirements planning (MRP) software allows a plant manager to plan production and raw
materials requirements by guess-timation.
ANS: F
ANS: T
7. The functional model of business and management was useful for decades and is still the current school
of thought.
ANS: F
8. SAP’s first software project involved developing a materials and logistics management system for ICI.
ANS: T
9. SAP expanded into international markets but kept the software in a single language, German, and a single
currency, the Euro.
ANS: F
ANS: F
ANS: T
12. Open architecture is defined as allowing third-party software vendors to write software to integrate with
the main package, such as SAP’s R/3.
ANS: T
2|Page
13. The Oracle corporation began selling ERP software; they recently acquired a firm known for its database
management systems.
ANS: F
14. Defining the dollar limits on transactions in the SAP R/3 system is known as limiting the tolerance
groups.
ANS: T
15. R/3’s design incorporates best practices, which means the designers have chosen the best, most efficient
way in which a business process should be handled.
ANS: T
16. One benefit of ERP systems is the elimination of updating and repairing many separate computer
systems.
ANS: T
17. A large company might spent $1 million on ERP implementation, which includes software and training.
ANS: F
ANS: T
ANS: F
20. The return on investment (ROI) is an assessment of an investment’s project’s value that is calculated by
dividing the value of the project’s benefits by the value of the project’s cost.
ANS: T
22. Individual information systems for each functional area in a company are known as silos.
ANS: T
ANS: T
ANS: F
25. The most current version of SAP’s software is known as SAP ERP.
3|Page
ANS: T
1. In SAP R/3, relatively permanent data about customers is kept in the Customer Master Data table.
ANS: T
2. In SAP R/3, relatively permanent data about inventory is kept in the Material Master Data table.
ANS: T
3. In SAP R/3, relatively permanent data in the Material Master Data table is available to only one module,
the Materials Management module.
ANS: F
4. In SAP R/3, relatively permanent data about customers in the Customer Master Data table is available to
only the Sales and Distribution module.
ANS: F
5. SAP R/3’s system allows one to group customers, which is commonly known as an "organizational
structure".
ANS: T
6. In SAP R/3, the linked set of document numbers is called the "document flow".
ANS: T
ANS: T
8. The first step in the SAP ERP sales and distribution process is the Sales Order Processing step.
ANS: F
ANS: F
ANS: T
11. CRM software stands for Custom Resource Management. This is a specialized type of ERP.
ANS: F
12. Global ATP allows for searching of a particular product at multiple plants worldwide.
4|Page
ANS: T
13. Returned products to a company are processed more efficiently if the customer first calls for a RMA.
ANS: T
14. An inquiry in the SAP ERP system occurs in the Delivery step of the Sales and Distribution cycle.
ANS: F
15. In the SAP ERP system, delivery means releasing the documents that the warehouse uses to pick, pack,
and ship orders, rather than the traditional definition of transferring goods.
ANS: T
16. The PO Number is a number assigned by Fitter Snacker to track orders in the SAP ERP system.
ANS: F
17. With on-demand CRM, the software and computer equipment reside with the CRM provider; it is not
installed in-house.
ANS: T
1. Good production decisions can be made knowing only the current level of finished goods inventory.
ANS: F
2. Production planners aggregate products into product groups to make forecasts and plans more accurate.
ANS: F
3. The Sales and Operations Planning process is used to combine the sales forecast with capacity
information to determine a production plan for finished goods.
ANS: T
4. Demand Management in the SAP R/3 system is the process where sales forecasts are adjusted to
incorporate the impact of marketing initiatives.
ANS: F
ANS: F
6. Supply Chain Management is as much an approach to doing business with suppliers as it is a technology.
ANS: T
5|Page
7. In a traditional supply chain, demand information is transmitted rapidly to all members of the supply
chain.
ANS: F
ANS: F
9. The percentage of the order that the supplier provides in the first shipment is known as the first-rate.
ANS: F
ANS: T
11. The cost it normally takes to manufacture a product, which is usually derived from historical data and any
changes that have occurred since then, is known as a structured cost.
ANS: F
ANS: T
13. The production plan for all finished goods is known as the MPS, or the master production schedule.
ANS: T
14. Another term for the recipe of a product is the bill of materials.
ANS: T
15. Lead times and lot sizing help a company determine the transfer of goods to the customer.
ANS: F
16. Because Fitter Snacker uses large quantities of oats, the most cost-effective way to purchase oats is to buy
a farm and grown them.
ANS: F
17. Because Fitter Snacker uses large quantities of oats, the most cost-effective way to puchase oats is in bulk
hopper-truck quantities, which means that the material must be ordered in 44,000 pound quantities.
ANS: T
18. The percentage of the order that the supplier provided in the first shipment is known as the initial order
lead time.
6|Page
ANS: F
19. The initial fill rate measures the time needed for the supplier to fill the order.
ANS: F
ANS: T
ANS: F
3. When a company has an ERP system the general ledger is maintained by the ERP system.
ANS: T
4. The SAP ERP system has a module called Accounting and Finance.
ANS: F
5. In SAP ERP access to general ledger accounts is spread over many modules.
ANS: T
6. In a manufactured item, the cost of heating the plant would be considered part of the item's raw materials.
ANS: F
7. In a manufactured item, the cost of heating the plant would be considered part of the item's overhead.
ANS: T
8. Using standard costs to accumulate manufacturing costs means that the company does not have to keep
track of actual manufacturing costs.
ANS: F
9. Activity based costing is a way of treating overhead costs more like direct costs.
ANS: T
10. Activity based costing means keeping track of instances of activities as well as their costs.
ANS: T
11. Having ERP will let a company use more cost allocation bases.
ANS: T
7|Page
12. Having ERP will require a company to restrict the number of cost allocation bases.
ANS: F
13. In an ERP system, data does not flow from one module to another.
ANS: T
14. In SAP ERP an event's "document flow" can be accessed from any SAP ERP screen.
ANS: T
15. SAP ERP's management reporting tools use data in data warehouses.
ANS: T
16. The capability of viewing summary information and then being able to look at details behind the
summary is known as data mining.
ANS: F
17. The US Congress passed the Sarbanes-Oxley Act of 2002 in response to the fraud and abuse in the Enron
collapse.
ANS: T
ANS: F
ANS: F
20. User authorizations help prevent fraud and abuse by employees paying fictitious vendors.
ANS: T
21. Tolerance groups allow for limiting the authority of employees over certain amounts of transactions.
ANS: T
26. Another name for an income statement is a profit and loss statement.
ANS: T
27. In an ERP system, the balance sheet and P&L statements are database reports.
ANS: T
8|Page
28. Managerial accounting deals with determining the costs and profitability of the company’s activities.
ANS: T
29. In the SAP ERP system, inputs to the general ledger occur simultaneously with input of business
transactions to the various modules.
ANS: T
32. The key feature of any ERP system is the ability to drill down from a report to the source documents
(transactions) that created it.
ANS: T
1. The tasks associated with managing a company's workforce is now known as human capital management
or HCM.
ANS: T
2. The responsibilities of an HR department include manufacturing of goods and purchasing raw materials.
ANS: F
ANS: T
4. Sabermetrics is the statistical technique that universities use to accept students into their college
programs.
ANS: F
ANS: F
ANS: T
ANS: F
ANS: T
9|Page
4. An assessment of disparities between an organization's current situation and its long-term goals is known
as a swimlane assessment.
ANS: F
ANS: T
6. ERP software such as SAP has many business applications but none of them support business processes.
ANS: F
7. In flowchart analysis, each activity in the process is analyzed for the value it adds to the product or
service.
ANS: F
8. Dynamic process modeling takes a basic process flowchart and puts it into motion using computer
simulation.
ANS: T
9. Software programs that automate the execution of business processes and address all aspects of the
process are called ERP Wizards.
ANS: F
ANS: F
ANS: F
2. Internet based procurement includes trade exchanges among companies competing for the same market.
ANS: T
3. Dynamic pricing is enabling more middlemen to get jobs facilitating buying and selling of goods on the
Internet.
ANS: F
4. To be connected any time from any place to the back-office system can provide a competitive advantage.
ANS: T
5. A company that provides the management of applications for a company over a network is called a BOP,
a back-office provider.
10 | P a g e
ANS: F
ANS: T
7. A portal is a customized Web site that serves as a home base for individual workers.
ANS: T
8. Web services are shops on the Internet where consumers can buy a variety of items.
ANS: F
9. XML is similar to HTML in that it only describes the display of the information on a web page.
ANS: F
ANS: T
11. The best way for a university to run a large ERP package like SAP for education purposes only (i.e.
teaching in the classroom and labs) would be to run an ASP.
ANS: T
MULTIPLE CHOICE
3. What are the computers, people, procedures, and software that store, organize, and deliver information in
an organization?
a. The CPU c. Information systems
b. The Process System d. Personnel systems
ANS: C
4. Today’s managers are beginning to think in terms of business process. A business process cuts across
which functional areas of operation?
11 | P a g e
a. Marketing and Sales d. Human Resources
b. Supply Chain Management e. All of the above
c. Accounting and Finance
ANS: E
5. Information systems that can be designed so that functional areas of operation share data are called:
a. Integrated information systems c. Non-middleware information systems
b. Complete information systems d. Linked information systems
ANS: A
6. Analyses that attempt to predict the future sales of a product are called:
a. Sales forecasts c. Sales diving
b. Sales divining d. Sales deriving
ANS: A
7. Which of the following is an input to the Marketing and Sales functional area?
a. Production plans c. Per-unit cost
b. Raw material orders d. Accounts payable data
ANS: C
8. Which of the following outputs would emerge from the Accounting and Finance functional area?
a. Packaging orders c. Regulation compliance
b. Sales strategy d. Financial reports
ANS: D
9. When purchasing a computer, the functional area responsible for handling the financial help for
purchasing that computer is
a. Marketing and Sales c. Supply Chain Management
b. Accounting and Finance d. Human Resources
ANS: B
10. When purchasing a computer, the functional area responsible for technical support is
a. Marketing and Sales c. Supply Chain Management
b. Accounting and Finance d. Human Resources
ANS: A
11. When manufacturing runs out of raw material, it’s known as a(n)
a. Shortfall c. Depletion
b. Empty shelf d. Stockout
ANS: D
12 | P a g e
13. Which of the following is an input to HR?
a. Personnel forecasts c. Layoff and recall company policy
b. Sales data d. Travel expense company policy
ANS: A
1. The complex software and hardware required for ERP systems was not available until the
a. 1960s c. 1980s
b. 1970s d. 1990s
ANS: D
2. The observation that the number of transistors built onto a computer chip doubles every 18 months is
known as:
a. Moore’s Law c. Doubleting
b. Gate’s Prophesy d. Acceleration
ANS: A
3. When a piece of equipment’s capacity is exceeded, its capacity can be increased by adding new hardware.
This is commonly known as:
a. Adaptability c. Scalability
b. Middleware d. Computability
ANS: C
4. In the 1980s, ____, the technology that holds data in an organized fashion, existed for ERP development.
a. Spreadsheets c. Client/Server
b. DBMS d. Word-processors
ANS: B
5. ____ software allows a plant manager to plan production and raw materials requirements by working
backward from the sales forecast.
a. DBMS c. MRP
b. EDI d. EFT
ANS: C
7. Software ____ are individual programs that can be purchased, installed, and run separately, but extract
data from the common database.
a. Nodes c. Modules
b. Chunks d. Tidbits
ANS: C
13 | P a g e
8. When third party software companies are able to write software to integrate with an ERP system, it is said
to have:
a. Open architecture c. Integrated pieces
b. Clip-ons d. Piecemeal nodes
ANS: A
13. After a company chooses the modules they want to implement, they must decide on about ____ options,
which allow the customer to customize the modules to fit their business to some extent.
a. Settings c. Optional
b. Configuration d. Tandem
ANS: B
15. An ERP system for a large company will cost ____, including software, training, and implementation.
a. $50-500 million c. $1-5 billion
b. $1-5 million d. $50,000-$500,000
ANS: A
14 | P a g e
b. C++ d. ABAP
ANS: D
19. The statistical and logical analysis of large sets of transaction data is called:
a. Digging c. Data mining
b. Hunting d. Hacking
ANS: C
21. Tolerance groups can be set in the SAP system as shown below. A tolerance setting is an example of one
of the many _____________ settings in the SAP system.
ANS: C
22. Individual information systems for each functional area in a company are known as
a. Silos c. Tubers
b. Bagpipes d. Separated systems
ANS: A
23. Which ERP package is a popular software choice for managing human resources and financial activities
at universities?
a. SAP c. Microsoft Dynamics
b. PeopleSoft d. J.D. Edwards
ANS: B
24. Which of the following modules in SAP ERP maintains production information.
a. SD c. PP
b. MM d. QM
ANS: C
25. Which of the following module in SAP is a set of tools that can automate the activities in SAP ERP?
a. Workflow c. Financial Accounting
15 | P a g e
b. Controlling d. Project System
ANS: A
26. What are software that enables systems to exchange data without complicated software links?
a. ABAP modules c. Legacy systems
b. Web Services d. Best practices
ANS: B
2. A customer calls up to find out how much 1000 units of a product would cost. This is an example of:
____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing
ANS: A
3. A customer is granted a 10% price discount in a large order. This is an example of an activity in: ____ in
the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing
ANS: B
4. A customer's order is checked to see if it can be produced and delivered by the requested date. This is an
example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing
ANS: C
5. A customer's documents are released to the warehouse so that the goods can be gathered, packed and
boxed. This is an example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing
ANS: D
6. A customer's remittance causes Cash to be debited and Accounts Receivable to be credited. This is an
example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
16 | P a g e
c. Inventory Sourcing
ANS: E
7. In SAP ERP, the history of a transaction (such as a sales order) can be researched by looking at its ____.
a. Trail mix d. Material Master Data
b. Transaction index e. Sales Master Data
c. Document flow
ANS: C
8. What kind of software can give top management an overview of a company's complete relationship with a
customer?
a. One to One Marketing Software
b. Open Relationship Software
c. Denouement Software
d. Customer Relationship Management Software
e. Supply Chain Management Software
ANS: D
9. In the sales order process, there is a number used in the SAP ERP sales order that in a paper process
would be pre-printed on the sales document, usually in sequential number order. It’s assigned by the
customer to the sales order. What is this number?
a. Customer ID c. Material Number
b. Purchase Order Number d. Billing Code
ANS: B
10. Setting prices for customers can be very complex. SAP helps by offering a control mechanism, called
____, to determine how much to charge a given customer for a given product.
a. Pricing Variance c. Condition Technique
b. Price Fixing d. Fluctuation
ANS: C
11. The ____ system communicates with SAP ERP, BW, and APO systems in developing and executing its
plans.
a. PPO c. CRM
b. SSA d. GUp
ANS: C
12. This software can automatically route customers who contact the company to a sales representative.
Companies can use this software to forecast customer needs.
a. Marketing encyclopedias c. One-to-one marketing
b. Sales campaign management d. Sales force automation
ANS: D
13. The SAP ERP system allows users to define various ways to group customers and salespeople. These
groups are called ____.
a. Organizational structures c. Document flows
17 | P a g e
b. Master data d. Audit trails
ANS: A
14. In ____ CRM, the software and equipment reside with the CRM provider; it is not installed in-house.
a. Walk-up c. Internet
b. On-demand d. ERP
ANS: B
3. What is the sales forecast for June of this year that Fitter Snacker should use?
a. 6,628 c. 6,935
b. 7,128 d. 7,143
ANS: B
4. What is the maximum number of cases they can produce in the month if they schedule workers for
overtime on the weekdays only?
a. 7,666 c. 9,582
b. 9,199 d. 10,249
ANS: B
5. What is the maximum number of cases they can produce in the month if they schedule workers for
overtime on weekdays and Saturdays?
a. 7,666 c. 9,582
18 | P a g e
b. 9,199 d. 10,249
ANS: D
6. The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January. If there are 22 days
in the month, how many cases of snack bars should be produced in a 4-day week?
a. 188 c. 940
b. 752 d. 1034
ANS: B
8. What will the On Hand inventory be in Period 5 after the system calculated planned orders?
a. 0 c. 8,038
b. 440 d. 14,038
ANS: C
11. The order of the steps in the SAP R/3 production planning process are:
a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP
b. Sales Forecasting, Demand Planning, Demand Management, MRP
c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management
d. Sales Forecasting, Sales and Operations Planning, Demand Management, MRP
ANS: D
19 | P a g e
12. The production plan for Fitter Snacker calls for 7000 cases for the snack bar product group in June. If the
snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and
30% NRG-B bars, how many NRG-A bars should be produced in June?
a. 500 c. 4690
b. 2010 d. 7000
ANS: C
13. The costs it normally takes to manufacture a product, which is calculated from historical costs and any
changes from that, are known as:
a. Standard costs c. Known costs
b. Abbreviated costs d. Estimated costs
ANS: A
16. What process answers the question “What do we need to order to produce the product, and when do we
need to order these raw materials?”
a. SF - sales forecasting c. MRP - materials requirements planning
b. SOP - sales and operations planning d. DS - detailed scheduling
ANS: C
17. What metric tracks the number of times a supplier meets the agreed upon delivery date?
a. Initial fill rate c. On-time performance
b. Initial order lead time d. cash-to-cash cycle time
ANS: C
20 | P a g e
21. In the following figure, what is D?
22. What stage of the production planning process splits Fitter Snacker’s monthly production planning values
into finer time periods?
a. Sales Forecasting c. MRP
b. BOM d. Demand Management
ANS: D
1. Periodically, companies summarize the balances in the books of account. This process is called: ____.
a. Cost accounting d. Closing the books
b. Account closure e. Statement wrap-up
c. Periodic closure
ANS: D
2. Assume a company records its transactions in an ERP system. On the shop floor, a production run has just
been finished and the finished goods are transferred to the warehouse for storage. What would a likely
way be to tell the ERP system about this event?
a. The bar codes on the goods are scanned as they enter the warehouse. The data
generated is passed to the ERP database electronically.
b. A Production clerk summarizes the data in an Excel spreadsheet and sends the spreadsheet
to Accounting. An Accounting clerk enters the data from the spreadsheet into the ERP
program's Materials and Production modules.
c. The bar codes on the goods are scanned as they come off the production line. The data
generated is passed to the ERP system's Production module electronically. Then bar codes
on the goods are scanned as they enter the warehouse. The data generated is passed to the
ERP database electronically.
ANS: A
4. Which financial statement shows account balances such as, cash held, amounts owed to the company by
customers, the cost of raw materials and finished goods inventory?
a. Income statement c. Tolerance group
b. Balance sheet d. Year end report
ANS: B
21 | P a g e
6. ____ are often allocated based on total machine hours or total labor hours.
a. Direct costs c. Overhead costs
b. Plant costs d. Manmade costs
ANS: C
7. In ____, activities associated with overhead cost generation are identified and then records are kept on the
costs and on the activities.
a. ABC, activity-based costing c. ROTM, run of the mill costing
b. BOC, backoffice costing d. POC, plant operation costing
ANS: A
8. Each transaction in SAP ERP gets its own unique number. This is known as: ____.
a. Uniqueness numbering c. Auditing codes
b. Document flow d. Unique codes
ANS: B
12. In an ERP system, the balance sheet and P&L statements are: ____.
a. Generated yearly c. Reports
b. Not available d. Modules
ANS: C
14. Given that the cost of manufacturing NRG-A bars is $0.72 per bar, how much does FS need to charge to
make a profit of $0.25?
a. $1.00 c. $0.97
b. $0.99 d. $1.25
ANS: C
15. For Fitter Snacker, the sum of direct materials, production overhead, and direct labor is the ____.
a. COGM - cost of goods manufactured c. COGP - cost of goods produced
b. COGS - cost of goods sold d. COGS - cost of goods shipped
ANS: A
22 | P a g e
16. The following screen in SAP is an example of ____.
17. The two key pieces of information for a cost analysis is the direct material and the direct ____.
a. Labor c. Driver
b. Overhead d. Selling cost
ANS: A
18. If Fitter Snacker’s cost of making a case of bars is $209.82, and there are 24 bars to a box and 12 boxes to
a case, how much money does it cost Fitter Snacker to make each individual bar?
a. $17.49 c. $8.74
b. $1.00 d. $0.72
ANS: D
1. The tasks associated with managing a company's workforce is now known as ____.
a. Human capital management c. Workforce management
b. Resource management d. Hiring management
ANS: A
2. The job of managing salary benefits provided to each employee and confirming that the proper benefits
are disbursed to new and current employees falls under the ____ department.
a. Accounting and Finance c. Individual
b. Human Resources d. Administrative
ANS: B
4. The parts of an employee's pay that is comprised of base pay, bonuses, gratuities, overtime, sick pay , and
vacation allowances are known as ____.
a. Payroll run c. Voluntary deductions
b. Statutory deductions d. Remuneration elements
ANS: D
5. ____ are skills or abilities associated with a position, while ____ are skills or abilities associated with a
specific employee.
a. Qualifications, requirements c. Duties, tasks
b. Requirements, qualifications d. Tasks, duties
ANS: B
23 | P a g e
ANS: C
7. SAP's ERP helps the administration of employees taking time off under a government act that allows
compensation for family and medical problems. This act, passed in 1993, is the ____.
a. FIA c. FMLA
b. QOTA d. PROBA
ANS: C
8. Which functional part of the organization communicates changes in salaries, benefits and policies to
employees?
a. Sales and Marketing c. Accounting and Finance
b. Supply Chain Management d. Human Resources
ANS: D
10. What is the name of the group of candidates selected to be interviewed by Fitter Snacker for a particular
position? For example, assume 20 applicants applied and only 3 were selected to be interviewed.
a. Short list c. Final Three
b. Select group d. Applicants
ANS: A
12. In February 2007, a federal appeals court approved class-action status for a discrimination lawsuit
brought by seven women against the retailer, ____.
a. Wal-Mart c. Sears
b. Target d. K-Mart
ANS: A
14. The SAP ERP system evaluates the input data to payroll and notes any discrepancies in a(n) ____.
a. Payroll report c. Discrepancy list
b. Error log d. Off-target list
ANS: B
24 | P a g e
15. An outgrowth of the ____ (referenced in Chapter 5) is that companies must account for the expected costs
that occur as a result of long-term incentives such as the exercising of stock options.
a. Income Statement c. Consolidated statements
b. Balance Sheet d. Sarbanes-Oxley Act
2. When doing process mapping, one of the most important tasks is to define the ____. These define which
activities are to be included in the process.
a. Scales c. Legends
b. Process boundaries d. Scopes
ANS: B
3. Beyond the simple tools of flowcharting, a helpful tool called ____ allows one to describe a business
process in greater or less detail depending on the task at hand.
a. Hierarchical modeling c. Detail focused charting
b. Drill down staging d. Magnifying glass charting
ANS: A
6. In value analysis, which of the following activities is defined as value for which the customer is willing to
pay?
a. Real value c. No value
b. Business value
ANS: A
COMPLETION
25 | P a g e
1. ____________________ programs are core software used by companies to coordinate information in
every area of the business.
ANS:
Enterprise Resource Planning (ERP)
2. A collection of activities that takes one or more kinds of input and creates an output that is of value to the
customer is called a ____________________.
ANS:
business process
3. The business functions of financial accounting, cost allocation and control, planning and budgeting, and
cash-flow management take place in the ____________________ functional area of operation.
ANS:
Accounting and Finance (A/F)
PTS: 1 REF: 2
4. One example of the business function that happens in the human resource area of operation would be
____________________.
ANS:
Recruiting and hiring
Training
Payroll
Benefits
Government compliance
5. An ____________________ includes the computers, people, procedures, and software that store,
organize, and deliver information.
ANS:
Information systems (IS)
6. Information systems designed so that functional areas share data are called ____________________.
ANS:
integrated information systems
(integrated IS)
ANS: Stockout
8. To avoid stockouts, manufacturers might carry extra raw materials known as ____________________.
26 | P a g e
ANS: Safety stock
1. ____________________ states that the number of transistors on a computer chip doubles every 18
months.
2. When the network’s capacity can be expanded by the addition of a server, it’s called
____________________.
ANS:
Scalable
Scalability
3. The technology to hold data in an organized fashion, and to retrieve that data easily, is the
____________________.
ANS:
database management system (DBMS)
4. ____________________ software allows a plant manager to plan production and raw materials
requirements by working backward from the sales forecast.
ANS: MRP
11. In an ERP system, all modules access the ____________________. ANS: central database
27 | P a g e
12. After a company chooses its major modules, it chooses from an assortment of ____________________
options.
ANS: configuration
13. R/3’s design incorporates ____________________, which means that R/3 designers choose the best, most
efficient ways in which business processes should be handled.
ANS: ABAP
15. An assessment of an investment’s project value that is calculated by dividing the value of the project’s
benefits by the value of the project’s cost is known as a(n) ____________________.
ANS: ROI
16. The statistical and logical analysis of large sets of transaction data is known as ____________________.
ANS: E-commerce
ANS:
Customer Relationship Management software
(CRM software)
2. With ____________________, the R/3 system automatically checks all facilities and determines the most
cost-efficient facility to use to meet the customer’s request in terms of ordering and delivering goods.
ANS:
Global ATP
(Global Available-To-Promise)
4. In the following diagram showing “Taking an Order in SAP ERP”, what is B? ____________________
ANS: PO Number
28 | P a g e
6. In the following diagram “Taking an Order in SAP ERP”, what is D? ____________________
2. ____________________ refers to the process of determining production quantities (for raw materials
produced in-house) and order quantities (for purchased items).
3. Any business events that occur between companies and their subsidiaries are known as
____________________.
4. With a properly configured and managed ERP system, there are direct links between the company’s
____________________ and individual transactions that make up the statements, so that fraud and abuse
can be detected more easily.
29 | P a g e