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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

E) C) and D)
F) All of the above

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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

E) All of the above
F) B) and C)

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MRP applications are:


A) Management resource programs software
B) Manufacturing resources planning software
C) Management reporting programs software
D) Manufacturing reporting programs software

E) All of the above
F) B) and C)

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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.

E) All of the above
F) B) and D)

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Because the ERP system will cleanse and correct data errors while importing legacy data into its RDBMS, a minimum of time, effort, and dollars will be spent on data conversion.

A) True
B) False

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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

E) B) and D)
F) B) and C)

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Business process reengineering means tailoring both the business process to IT and the IT process to the business process for best functionality and processing.

A) True
B) False

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All ERP vendors have developed cloud-based ERP products.

A) True
B) False

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Processes in supply chain management involve trading processes from a supplier to a business only.

A) True
B) False

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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

E) A) and D)
F) B) and D)

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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.

E) C) and D)
F) A) and B)

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

A) True
B) False

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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.

E) All of the above
F) A) and D)

Correct Answer

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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.

E) B) and D)
F) A) and D)

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

A) True
B) False

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

A) True
B) False

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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.

E) All of the above
F) B) and C)

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Within an ERP system unauthorized access to a purchase module could trigger a related unauthorized payment within accounts payable.

A) True
B) False

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The financial module of an ERP such as SAP might contain such components as financial accounting, management accounting, corporate governance, and inventory.

A) True
B) False

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Tier one describes software used by midsize businesses and organizations.

A) True
B) False

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