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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Document preview page 1

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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition

Test Bank For Concepts In Enterprise Resource Planning, 4th Edition provides a strong foundation in exam topics with a balance of theoretical knowledge and practical application.

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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 1 preview imageChapter 1: Business Functions and Business ProcessesTRUE/FALSE1.One of the four functional areas of operation is Human Resources (HR).ANS:TPTS:1REF:22.Historically, businesses have had organizational structures that separated the functional areas, butbusiness schools have not been organized like that.ANS:FPTS:1REF:33.Information systems that are designed so functional areas share data are called integrated informationsystems.ANS:TPTS:1REF:44.Sales forecasts are historical records of sales.ANS:FPTS:1REF:75.The business process of Cash Flow Management is handled under the Accounting and Financefunctional area of operation.ANS:TPTS:1REF:2 | 76.The functional area of Supply Chain Management (SCM) sets prices.ANS:FPTS:1REF:7 | 97.When manufacturing runs out of raw materials, it’s known as a stockout.ANS:TPTS:1REF:118.To avoid stockouts, manufacturers might carry extra raw materials. This excess is known as safetystock.ANS:TPTS:1REF:119.Accounts receivable are recorded by the Human Resources department (HR).ANS:FPTS:1REF:1210.The business function of government compliance falls under the Supply Chain Management functionalarea of operation.ANS:FPTS:1REF:2 | 14MULTIPLE CHOICE1.Which of the following is a functional area of operation?
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 2 preview image
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 3 preview imagea.Packagingc.Shippingb.Supply Chain Managementd.BakingANS:BPTS:1REF:22.Which business function is performed by Accounting and Finance?a.Cost allocation and controlc.Benefitsb.Taking sales ordersd.Plant maintenanceANS:APTS:1REF:23.What are the computers, people, procedures, and software that store, organize, and deliver informationin an organization?a.The CPUc.Information systemsb.The Process Systemd.Personnel systemsANS:CPTS:1REF:34.Today’s managers are beginning to think in terms of business process. A business process cuts acrosswhich functional areas of operation?a.Marketing and Salesd.Human Resourcesb.Supply Chain Managemente.All of the abovec.Accounting and FinanceANS:EPTS:1REF:35.Information systems that can be designed so that functional areas of operation share data are called:a.integrated information systemsc.non-middleware information systemsb.complete information systemsd.linked information systemsANS:APTS:1REF:46.Estimates of future product demand, which are the amount of a product that customers will want tobuy, are called:a.sales forecastsc.sales divingb.sales diviningd.sales derivingANS:APTS:1REF:77.Which of the following is an input to the Marketing and Sales functional area?a.Production plansc.Per-unit costb.Raw material ordersd.Accounts payable dataANS:CPTS:1REF:108.When purchasing a computer, the functional area responsible for handling the financial help forpurchasing that computer is:a.Marketing and Salesc.Supply Chain Managementb.Accounting and Financed.Human ResourcesANS:BPTS:1REF:39.Successful business managers view their business operations from the perspective of a(n):a.satisfied customerc.profitable saleb.positive cash flowd.accurate sales forecastANS:APTS:1REF:4
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 4 preview image10.When manufacturing runs out of raw material, it is known as a(n):a.shortfallc.depletionb.empty shelfd.stockoutANS:DPTS:1REF:1111.____ can result in management overinvesting in inventory.a.Bulging raw materialsc.Safety stockb.Stockupd.Excess baggageANS:CPTS:1REF:1112.Which of the following outputs would emerge from the Accounting and Finance functional area?a.Packaging ordersc.Regulation complianceb.Sales strategyd.Financial reportsANS:DPTS:1REF:1313.Which of the following is an input to HR?a.Personnel forecastsc.Layoff and recall company policyb.Sales datad.Travel expense company policyANS:APTS:1REF:14COMPLETION1.____________________ programs are core software used by companies to coordinate information inevery area of the business.ANS:Enterprise Resource PlanningERPEnterprise Resource Planning (ERP)ERP (Enterprise Resource Planning)PTS:1REF:12.A collection of activities that takes one or more kinds of input and creates an output that is of value tothe customer is called a(n) ____________________.ANS:business processPTS:1REF:13.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 FinanceA/FAccounting and Finance (A/F)A/F (Accouting and Finance)
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 5 preview imagePTS:1REF:24.One example of the business function that happens in the human resource area of operation would be____________________.ANS:Recruiting and hiringTrainingPayrollBenefitsGovernment compliancePTS:1REF:25.A(n) ____________________ includes the computers, people, procedures, and software that store,organize, and deliver information.ANS:information systemISinformation system (IS)IS (information system)PTS:1REF:36.Information systems designed so that functional areas share data are called ____________________.ANS:integrated information systemsintegrated ISintegrated information systems (IIS)IISPTS:1REF:47.A shortfall of raw materials is known as a(n) ____________________.ANS:stockoutPTS:1REF:118.To avoid stockouts, manufacturers might carry extra raw materials known as ____________________.ANS:safety stockPTS:1REF:11SHORT ANSWER1.Describe the difference between functional areas of operation and business processes. Give an exampleof a business process.ANS:
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 6 preview imageMost companies have four main functional areas of operation.Each area comprises a variety ofnarrower business functions, which are activities specific to that functional area of operation.Recall that a business process is a collection of activities that takes one or more kinds of input andcreates an output that is of value to the customer.Thinking in terms of business processes helps managers to look at their organization from thecustomer’s perspective.For example, suppose that a customer wants to purchase a new computer.PTS:1REF:2-32.What are integrated information systems?ANS:Sharing data effectively and efficiently between and within functional areas leads to more efficientbusiness processes.Information systems can be designed so that functional areas share data.Thesesystems are called integrated information systems.PTS:1REF:43.Give some examples of Marketing and Sales in a small business such as a coffee shop or some othersimple example.ANS:For the most part, this is a cash business and does not require formal record keeping, but you still needto keep track of your customers so that you can send flyers to repeat customers or send occasionalthank you notes.Thus, your records must show not only the amount of sales, but also must identifyrepeat customers.Product development can be done informally in such a simple business; you gatherinformation aboutwho buys which kind of lemonade and note what customers say about each product.You alsoanalyze historical sales records to spot trends that are not obvious.PTS:1REF:6-74.Choose an example company and give situations for each business process in the accompanyingfigure.Depending on your major or interest, choose one functional area of operation.
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 7 preview imageFigure 1-1Examples of functional areas of operation and their business functionsANS:Depending on the company chosen, and the major, answers will vary.For example, if a student isinterested in HR in an engineering firm, they might discuss the process for recruiting and hiring agraduating senior from their university.Then they could describe some training courses the newengineer would take.Payroll and benefits to the new employee should be discussed.Finally,government compliance such as the equal opportunity act could also be mentioned.PTS:1REF:25.What departments are involved in the business process of selling a new smartphone?ANS:Refer to the accompanying figure for answers:Figure 1-2Sample business processes related to the sale of a smartphone
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 8 preview imagePTS:1REF:36.Describe the material order process in the accompanying figure:Figure 1-3A process view of business operationsANS:When production is alerted to a new order, if raw materials are needed for this order, then productionprompts purchasing to arrange for the purchase and delivery of raw materials. Accounting must payfor those raw materials.They are delivered to the Logistics function and then sent to production tomake the order.PTS:1REF:5
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 9 preview imageChapter 2: The Development of Enterprise Resource Planning SystemsTRUE/FALSE1.Individual information systems for each functional area in a company are known as silos.ANS:TPTS:1REF:202.Silos of information are also known as stovepipes.ANS:TPTS:1REF:203.The complex hardware and software that goes into an ERP system was not available until the 1970s.ANS:FPTS:1REF:214.The capabilities of computer hardware doubling every 18 months is known as Gates’ Law.ANS:FPTS:1REF:215.Scalabilitymeans that the capacity of a piece of equipment can be increased by adding new hardware.ANS:TPTS:1REF:226.The software that holds data in an organized fashion is known as a database management system, or aDBMS.ANS:TPTS:1REF:227.Materials requirements prediction (MRP) software allows a plant manager to plan production and rawmaterials requirements by guess-timation.ANS:FPTS:1REF:238.The direct computer-to-computer exchange of standard business documents is known as EDI, orelectronic data interchange.ANS:TPTS:1REF:239.The functional model of business and management was useful for decades and is still the currentschool of thought.ANS:FPTS:1REF:2410.SAP expanded into international markets but kept the software in a single language, German, and asingle currency, the Euro.ANS:FPTS:1REF:2611.SAP’s R/3 can only run on mainframe computers.ANS:FPTS:1REF:27
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 10 preview image12.SAP’s goal was to develop a standard software product that could be configured to meet the needs ofeach company.ANS:TPTS:1REF:2613.Old systems are known as legacy systems.ANS:TPTS:1REF:2714.Open architecture encourages software companies are encouraged to develop add-on softwareproducts that can be integrated with existing software, such as SAP’s R/3.ANS:TPTS:1REF:2715.In the accompanying figure, data is entered into the system once and then used throughout theorganization.Figure 2-4Data flow within an integrated information systemANS:TPTS:1REF:2916.An ERP system allows data to be entered once, and then used throughout the organization.ANS:TPTS:1REF:2917.An ERP moduleis a module that automates a specific business function.ANS:FPTS:1REF:3118.A company’s level of data integration is highest when the company uses one vendor to supply all of itsERP modules.
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 11 preview imageANS:TPTS:1REF:3119.An important consideration in minimizing the risk of fraud and abuse is defining limits on the dollarvalue of business transactions that certain employees can process.ANS:TPTS:1REF:3220.A best practice is the best, most efficient way of handling a certain business process.ANS:TPTS:1REF:3421.One benefit of ERP systems is that ERP integrates people and data while eliminating the need toupdate and repair many separate computer systems.ANS:TPTS:1REF:3622.A large company will likely spent $1 million on ERP implementation, which includes software andtraining.ANS:FPTS:1REF:3723.Not every company is a good match with the constraints inherent in ERP.ANS:TPTS:1REF:3724.SAP’s internal programming language is Visual Basic.ANS:FPTS:1REF:3825.A return on investment (ROI) is an assessment of an investment project’s value, calculated by dividingthe value of the project’s benefits by the project’s cost.ANS:TPTS:1REF:39MULTIPLE CHOICE1.Individual information systems for each functional area in a company are known as:a.silosc.tubersb.bagpipesd.separated systemsANS:APTS:1REF:202.The complex software and hardware required for ERP systems was not available until thea.1960sc.1980sb.1970sd.1990sANS:DPTS:1REF:213.The observation that the number of transistors built onto a computer chip doubles every 18 months isknown as:a.Moore’s Lawc.Doubletakeb.Gate’s Prophesyd.AccelerationANS:APTS:1REF:21
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 12 preview image4.When a piece of equipment’s capacity is exceeded, its capacity can be increased by adding newhardware.This is commonly known as:a.adaptabilityc.scalabilityb.middlewared.computabilityANS:CPTS:1REF:225.In the 1980s, ____, the technology that holds data in an organized fashion, existed for ERPdevelopment.a.spreadsheetsc.client/server architectureb.DBMSd.word-processorsANS:BPTS:1REF:226.____ software allows a plant manager to plan production and raw materials requirements by workingbackward from the sales forecast.a.DBMSc.MRPb.EDId.EFTANS:CPTS:1REF:237.The direct computer-to-computer exchange of standard business documents is known as:a.MRPc.EDIb.e-maild.DDSANS:CPTS:1REF:238.In a process-oriented company, the flow of information and management activity is ______, in linewith the flow of materials and products.a.horizontal across functionsb.vertical from top level management down through the hierarchical management structurec.vertical through functionsd.horizontal from marketing and sales to inventory and productionANS:APTS:1REF:249.Software ____ are individual programs that can be purchased, installed, and run separately, but extractdata from the common database.a.nodesc.modulesb.chunksd.tidbitsANS:CPTS:1REF:2610.In ______, third-party software companies are encouraged to develop add-on software products thatcan be integrated with existing software.a.open architecturec.integrated piecesb.clip-onsd.piecemeal nodesANS:APTS:1REF:2711.____ is SAP’s biggest competitor.a.J.D. Edwardsc.Microsoftb.PeopleSoftd.OracleANS:DPTS:1REF:28
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 13 preview image12.Old information and computer systems are known as ______.a.dinosaursc.legacy systemsb.passe systemsd.relicsANS:CPTS:1REF:2713.Which ERP package is a popular software choice for managing human resources and financialactivities at universities?a.SAPc.Microsoft Dynamicsb.PeopleSoftd.J.D. EdwardsANS:BPTS:1REF:27-2814.Which R/3 module records sales orders?a.SDc.PPb.MMd.QMANS:APTS:1REF:2915.Which of the following modules in SAP ERP maintains production information?a.SDc.PPb.MMd.QMANS:CPTS:1REF:2916.The______module helps the company manage fixed-asset purchases (plant and machinery) andrelated depreciation.a.Plant Maintenancec.Materials Managementb.Asset Managementd.Product PlanningANS:BPTS:1REF:3017.Which of the following module in SAP is a set of tools that can automate the activities in SAP ERP?a.Workflowc.Financial Accountingb.Controllingd.Project SystemANS:APTS:1REF:3118.When top management is queried on the reasons for implementing ERP systems, the overridinganswer is____.a.cost savingc.increased profitabilityb.controld.inventory managementANS:BPTS:1REF:3119.Which R/3 module records transactions in the general ledger?a.COc.FIb.WFd.PSANS:CPTS:1REF:3120.After a company chooses the modules they want to implement, they must decide on ____ options,which allow the customer to customize the modules to fit their business to some extent.a.settingsc.flexibleb.configurationd.tandem
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 14 preview imageANS:BPTS:1REF:3221.As part of the ______ process, a company can define any number of tolerance groups with a range oflimits, and can then assign employees to these tolerance groups.Figure 2-6A customization example: tolerance groups to set transaction limitsa.manufacturingc.configurationb.developmentd.programmingANS:CPTS:1REF:3222.Which of the following is a benefit to running an ERP system?a.Global integrationb.Elimination of updating and repairing multiple systemsc.Capability to manage operations, not just monitor themd.All of the above are benefitsANS:DPTS:1REF:3623.An ERP system for a large company will cost ____, including software, training, and implementation.a.$100-500 millionc.$1-5 billionb.$1-5 milliond.$50,000-$500,000ANS:APTS:1REF:3724.SAP’s internal programming language is called:a.R/3c.Visual Basicb.C++d.ABAPANS:DPTS:1REF:3825.One assessment of a project’s value is calculated by the:a.DVTc.ROIb.PMTd.PPTANS:CPTS:1REF:3926.Bumpy rollouts of ERP systems are usually caused by:
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 15 preview imagea.software problemsc.hardware problemsb.people problemsd.configuration problemsANS:BPTS:1REF:40COMPLETION1.____________________ states that the number of transistors on a computer chip doubles every 24months.ANS:Moore’s LawPTS:1REF:212.A central-local computer arrangement is called ____________________architecture.ANS:client serverclient/serverclient-serverPTS:1REF:223.____________________means that the capacity of a piece of equipment can be increased by addingnew hardware.ANS:ScalableScalabilityPTS:1REF:224.The software that holds that data in an organized fashion, and that allows for the easy retrieval of data,is the ____________________.ANS:database management systemDBMSdatabase management system (DBMS)DBMS (database management system)PTS:1REF:225.____________________ software allows a plant manager to plan production and raw materialsrequirements by working backward from the sales forecast.ANS:MRPmaterial requirements planningmaterial requirements planning (MRP)MRP (material requirements planning)PTS:1REF:23
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Test Bank For Concepts In Enterprise Resource Planning, 4th Edition - Page 16 preview image6.The prediction of future sales is the ____________________.ANS:sales forecastPTS:1REF:237.____________________ is the direct computer-to-computer exchange of standard businessdocuments.ANS:Electronic data interchangeEDIElectronic data interchange (EDI)EDI (electronic data interchange)PTS:1REF:238.Originially, in English, SAP was an acronym for ____________________.ANS:Systems Analysis and Program DevelopmentPTS:1REF:259.In ____________________, third-party software companies are encouraged to develop add-onsoftware products that can be integrated with existing software.ANS:open architecturePTS:1REF:2710.Old systems are known as ____________________.ANS:legacy systemsPTS:1REF:2711.SAP’s biggest competitor is ____________________.ANS:OraclePTS:1REF:2812.The ____________________records sales orders and scheduled deliveries. Information about thecustomer (pricing, address and shipping instructions, billing details, and so on) is maintained andaccessed from this module.ANS:Sales and DistributionSDSales and Distribution (SD)SD (Sales and Distribution)PTS:1REF:29
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