Chapter 12
Integrated Accounting and Enterprise Software
True-False Questions
1.
Middle range accounting software programs can cost as much as $100,000 when
you include the costs of customizing the software for a particular organization.
2.
SAP R/3 is a good example of a middle-range AIS software program.
3.
Internet connectivity is a software feature that is available only in enterprise
resource planning software.
4.
Supply chain management concerns an organization’s ability to interface with its
customers and suppliers.
5.
Integrated accounting software programs process accounting transactions only.
6.
Low-end accounting software is unlikely to include features such as sample
charts of accounts and flexible reporting.
7.
Two important features of enterprise systems are integration and a centralized
database.
8.
MRP I and MRP II systems were forerunners to enterprise information systems.
9.
Traditional ERP systems are mostly back-office systems; ERP II systems are
front-office information systems.
10.
Supply chains are a new phenomenon.
11.
PRM stands for Personnel Relationship Management.
12.
Business intelligence tools have no relationship with CRM.
13.
The best-of-breed approach to software selection is never a good idea.
14.
Extended application interfaces are middleware that allow different software
applications to share data and information.
15.
An e-business portal is a gateway to outside web sites and services.
16.
A business implementing an enterprise system should always conduct business
process reengineering before putting in the new system.
17.
It is not possible to implement an enterprise information system in less than one
year.
18.
Software and consultant selection precedes formulation of the project team in an
enterprise system implementation.
19.
Change management activities are nice to include in an enterprise system
implementation, but they aren't necessary.
20.
The benefits of an enterprise system may include reduced inventory investment
and improved cash management.
21.
It is relatively easy to determine the costs of an ERP system.
22.
Today’s ERP systems provide integration among all of an organization’s major
business processes.
23.
Extended enterprise systems bring customers, suppliers, and other business
partners together.
24.
It is rarely external forces that cause an organization to need new AIS software.
25.
The approach to purchasing accounting software is the same, regardless of
software complexity or price range.
26.
The Internet can be a great tool in learning about specialized accounting
software options.
27.
A Value-Added Reseller can help install and customize software, along with
selling it.
Multiple-Choice Questions
28.
Vertical market accounting software packages typically:
a)
Will cost more than generic accounting software
b)
Requires a company to have software pre-designed to fit their special
needs
c)
Are available for all types of organizations
d)
all of the above are correct
29.
Which of the following software packages is not an example of a middle-range
AIS?
a)
Dynamics GP
b)
MAS 90
c)
Quickbooks
d)
Solomon
30.
Integrated accounting software programs generally include all of the following,
except:
a)
Graphic reporting capabilities
b)
Internet connectivity
c)
One standardized chart of accounts
d)
The ability to handle multiple companies
31.
Enterprise-wide AISs:
a)
Almost never pay for themselves
b)
Do not include any more features than middle-range accounting software
packages
c)
Are seldom used by multinational organizations
d)
Integrate an organization’s financial functions with its other functional
areas
32.
Which of the following is not an important feature of an enterprise system?
a)
Multiple databases
b)
Centralized database
c)
Functional integration
d)
Back-office functionality
33.
Which of the following is not true regarding customer relationship management
(CRM) systems?
a)
CRM does not require data from multiple applications
b)
CRM can help managers to better understand customer purchasing
behavior
c)
CRM requires the collection of customer demographic data
d)
Business intelligence tools can enhance CRM
34.
Components of an ERP's architecture typically include:
a)
A centralized database and application interfaces
b)
Internet portals and multiple databases
c)
A centralized database running on a mainframe computer
d)
A UNIX operating system
35.
Which of the following business processes or functions is unlikely to be part of an
enterprise system?
a)
Accounting/financing
b)
Human resources
c)
Manufacturing
d)
Sales or distribution
e)
all of the above are likely to be included in an enterprise system
36.
Business process reengineering, as it relates to an enterprise system
implementation:
a)
Always precedes the implementation
b)
May precede or be concurrent with implementation depending on the
need to conform with industry best practices
c)
May precede or succeed an implementation depending on the need to
conform with industry best practices
d)
Always succeeds the implementation
37.
Training and change management activities:
a)
Take place just before the go live stage of implementation
b)
Are most effective when conducted throughout design, go live, and postimplementation follow-up
c)
Include technical training only
d)
Do not include the design of user interfaces
38.
Which of the following is true regarding ERP costs?
a)
Enterprise systems tend to be less costly than integrated accounting
software
b)
Enterprise systems are always less costly than best of breed software
solutions
c)
Costs associated with reassigned employees have nothing to do with the
true cost of an enterprise system
d)
There may be many costs that continue after systems implementation
39.
When we talk about a Value-Added Reseller, in the context of accounting and
enterprise software, we are referring to an individual or business that:
a)
Usually assists small businesses select entry-level, small business
software
b)
Is a qualified installer of mid-level or high-end accounting software
c)
Makes special arrangements with software vendors and is able to train
customers
d)
both (b) and (c)
e)
none of the above
40.
An application service provider (ASP):
a)
Owns the software and processes your data on the ASPs computers
b)
Hosts the software and processes your data on your computer system
c)
Is an outsourcing company that processes your data, prepares reports
that you specify, and then mails the results on a weekly basis
d)
none of the above
41.
Which of the following is considered an integrated software system?
a)
Material requirements planning systems (MRP I)
b)
Manufacturing resource planning systems (MRP II)
c)
Enterprise resource planning systems (ERP)
d)
all of the above
42.
When we talk about “front-office” capabilities of today’s ERP systems, we are
referring to which of the following?
a)
The payroll functions
b)
The human resource functions
c)
The administrative functions
d)
none of the above
43.
Extended enterprise resource planning systems facilitate:
a)
Supply chain management
b)
Partner relationship management
c)
Advanced planning and scheduling
d)
all of the above
e)
none of the above
44.
Which of the following is not a sign that indicates the need for a new AIS?
a)
A new vendor has just announced an AIS package with several features
your system does not have
b)
A slowdown in inventory turnover
c)
The owner is concerned about cash flows and profitability
d)
It is taking longer to collect on receivables
e)
It is taking longer to close the books
45.
Which of the following is not true regarding a software package at the entry-level,
such as Peachtree:
a)
It is likely to cost a few thousand dollars to implement it fully
b)
It is scalable
c)
It is unlikely to incorporate Internet connectivity
d)
It is suitable for many businesses with less than $5 million in revenues
e)
It will include sample, customizable Charts of Accounts
46.
Which of the following is not true regarding selecting a new AIS?
a)
For large companies, it is usually cheaper to build a new AIS software
program than to purchase it
b)
It is much easier today to learn about software options because of the
Internet
c)
It is always a good idea to get expert help in choosing an ERP system
d)
Middle-range and high-end AIS software are not available in shopping
malls
47.
Successful implementation of ERP systems typically involves:
a)
Substantial planning
b)
Review of business processes
c)
Support from management
d)
all of the above
48.
How are ERP systems and databases related?
a)
ERP systems are configured around a central database
b)
ERP systems eliminate the need for databases
c)
ERP systems and databases are not related
d)
ERP systems employ small, simple databases
Matching Questions
For the following terms find the correct definition below and place the letter of that
response in the blank space provided before the term. Each definition is used only once
– there are four terms that are not used.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
______
______
______
______
______
______
______
______
______
______
______
______
______
______
scalable
enterprise mashups
hosted solution
supply chain management (SCM) software
bolt-ons
ERP
business application suites
portals
value-added reseller (VAR)
business intelligence (BI) tools
integrated accounting software programs
Internet connectivity
PRM software
enterprise application integration
Definitions:
A. Technology that allows extended ERP systems to interface with individuals inside
and outside an organization
B. Describes a situation where an organization chooses to use cloud computing
services rather than buy software outright
C. Allows companies with legacy applications and databases to integrate and continue
to use those systems
D. Dashboard that collects data from several sources – both inside and outside the firm
E. Software that interfaces with suppliers and customers
F. Enables businesses to create web sites and to engage in e-commerce
G. A key success factor for business process reengineering
H. Software to gather, maintain, and use data to provide better customer service and
customer loyalty
I. Two important features of this type of technology are its integration and a central
database
J. Process to improve overall customer value and to increase the profitability of the
products or services that the organization offers
K. This is the concept that an organization’s software can grow as the business grows
L. When companies have production or work completed in countries like India, China,
Canada, Mexico, or Malaysia
M. Another term for enterprise-wide information system software
N. Software that processes all types of accounting transactions
O. Software that helps managers get the most information from their CRM
P. Software that enhances the working relationship of a company with its strategic
partners
Q. When a company has an ERP and they choose to add a module from another
vendor
R. Offers a broader array or services for more software programs than a qualified
software installer
Short Answer Questions
63.
What can an ERP systems do that a middle-market accounting software cannot?
64.
List some consequences to a company that makes a poor decision in selecting
an AIS.
True-False
1
2
3
4
5
6
7
Multiple Choice
T
F
F
T
T
F
T
28
29
30
31
32
33
34
Matching
D
C
C
D
A
A
A
49
50
51
52
53
54
55
K
D
B
E
Q
I
M
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
T
T
F
F
F
F
T
T
F
F
F
F
T
F
T
T
F
F
T
T
35
36
37
38
39
40
41
42
43
44
45
46
47
48
E
B
B
D
D
A
D
D
D
A
A
A
D
A
56
57
58
59
60
61
62
A
R
O
N
F
P
C