Chapter B5
Enterprise Resource Planning
Multiple Choice Questions
1. Which of the following is not one of the three most common core ERP components focusing on
internal operations?
A) Accounting and finance
B) Production and materials management
C) Business intelligence
D) Human resources
Answer: C Level: Easy Page: 279
Response: Business intelligence is an extended ERP component.
2. What activities do accounting and finance components perform?
A) Track employee information including payroll, benefits, compensation, performance assessment, and
assumes compliance with the legal requirements of multiple jurisdictions and tax authorities.
B) Handle the various aspects of production planning and execution such as demand forecasting,
production scheduling, job cost accounting, and quality control.
C) Manage accounting data and financial processes within the enterprise with functions such as general
ledger, accounts payable, accounts receivable, budgeting, and asset management
D) None of the above
Answer: C Level: Easy Page: 279
Response: These are the primary activities performed by the accounting and finance components.
3. What activities do production and materials management components perform?
A) Track employee information including payroll, benefits, compensation, performance assessment, and
assumes compliance with the legal requirements of multiple jurisdictions and tax authorities.
B) Handle the various aspects of production planning and execution such as demand forecasting,
production scheduling, job cost accounting, and quality control.
C) Manage accounting data and financial processes within the enterprise with functions such as general
ledger, accounts payable, accounts receivable, budgeting, and asset management
D) None of the above
Answer: B Level: Easy Page: 280
Response: These are the primary activities performed by the production and materials management
components.
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4. What activities do human resource components perform?
A) Track employee information including payroll, benefits, compensation, performance assessment, and
assumes compliance with the legal requirements of multiple jurisdictions and tax authorities.
B) Handle the various aspects of production planning and execution such as demand forecasting,
production scheduling, job cost accounting, and quality control.
C) Manage accounting data and financial processes within the enterprise with functions such as general
ledger, accounts payable, accounts receivable, budgeting, and asset management
D) None of the above
Answer: A Level: Easy Page: 281
Response: These are the primary activities performed by the human resource components.
5. Which component is a credit-management feature typically included?
A) Accounting and finance components
B) Production and managerial management components
C) Human resource components
D) Production and materials management components
Answer: A Level: Easy Page: 279
Response: One of the best features of an accounting and finance component is its credit management
feature.
6. Which component can help an organization determine such things as the identification of individuals
who are likely to leave the company unless additional compensation or benefits are provided?
A) Accounting and finance components
B) Production and managerial management components
C) Human resource components
D) Production and materials management components
Answer: C Level: Easy Page: 281
Response: These activities are performed by the human resource component.
7. Which of the following is an extended ERP components?
A) Business intelligence
B) E-business
C) Customer relationship management
D) None of the above
Answer: D Level: Easy Page: 281
Response: All of the above are included in extended ERP.
8. Which extended ERP component collects information used throughout an organization, organizes it,
and applies analytical tools to assist managers with decisions?
A) Business intelligence
B) E-business
C) Customer relationship management
D) Supply chain management
Answer: A Level: Easy Page: 281
Response: These are the primary activities performed by business intelligence.
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179
9. What are two of the primary features of e-business components?
A) E-procurement
B) E-logistics
C) All of the above
D) None of the above
Answer: C Level: Easy Page: 282
Response: E-logistics and e-procurement are both included in the e-business component.
10. Which channels do ERP vendors need to build for access into the ERP systems?
A) One channel for customers (B2B)
B) One channel for suppliers
C) One channel for partners
D) All of the above
Answer: D Level: Easy Page: 282
Response: An ERP vendor must build access for all of the above.
11. According to Meta Group, what is the average time it takes for the average company to see results
from an ERP solution?
A) 6 to 12 months
B) 8 to 18 months
C) 6 to 16 months
D) Impossible to determine
Answer: B Level: Medium Page: 282
Response: According to Meta Group, it can take anywhere from 8 to 18 months to see ERP benefits.
12. According to Meta Group, what is the average savings from a successful ERP implementation?
A) $500,000
B) $1.6 million
C) $5 million
D) Impossible to determine
Answer: B Level: Medium Page: 282
Response: According to Meta Group, average cost savings are $1.6 million.
13. Which of the following is a primary risk associated with an ERP implementation?
A) Quality
B) Lost information
C) Cost
D) Employee turnover
Answer: C Level: Medium Page: 283
Response: Cost is the biggest risk of an ERP implementation.
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Test Bank, Chapter B5
14. Which of the following is a common ERP benefit?
A) Integrate financial information
B) Standardize and speed up manufacturing processes
C) Reduce inventory
D) All of the above
Answer: D Level: Easy Page: 282
Response: All of the above are common ERP benefits.
15. Which of the following is not a common ERP benefit?
A) Standardize manufacturing processes
B) Speed up manufacturing processes
C) Standardize human resource information
D) Speed up human resources
Answer: D Level: Easy Page: 282
Response: ERPs do not speed up human resources, ERPs have no control over human resources.
16. Which of the following is an associated ERP cost?
A) Purchasing the software
B) Hiring external experts to help implement the system correctly
C) Redefining processes
D) All of the above
Answer: D Level: Easy Page: 282
Response: All of the above are ERP costs.
17. Which of the following is not an associated ERP cost?
A) Customization
B) Integration and testing
C) Reduce inventory
D) Data conversion
Answer: C Level: Medium Page: 282
Response: Reducing inventory is not a cost.
18. Which of the following is not one of the three biggest vendors in the ERP market?
A) SAP
B) Oracle
C) PeopleSoft
D) Microsoft
Answer: D Level: Easy Page: 284
Response: Microsoft is not a major ERP vendor.
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19. What does an ERP vendors future success depend on?
A) Its ability to incorporate Internet, e-business, and wireless technology
B) Its ability to incorporate Internet, interface, and wireless technology
C) Its ability to incorporate Interface, e-business, and wireless technology
D) None of the above
Answer: B Level: Easy Page: 285
Response: An ERP must incorporate the Internet, interface, and wireless technology if it wants to stay
competitive in the future.
20. What is the single most important force reshaping the architecture and functionality of ERP
systems?
A) Internet
B) Interface
C) Wireless technology
D) E-business
Answer: A Level: Medium Page: 285
Response: The Internet is the greatest force reshaping ERP.
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Test Bank, Chapter B5