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Basic Enterprise Resource Planning (ERP) MCQ

1. ________ is an advantage of cloud-based erp systems.

Recovery

Control

Cost

Availability

Answer

Correct Answer: Recovery

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2. Which of the following modules should never have a financial impact on the accounting module?

Manufacturing

Purchasing

Human resources

Payroll

Answer

Correct Answer: Human resources

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3. Why should the ERP systems from vendors from other countries be evaluated with caution?

They typically cost more than the domestic software.

There are laws in place about using international software.

Every country uses different accounting rules.

There may be currency, grammar, and business practices which differ in the software vendors' companies which will be difficult to work with.

Answer

Correct Answer: There may be currency, grammar, and business practices which differ in the software vendors' companies which will be difficult to work with.

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4. What must an ERP software package do in order to be classified as ERP software?

It must handle the Human Resource function.

It must provide the functions of at least two separate systems and integrate them.

It must support dynamic reporting functions.

It must allow the user greater functionality than the legacy software.

Answer

Correct Answer: It must provide the functions of at least two separate systems and integrate them.

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5. What would be considered a mid-tier ERP system?

One which has functionality beyond simple accounting and business practices, but not adequate enough to handle international transactions, multiple locations, complex transactions and several users at one point in time

A simple system which handles only accounting and payroll functions

A system which can be deployed worldwide to multiple locations and handle multiple simultaneous users, and is suitable for large scale retail chains

One which is neither too costly nor too cheap

Answer

Correct Answer: One which has functionality beyond simple accounting and business practices, but not adequate enough to handle international transactions, multiple locations, complex transactions and several users at one point in time

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6. Why would employees in the accounting department not be allowed to access the payroll module?

So that they may not be able to see sensitive data. They need only to see the accounting impact of the payroll which they can see through the accounting module

So that they may not be able to determine how many employees work for the company

So that they may not be able to see what the current payroll tax percentages are

So that they may not be able to get a copy of the company organization chart

Answer

Correct Answer: So that they may not be able to see sensitive data. They need only to see the accounting impact of the payroll which they can see through the accounting module

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7. Why do many companies utilize third-party software to do financial reporting instead of using the ERP system built-in capabilities?

ERP systems do not come with any financial reporting ability.

Traditionally the built in reporting abilities have been weak and not flexible and do not meet the requirements of the companies.

Companies do not understand how to use the ERP financial reporting.

The third party software is an inexpensive alternative.

Answer

Correct Answer: Traditionally the built in reporting abilities have been weak and not flexible and do not meet the requirements of the companies.

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8. Why is the security measure of not allowing the deletion of information sometimes a disadvantage?

Employees can not cover up mistakes they make.

The management can see what errors are being frequently made and help employees learn to avoid them.

A mistake can be traced back to a specific entry and employee.

Employees create

Answer

Correct Answer: Employees create

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9. What level of detail can a person using an ERP system view profitability, assuming the system has been set up to facilitate reporting on the most detailed level?

By cost center

By product line

Only at the profit & loss statement, companywide level

At a granular level, for a specific item

Answer

Correct Answer: At a granular level, for a specific item

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10. Which of the following factors should be considered in the ERP system selection?

The employee sophistication

The company hiring policy

Both the current and the future needs of the company

The lowest cost system available

Answer

Correct Answer: Both the current and the future needs of the company

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11. Which of the following is an advantage of having centralized data in an ERP system?

It enables the users not to share data with other departments.

It creates additional work for the employees by way of coordinating their data.

It eliminates the need to enter information into multiple systems.

It enables the employees to view the payroll module and see what other people are earning.

Answer

Correct Answer: It eliminates the need to enter information into multiple systems.

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12. Why would a company choose a system which is larger in nature than the company's current needs?

It is cheaper to buy a larger and more complex system.

The company anticipates growth and will grow into the functionality of the system.

It is easier to implement a larger software system.

There are more consultants familiar with the larger systems.

Answer

Correct Answer: The company anticipates growth and will grow into the functionality of the system.

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13. What does the newest "ERP 2" software offer that original ERP systems did not?

The ability for multiple users to be simultaneously logged in

Web access and the ability of vendors, customers and suppliers to log in from the internet

Ability for modules to interact with each other

Time stamping of transactions

Answer

Correct Answer: Web access and the ability of vendors, customers and suppliers to log in from the internet

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14. Why is it important to factor in future growth into IT decisions made in the present?

You can choose the lowest cost alternative and learn how to create work arounds to facilitate the growth.

It will be more cost effective to implement all upgrades that will handle future growth simultaneously.

You can purchase expensive and overpowered equipment for use now and state that it is for future growth.

The ERP system will typically be replaced every 3-5 years; so future planning is essential.

Answer

Correct Answer: It will be more cost effective to implement all upgrades that will handle future growth simultaneously.

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15. What advantage does a data warehouse have over using multiple databases?

It allows the ERP system to read and write data faster by using a central location.

It allows the use of a web based ERP system.

The ERP system is typically hosted on the data warehouse along with the actual data.

It costs less than using the existing company servers as data sources.

Answer

Correct Answer: It allows the ERP system to read and write data faster by using a central location.

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16. Why is it important to have a project team dedicated to an ERP system implementation?

Only certain employees should know how the system works.

The costs of the employees' time can be capitalized.

It keeps the otherwise idle employees busy.

It is a several month long project which requires the input and coordination of all departments.

Answer

Correct Answer: It is a several month long project which requires the input and coordination of all departments.

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17. Why can the interconnected nature of data between different departments in an ERP system be a disadvantage?

It facilitates the flow of information.

It reduces input error since data can be used by several departments.

Employees in one department do not want to share information with others and resist utilizing the full functionality of the system.

It reduces the flow of information between departments.

Answer

Correct Answer: Employees in one department do not want to share information with others and resist utilizing the full functionality of the system.

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18. Why does "out of the box" ERP software typically need customization before it is useful?

It will not work at all without customization.

The software is usually built with a manufacturing company in mind.

The modules need to be purchased separately and then woven together.

The software is complex and built to fit the needs of companies from all industries with the expectation that it will be tailored for the specific customers.

Answer

Correct Answer: The software is complex and built to fit the needs of companies from all industries with the expectation that it will be tailored for the specific customers.

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19. What is the decision which must be made during the Inventory module implementation and will have long lasting effects on the company?

Choice of the inventory accounting methodology such as FIFO or LIFO

What suppliers will be used to purchase inventory from

What the bill of materials is for all items produced

Who will be the primary employee responsible for maintaining the inventory module

Answer

Correct Answer: Choice of the inventory accounting methodology such as FIFO or LIFO

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20. What is the main task involved in the configuration stage?

Determining which users have what security rights

Designing and customizing the system to do what the company needs within the confines of the system's abilities

Setting up tables in the data warehouse

Report designing

Answer

Correct Answer: Designing and customizing the system to do what the company needs within the confines of the system's abilities

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21. Which of the following is typically not a unique module?

Accounting

Customer relationship management

Accounts payable

Purchasing

Answer

Correct Answer: Accounts payable

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22. What is the term used for the past software which is typically replaced by an ERP system?

Old software

Integrated software

Legacy software

Prior version software

Answer

Correct Answer: Legacy software

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23. Why are third party consultants usually employed to help with the implementation process?

The costs of the consultants can be capitalized to the project instead of expensed.

The implementation is beyond the scope of most company employees.

It is required as part of the software purchase contract.

They provide in-depth knowledge on the software and implementation process, which are seldom the employees skills.

Answer

Correct Answer: They provide in-depth knowledge on the software and implementation process, which are seldom the employees skills.

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24. Who from the IT department in an organization should be responsible for maintaining the ERP system?

A devoted employee who is an ERP system expert

The Chief Technology Officer

A college intern

A data warehouse expert

Answer

Correct Answer: A devoted employee who is an ERP system expert

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25. What is one of the main reasons which prevents an ERP system implementation from being successful?

Poor or no mapping of current business processes

Lack of management support

Inadequate budget

Lack of employee training manuals

Answer

Correct Answer: Poor or no mapping of current business processes

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26. Why is an ERP system not suitable for all companies?

It is more efficient to use several individual software packages.

Employees have a difficult time switching over to the new system.

It has some short term disadvantages even though long term benefits outweigh them.

It can be expensive and provides more functionality than is needed by smaller companies.

Answer

Correct Answer: It can be expensive and provides more functionality than is needed by smaller companies.

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27. What part of the IT infrastructure typically needs to be upgraded in order to facilitate the use of an ERP system?

Desktops

Cabling

Servers

Backup drives

Answer

Correct Answer: Servers

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28. Why would an accounting employee need access to the manufacturing module?

To get the head count of manufacturing employees

To determine the current payroll tax rate

To get the list of employees

To look at specific financial data related to work orders

Answer

Correct Answer: To look at specific financial data related to work orders

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29. Why should end users be involved in system demonstrations and selection?

Their time is cheaper than that of the high paid consultants.

It is better to give them the ultimate decision making power.

There is no reason to get end user feedback if they are involved in making the decision.

They will have valuable feedback apart from the cost and technical perspective.

Answer

Correct Answer: They will have valuable feedback apart from the cost and technical perspective.

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30. What is the purpose of mapping business processes prior to implementation?

It allows for lower costs in implementation.

It helps with the selection of the ERP software.

It allows the implementation team to understand the flow of data.

Answer

Correct Answer: It allows the implementation team to understand the flow of data.

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31. What information from the payroll module should never be shared with the other modules and departments?

Names of the employees

Wage rates for the employees

Total count of all the employees

The current payroll tax rate

Answer

Correct Answer: Wage rates for the employees

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32. What is the most efficient way for the employees to access the ERP desktop client without having it installed on their local machines?

By using a virtual private network to log in remotely to the server the ERP system is installed on

By using web portal directly linked to the ERP

By physically going to the IT department to use a terminal linked to the ERP system

By creating their system entries in Excel and uploading them to the ERP system

Answer

Correct Answer: By using a virtual private network to log in remotely to the server the ERP system is installed on

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33. What are the best practices related to ERP software design?

ERP software should be designed primarily with manufacturing in mind.

ERP modules should be independent and not interrelated.

Users should all be restricted to one module.

ERP software is designed with general and often adopted rules of business in order to meet most customers' needs before customization.

Answer

Correct Answer: ERP software is designed with general and often adopted rules of business in order to meet most customers' needs before customization.

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34. What reason would a company have for disallowing the ERP desktop to all users and instead require them to use a virtual private network to access the system?

It allows for updates to be installed in one central location.

Local software will typically run faster than the software accessed over a VPN.

Lower processing power is needed on users desktops.

It enables the IT department to trouble shoot more effectively.

Answer

Correct Answer: Local software will typically run faster than the software accessed over a VPN.

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35. Which module of the ERP system is typically the driving force for switching away from the legacy systems in search of better functionality?

The human resources module

The information technology module

The accounting module

The payroll module

Answer

Correct Answer: The accounting module

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36. What do transaction identification numbers allow to be done?

To time stamp transactions.

To specifically identify who performed an entry or transaction in the ERP system, and all consequences related to it.

To show the general ledger coding of a transaction.

Answer

Correct Answer: To specifically identify who performed an entry or transaction in the ERP system, and all consequences related to it.

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37. How does the manufacturing process module impact the accounting module?

Head count from the manufacturing department affect accounting allocations.

Employee wages of the manufacturing employees are posted to the general ledger.

As an item is produced and moves through the manufacturing process, direct and indirect costs impact the general ledger.

Financial reports need to be created in order to facilitate the manufacturing department.

Answer

Correct Answer: As an item is produced and moves through the manufacturing process, direct and indirect costs impact the general ledger.

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38. How is data transferred between user terminals and the data warehouse?

Over phone lines

Through network cabling

Through wireless

All of the above

Answer

Correct Answer: All of the above

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39. What additional costs besides the cost of the software need to be considered while selecting the ERP software?

Offsite server costs

The cost of infrastructure upgrades needed, of training and documentation, and of the upgrades to other software needed

The cost of the additional staff needed to run the system on the backend

Replacement costs of the system in future

Answer

Correct Answer: The cost of infrastructure upgrades needed, of training and documentation, and of the upgrades to other software needed

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40. What does the abbreviation "ERP" represent?

Enterprise Resource Performance

Expert Representative Planning

Expert Representation Performance

Enterprise Resource Planning

Answer

Correct Answer: Enterprise Resource Planning

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41. Which of the following is not a typical module of an ERP system?

General accounting

Software development

Customer relationship management

Human resources

Answer

Correct Answer: Software development

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42. Which of the following is a way to create increased security in the ERP system against employee tampering of data?

Allow employees access to all modules to create an open environment

Limit the number of employees with access to ten or fewer

Allow employees access only to the modules and functions they need for their specific jobs

Create a strict audit routine where the management regularly audits employee transactions

Answer

Correct Answer: Allow employees access only to the modules and functions they need for their specific jobs

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43. Which of the following is a disadvantage of the web based ERP software?

It can be accessed anywhere without special desktop software.

If a company loses an internet connection, they will have no access.

There is no real time data reporting available.

The cost is usually lower than that of a desktop solution of equal ability.

Answer

Correct Answer: If a company loses an internet connection, they will have no access.

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44. What are the four general steps in an implementation plan?

Designing, Training, Testing, Phasing Out

Configuration, Documentation, Testing, Training

Project Design, Documentation, Training, Phasing Out

Testing, Training, Implementation, Configuration

Answer

Correct Answer: Configuration, Documentation, Testing, Training

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45. Why would a web-based software be chosen over a desktop system?

It is faster in general than desktop systems.

It is best suited for companies where all employees are in one location.

The per seat license fee is typically much lower.

It can be hosted online and mitigates the company's need to purchase several hardware upgrades to support the new system.

Answer

Correct Answer: It can be hosted online and mitigates the company's need to purchase several hardware upgrades to support the new system.

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46. What is involved in the "data migration" process of implementation?

Identifying what data is to be migrated to the new system and establishing a clear cut off

Creating a copy of the data and moving it to the server the ERP system will exist on

Manually entering all the previous data into the new system

Identifying which data is the most important to migrate and deleting all other past data

Answer

Correct Answer: Identifying what data is to be migrated to the new system and establishing a clear cut off

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47. What is meant by "extensions" to the ERP system which need to be implemented?

Adding additional modules

Third party software which integrates with the software and data capture devices such as scanners

Deploying the software to offices outside of the home office

Buying additional seats for users that need to be set up during implementation

Answer

Correct Answer: Third party software which integrates with the software and data capture devices such as scanners

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48. What data from the human resource module can be used by the payroll module in order to reduce duplicate entries?

Wage rates

Payroll tax percentages

Employee names and addresses

Overtime calculations

Answer

Correct Answer: Employee names and addresses

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49. Why would user desktops need to be upgraded in order to use the ERP system?

The ERP system reseller often includes desktop upgrades as a mandatory clause in the software contract.

It will be able to handle future upgrades to the system several years later.

Employees will be expected to work extra hard once the new system is in place.

To run additional third party software.

Answer

Correct Answer: To run additional third party software.

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50. Why is there often resistance from employees to adopting a new ERP system?

They do not receive any of the benefits of the new system, but have to learn it.

They do not want the company to spend money on a new system.

They prefer to work harder and longer hours.

They feel it creates an unfair advantage over competitors.

Answer

Correct Answer: They do not receive any of the benefits of the new system, but have to learn it.

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51. Why would a busy retail chain with multiple locations and a head office choose a high-tier ERP system?

They are looking for a lower cost solution.

They need fewer user's licenses.

The ERP system will be run only at the head office with no store interface.

Their needs require that multiple users and locations should be able to use the system simultaneously with no latency.

Answer

Correct Answer: Their needs require that multiple users and locations should be able to use the system simultaneously with no latency.

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52. What feature of an ERP system would a manufacturing company require that a financial services company would not?

Job costing

Human resources

Customer relationship management

Financial reporting

Answer

Correct Answer: Job costing

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53. Why does having all employees of a company use the same ERP system, enhance the efficiency of the business?

Having all employees on one system allows for faster system response.

All the employees can duplicate data entries in the same system.

Everyone is utilizing the same data and can view it in real time.

The management can create their own reports and reduce the burden on the staff.

Answer

Correct Answer: Everyone is utilizing the same data and can view it in real time.

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54. What is a data warehouse?

The physical location where the company's servers are stored

A server which only the ERP system can access

A repository of the company's data from all of the company's systems to facilitate reporting and analysis

The server where the ERP software is hosted

Answer

Correct Answer: A repository of the company's data from all of the company's systems to facilitate reporting and analysis

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55. How do end users of the ERP software learn how to navigate and utilize the software?

Through training conducted by the software expert for the employees department

Through training offered by the ERP software vendor

Through online training and documentation

All of the above

Answer

Correct Answer: All of the above

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56. Why is ERP software typically more expensive as compared with individual software products?

The ERP system enjoys a monopoly which leads the prices to be fixed at a high level.

It includes several modules which companies do not need but have to pay for.

The support feature of the software is more than what is offered by individual software vendors.

The software essentially contains several individual software packages all at once, and the price also includes the cost of the time spent by the consultants to implement the software.

Answer

Correct Answer: The software essentially contains several individual software packages all at once, and the price also includes the cost of the time spent by the consultants to implement the software.

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57. How do switching costs affect a company once an ERP system is implemented?

It is easy to switch over from one ERP system to a different one as implementation costs are low.

Once employees learn one ERP system, they can use any ERP system; so switching costs are low.

They are prohibitive and make it difficult to change to a different system frequently.

It is expensive to maintain ERP systems; so switching over to a lower tier system is beneficial.

Answer

Correct Answer: They are prohibitive and make it difficult to change to a different system frequently.

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58. How can a company receive help in choosing between several systems without detailed knowledge of them?

By utilizing the services of the ERP consultants who also act as third-party resellers and can help companies choose between several options

By taking the sales people's advice when listening to their presentation

By nominating an employee to learn everything possible and make a selection

By Using the lowest cost possible as the deciding factor

Answer

Correct Answer: By utilizing the services of the ERP consultants who also act as third-party resellers and can help companies choose between several options

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59. How long does it take to implement a mid-tier ERP system on an average?

1 week

1 month

Several months

2 years

Answer

Correct Answer: Several months

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60. How does the ERP system know which general ledger accounts to credit and debit based on the type of entry made into the system?

They are predetermined by the ERP software vendor and companies must adopt their GL structure.

All entries go into a suspense account that an accountant must code correctly at month end.

All possibilities for entry are mapped to specific codes during the implementation phase.

Each user must be trained in general ledger coding conventions and manually enter them for each transaction.

Answer

Correct Answer: All possibilities for entry are mapped to specific codes during the implementation phase.

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61. Who should be the ultimate owner of the ERP system in an organization?

The human resources department

The payroll department

The information technology department

The accounting department

Answer

Correct Answer: The information technology department

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62. Which of the following is an advantage of using open source ERP software?

Security

Cost

Scalability

Agility

Answer

Correct Answer: Security

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63. Technology that involves a large number of computers connected through a communication network such as the Internet is called as:

Cloud Computing

Distributed Systems

Wide Area Network

Distributed Network

Answer

Correct Answer: Cloud Computing

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64. What is one of the most important things to do at the planning phase?

Define user roles and activities

Define the top management team

Pay for the project

Install the software

Define the goals of the project

Answer

Correct Answer: Define user roles and activities

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65. What is a common criticism on organizations looking to implement ERPs?

It can have a disruptive effect on the organizations operations

Doesn’t allow for decisions and databases from all parts of the organization to be integrated

Implementation is expensive

Effect on business is disappointing

Answer

Correct Answer: Doesn’t allow for decisions and databases from all parts of the organization to be integrated

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66. What does the R in SAP R3 represent?

Release

Robust

Report

Real Time

Answer

Correct Answer: Real Time

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67. What is ERP system nervousness?

Reaction of user population to use new ERP system

Inability to meet business requirements

Defects associated in testing

How a system reacts to changes

Answer

Correct Answer: How a system reacts to changes

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68. What is the first activity in ERP projects?

Analysis

Business modeling

Implementation

Testing

Answer

Correct Answer: Business modeling

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69. When Table in source system records changes to a replication table, it is known as a:

Archiving Table

Logging Table

Table to Table

Recording Table

Answer

Correct Answer: Logging Table

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70. What phase is data conversion done?

Testing

Training

Go-live

Configuration

Answer

Correct Answer: Go-live

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71. All of the following are disadvantages of an ERP system, EXCEPT:

Data security is compromised

Overcoming resistance to sharing sensitive business information

Customizations can be problematic

Extensive training is required

Answer

Correct Answer: Data security is compromised

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72. What does SAP represent?

Software and Application Products in Data Warehousing

Software Assisted Products

Systems Applications and Products in Data Processing

Systematic Application Products

Answer

Correct Answer: Systems Applications and Products in Data Processing

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73. True or False? The benefit of an MRP system depends on the ability to have large amounts of unorganized information readily accessible

True

False

Answer

Correct Answer: False

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74. Which of the following are tasks involved during 'Execution' phase of ERP implementation?

Document the new procedures

Identify roles

Analyze existing system

Analyze the system

Answer

Correct Answer: Document the new procedures

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75. What does ETL mean in data warehousing?

Expected Total Lines

Extract Transform Load

Expected Total Load

Extract True Load

Answer

Correct Answer: Extract Transform Load

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76. What is the strategy of package evaluation?

Take it as a trial

Do it right the first time

Accept with error

Trial and error

Answer

Correct Answer: Do it right the first time

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77. What module is not typical in ERP applications

Finance

Marketing

Customer Relationship Management

Project Management

Answer

Correct Answer: Marketing

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78. Which of the folowing extensions is used by Oracle Reports Files?

SQL

RDF

CSV

PDF

Answer

Correct Answer: RDF

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79. When all modules are implemented at all locations at the same time, it is called:

Wave Approach

Big Bang

Parallel Approach

Phased Approach

Answer

Correct Answer: Big Bang

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80. The ability to view detailed source documents from the summary reports is known as:

Expansion

Drilling

Boring

Data Mining

Answer

Correct Answer: Drilling

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81. Which technology is used in building SAP R/3?

Wide Area Network

Cloud Computing Technology

Client Server Technology

Mainframe Technology

Answer

Correct Answer: Client Server Technology

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82. What is the type of backup which is taken while the Oracle database is still up and running and in archive log mode?

Restore

Cold Backup

Archiving

Hot Backup

Answer

Correct Answer: Hot Backup

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83. ERP systems have been traditionally been an on premise installation. In what other technology form are they also available as?

Cloud computing

Service-oriented architecture

Everything as a service

Business process as a Service

Answer

Correct Answer: Cloud computing

Note: This Question is unanswered, help us to find answer for this one

84. What is the term for a broad category of applications and technologies that enable gathering, storing, analyzing and providing access to data to help users make informed decisions?

ERP

Multiple Data Management

Middle Data Measurement

Business Intelligence

Answer

Correct Answer: Business Intelligence

Note: This Question is unanswered, help us to find answer for this one

85. SaaS (Software as a Service) is also referred to as:

IBM Software

On Demand Software

Cloud Software

In House Software

Answer

Correct Answer: On Demand Software

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86. What is the terminology used to understand the present business situation?

Present

Now

As Is

Current

Answer

Correct Answer: As Is

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87. What is the main drawback of legacy systems?

More modules

Less effectiveness

No integration

High cost

Answer

Correct Answer: No integration

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88. What is considered the “third generation of manufacturing software.”?

MRP II

Y2K

ERP

MRP

Answer

Correct Answer: ERP

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89. What is the most important step of an ERP implementation?

Installing

Testing

Gap analysis

Training

Answer

Correct Answer: Gap analysis

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90. ERP systems integrate all business management functions but does NOT include:

Accounting and finance

Planning

Human resources

Inventory/materials management

Process improvement

Answer

Correct Answer: Process improvement

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91. What is the direct computer-to-computer exchange of standard business document known as?

MRP

Workflow

EDI

Answer

Correct Answer: EDI

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92. In order for an ERP implementation to be successful, all the following must be completed successfully, EXCEPT

Test the application

Continue using same processes

Change Management activities

Project management in every phase

Answer

Correct Answer: Continue using same processes

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93. Which technology is key to cloud computing?

Standardization

ERP

Microsoft

Virtualization

Answer

Correct Answer: Virtualization

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94. What are software, computers, procedures alongwith human resources used to store data in organization called?

Information System

Data Maintenance

CPU

Processing System

Answer

Correct Answer: Information System

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95. Which is TRUE about Enterprise Resource Planning (ERP)?

An advanced MRP II system that ties-in customers and suppliers

Not currently practical

Severely limited by current MRP computer systems

Not related to MRP

Answer

Correct Answer: An advanced MRP II system that ties-in customers and suppliers

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96. What options in ERP allow businesses to customize the modules to meet their needs?

Optional

Modularity

Processing

Configuration

Answer

Correct Answer: Configuration

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97. Which system in ERP includes risk management and access controls to promote corporate accountability?

Governance Risk & Compliance

Manager Self Service

High Performing Asset

Accounting & Auditing

Answer

Correct Answer: Governance Risk & Compliance

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98. All the following are major reasons why companies would undertake ERP, EXCEPT:

Follow competitors IT strategy

Standardize HR information

Standardize manufacturing processes

Integrate financial data

Answer

Correct Answer: Follow competitors IT strategy

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99. All of the following are advantages of ERP, EXCEPT:

Requires major changes in company and process to implement

Creates commonality of databases

Increases communications and collaboration worldwide

Helps integrate multiple sites and business units

Answer

Correct Answer: Requires major changes in company and process to implement

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100. Which of the following is true of ERP?

Low start up cost

Non time consuming

Low maintenance cost

Requires intensive employee training

Answer

Correct Answer: Requires intensive employee training

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101. In an ERP environment, what does MDM mean?

Most Data Management

Measurable Data Management

Middle Data Measurement

Master Data Management

Answer

Correct Answer: Master Data Management

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102. Which is NOT a critical success factor for successful implementation of ERP system

Top management support

Competence of ERP staff

User training

Number of ERP application releases

Answer

Correct Answer: Number of ERP application releases

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103. What does EDI stand for?

Electronic Data Interchange

Environmental Data Interchange

Enormous Data Interchange

External Data Interface

Answer

Correct Answer: Electronic Data Interchange

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104. Which of the following automates business process execution?

Swimlane

Flowchart

Wizard

Workflow

Answer

Correct Answer: Workflow

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105. What task should companies conduct before implementing ERPs?

Survey

Test

Case study

Feasibility study

Answer

Correct Answer: Feasibility study

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106. All of the following describes an ERP system, EXCEPT:

Enable people in different business areas to communicate

Provides foundation for collaboration between departments

Decreases worker productivity and efficiency of processes

Widely adopted in large organizations to store critical knowledge used to make decisions that drive organization performance

Answer

Correct Answer: Decreases worker productivity and efficiency of processes

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107. Which of the following is NOT another name of ERP?

Employee relationship plan

Integrated Enterprise system

Enterprise system

Material requirement planning (MRP)

Answer

Correct Answer: Employee relationship plan

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108. What is the process of analyzing step by step program code and fixing any encountered problems called?

Reviewing

Testing

Scoping

Debugging

Answer

Correct Answer: Debugging

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109. Which of the following is NOT a typical cost associated with ERP implementation?

Process rework

Consulting fees

Leadership buy-in

Integration and Testing

Answer

Correct Answer: Leadership buy-in

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110. Which is correct about ERP?

Inexpensive to implement

Automates and integrates the majority of business processes

Existed for over a decade

Does not integrate well with functional areas

Answer

Correct Answer: Automates and integrates the majority of business processes

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111. What system involves activities to enable transfer of products and services from supplier to customer?

Supply Chain

Customer Relationship

Transport

Movement

Answer

Correct Answer: Supply Chain

Note: This Question is unanswered, help us to find answer for this one

112. What is the terminlogy used for old systems?

Legacy systems

Previous systems

Preceding systems

Heritage systems

Answer

Correct Answer: Legacy systems

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113. Which of the following is NOT an advantage of ERP?

Revenue tracking, from invoice through cash receipt

Sales forecasting, which allows inventory optimization

Order tracking, from acceptance through fulfillment

Decentralized business data

Answer

Correct Answer: Decentralized business data

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114. What is an information system that allows data to be shared throughout the organization called?

Unrestricted

Unintegrated

Integrated

Bounded

Answer

Correct Answer: Integrated

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115. Which area is Manufacturing and Production is a key function?

Human Resources

Accounting and Finance

Supply Chain Management

Finance

Marketing and Sales

Answer

Correct Answer: Supply Chain Management

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116. How do we measure the numeric figures against performance measures?

Annual Reports

Stakeholders Review

Statutory Reports

Key Performance Indicators

Answer

Correct Answer: Key Performance Indicators

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117. What would be a potential reason for an ERP software implementation to fail?

Hardware Issues

Software issues

People issues

All of these

Answer

Correct Answer: All of these

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118. Which is NOT a financial business function that is supported by ERP?

Raising capital

Accounts Receivable

General ledger

Accounts payable

Answer

Correct Answer: Raising capital

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119. Which module in ERP system is used to manage manufacturing processes?

Human Capital

Sales and Distribution

Transportation

Material Requirements Planning

Answer

Correct Answer: Material Requirements Planning

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120. Which area is the Financial Module responsible for?

Define Strategy Group

Cash Flow Management

Create Purchase Order

Product Planning

Answer

Correct Answer: Cash Flow Management

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121. Which factor is most important to consider when implementing an ERP application?

Training requirements

Meets business strategy and requirements

Find the lowest cost ERP application

Consulting partner to implement

Answer

Correct Answer: Meets business strategy and requirements

Note: This Question is unanswered, help us to find answer for this one

122. When the source code is made available to general public for use and modification, it is known as:

Closed Source

Flexible Code

Support Code

Open Source

Answer

Correct Answer: Open Source

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123. The technology used to manage organization's customers relationships is known as:

ERP

SCM

LAN

CRM

Answer

Correct Answer: CRM

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124. True or False? A business "process" may involve activities from more than one business "functional area"

False

True

Answer

Correct Answer: True

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125. What does ERP stand for?

Enterprise Resource Planning

Enterprise Report Planning

Extra Resource Planning

Enterprise Review Planning

Answer

Correct Answer: Enterprise Resource Planning

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126. What does DBMS represent?

Database Material System

Database Management System

Database Movement System

Duplicate Billing Management System

Answer

Correct Answer: Database Management System

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127. In ERP, what does BI represent?

Buyer Information

Business Installation

Budget Information

Business Intelligence

Answer

Correct Answer: Business Intelligence

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128. What are most organizations implementing or planning to implement?

Complex software

Simple software

Separate software solutions

Packaged software solutions

Answer

Correct Answer: Packaged software solutions

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129. What is the technology that is used to publish content to the web and collaborate under a single server?

Server

ERP

Interface

Sharepoint

Answer

Correct Answer: Sharepoint

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130. How many business functionalities can an ERP package handle?

Three

Two

All

One

Answer

Correct Answer: All

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