Enterprise Resource Planning MCQ Quiz!

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Enterprise Resource Planning MCQ Quiz! - Quiz

How Much Do You Know About Enterprise Resource Planning? Today, technology is being used to some extent in different industries, and ERP is software a business uses to manage its daily operations. Take up this exciting quiz and see just how much you know about the benefits of incorporating it into the business.


Questions and Answers
  • 1. 

    The opening case illustrates how IT can be used strategically to:

    • A.

      Collect large quantities of data

    • B.

      Use data-collection techniques to generate usable information

    • C.

      Copy an idea in many different places

    • D.

      None of these

    Correct Answer
    B. Use data-collection techniques to generate usable information
    Explanation
    The opening case illustrates how IT can be used strategically to generate usable information through data-collection techniques. This means that IT can collect large quantities of data and then use specific techniques to analyze and transform that data into meaningful and actionable insights. This allows organizations to make informed decisions and drive strategic initiatives based on the information gathered through data collection and analysis.

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  • 2. 

    Key features of transaction processing systems include:

    • A.

      Dependability

    • B.

      Reliability

    • C.

      Processing capacity

    • D.

      All of these

    Correct Answer
    D. All of these
    Explanation
    Transaction processing systems are designed to handle high volumes of transactions reliably and dependably. They are built to ensure that transactions are processed accurately and efficiently, without any loss of data or errors. These systems are also capable of handling large processing capacities, allowing them to handle a large number of transactions simultaneously. Therefore, the correct answer is "all of these" as all the mentioned features are key characteristics of transaction processing systems.

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  • 3. 

    ____ integrates the planning, management, and use of all of an organization's resources and is designed to integrate its functional areas tightly.

    • A.

      Transaction processing systems

    • B.

      Supply chain management systems

    • C.

      Functional area information systems

    • D.

      Enterprise resource planning systems

    • E.

      Corporate extranets

    Correct Answer
    D. Enterprise resource planning systems
    Explanation
    Enterprise resource planning (ERP) systems integrate the planning, management, and use of all of an organization's resources. These systems are designed to tightly integrate the functional areas of an organization, such as finance, human resources, manufacturing, and sales. By integrating these areas, ERP systems provide a comprehensive view of the organization's operations, allowing for better decision-making and resource allocation. They streamline business processes, improve efficiency, and enhance collaboration across departments. Overall, ERP systems help organizations optimize their resources and improve overall performance.

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  • 4. 

    ____ reports summarize the performance of critical activities.

    • A.

      Ad-hoc

    • B.

      Routine

    • C.

      Exception

    • D.

      Detailed

    • E.

      Key indicator

    Correct Answer
    E. Key indicator
    Explanation
    Key indicators are specific metrics or measurements that provide a summary of the performance of critical activities. These indicators are carefully chosen to represent the most important aspects of a process or project and are used to monitor progress, identify trends, and make informed decisions. Key indicators are often used by managers and stakeholders to assess the overall health and success of an organization or initiative.

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  • 5. 

    To effectively manage by exception (i.e., use exception reports), the company must first create:

    • A.

      Performance standards

    • B.

      Best practices

    • C.

      User information requirements

    • D.

      A database

    • E.

      Employee evaluation guides

    Correct Answer
    A. Performance standards
    Explanation
    To effectively manage by exception, the company must first create performance standards. This is because performance standards set clear expectations and benchmarks for employees to meet. By having these standards in place, managers can easily identify any deviations or exceptions from the expected performance, allowing them to focus their attention on addressing and resolving these issues. Performance standards also provide a basis for evaluating employee performance and determining if any corrective actions or improvements are needed. Without performance standards, it would be difficult for managers to effectively manage by exception and address any performance issues in a timely and efficient manner.

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  • 6. 

    According to the closing case, the consequences of customizing an ERP system to accurately reflect a company's business process can include:

    • A.

      Increased maintenance expenses

    • B.

      The inability to incorporate the latest technological developments

    • C.

      The failure to sustain a competitive advantage

    • D.

      All of these

    Correct Answer
    D. All of these
    Explanation
    Customizing an ERP system to accurately reflect a company's business process can result in increased maintenance expenses because any changes or updates to the system would require additional time and resources. Additionally, customizations may make it difficult to incorporate the latest technological developments, as these updates may not be compatible with the customized system. Finally, customizations can lead to the failure to sustain a competitive advantage, as competitors who have adopted more flexible and up-to-date systems may be able to adapt more quickly to changing market conditions.

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  • 7. 

    The most fundamental information systems in an organization are:

    • A.

      Office automation systems

    • B.

      Decision support systems

    • C.

      Functional area information systems

    • D.

      Transaction processing systems

    • E.

      Business intelligence systems

    Correct Answer
    D. Transaction processing systems
    Explanation
    Transaction processing systems are the most fundamental information systems in an organization because they are responsible for processing and recording daily business transactions. These systems capture, store, and retrieve transactional data, such as sales, purchases, and payments. They ensure the accuracy and reliability of data by performing tasks like data validation, data entry, and data storage. Transaction processing systems are essential for the smooth operation of an organization as they support critical business functions like inventory management, order processing, and financial record-keeping. They provide real-time information and are the backbone of other information systems like decision support systems and business intelligence systems.

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  • 8. 

    Data that the organization's ___ has processed are inputs into the organization's database.

    • A.

      Office automation systems

    • B.

      Functional area information systems

    • C.

      Transaction processing systems

    • D.

      Decision support systems

    • E.

      Digital dashboards

    Correct Answer
    C. Transaction processing systems
    Explanation
    Transaction processing systems are responsible for processing and recording the day-to-day transactions of an organization. These systems capture and store data from various sources such as sales, purchases, and inventory. The processed data is then used as inputs into the organization's database, where it can be accessed and used for various purposes such as generating reports, analyzing trends, and making informed business decisions. Therefore, transaction processing systems play a crucial role in ensuring that accurate and up-to-date data is available in the organization's database.

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  • 9. 

    Which of the following is not an example of a transaction?

    • A.

      A person hired

    • B.

      A payroll check generated

    • C.

      A service sold

    • D.

      Printing a report

    • E.

      Checking out at Walmart

    Correct Answer
    D. Printing a report
    Explanation
    Printing a report is not an example of a transaction because it does not involve the exchange of goods, services, or money between two parties. Transactions typically involve a transfer of value, such as a person being hired, a payroll check being generated, or a service being sold. Checking out at Walmart also involves a transaction as it involves the exchange of money for goods. However, printing a report is a one-sided action that does not involve any exchange or transfer of value, making it not an example of a transaction.

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  • 10. 

    Which of the following is not a process within an information system for Accounting and Finance?

    • A.

      Budgeting

    • B.

      Managing Currencies

    • C.

      Inventory management

    • D.

      Auditing

    • E.

      Expense management

    Correct Answer
    C. Inventory management
    Explanation
    Inventory management is not a process within an information system for Accounting and Finance because it primarily falls under the domain of operations and supply chain management. While Accounting and Finance focus on financial transactions, budgeting, managing currencies, auditing, and expense management, inventory management involves tracking and controlling the flow of goods and materials in an organization. It is more closely related to the operational aspects of a business rather than the financial aspects.

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  • 11. 

    Enterprise resource planning systems take a(n) ___ view of the overall organization.

    • A.

      User's

    • B.

      Management

    • C.

      Functional

    • D.

      Business process

    • E.

      Transactional

    Correct Answer
    D. Business process
    Explanation
    Enterprise resource planning systems take a business process view of the overall organization. This means that these systems focus on integrating and optimizing various business processes across different departments and functions within the organization. By considering the end-to-end flow of activities and information, ERP systems help improve efficiency, coordination, and decision-making throughout the organization. This approach allows for a holistic understanding and management of the organization's operations, rather than just focusing on specific functions or transactions.

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  • 12. 

    ____ integrates the planning, management, and use of all of an organization's resources and is designed to integrate its functional areas tightly.

    • A.

      Transaction processing systems

    • B.

      Supply chain management systems

    • C.

      Functional area information systems

    • D.

      Enterprise resource planning systems

    • E.

      Corporate extranets

    Correct Answer
    D. Enterprise resource planning systems
    Explanation
    Enterprise resource planning (ERP) systems integrate the planning, management, and use of all of an organization's resources. These systems are designed to tightly integrate the functional areas of an organization, such as finance, human resources, manufacturing, and supply chain management. By integrating these areas, ERP systems provide a comprehensive view of the organization's operations, allowing for better coordination and decision-making. They streamline business processes, improve efficiency, and enable real-time data sharing across departments. Overall, ERP systems help organizations optimize their resources and improve overall performance.

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  • 13. 

    Enterprise resource planning systems are very ____ software products, meaning that companies typically have to change their ___ to accommodate how the software functions.

    • A.

      Unstructured, business processes

    • B.

      Structured, reporting relationships

    • C.

      Structured, accounting processes

    • D.

      Unstructured, inventory control

    • E.

      Structured, business processes

    Correct Answer
    E. Structured, business processes
    Explanation
    Enterprise resource planning (ERP) systems are structured software products, meaning that companies typically have to change their business processes to accommodate how the software functions. ERP systems are designed to streamline and integrate various business functions such as accounting, inventory control, and reporting. Therefore, companies need to align their existing business processes with the standardized processes offered by the ERP system. This ensures that the software can effectively manage and automate the company's operations, resulting in improved efficiency and productivity.

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  • 14. 

    ___ are inter-organizational ERP systems that provide Web-enabled links between an organization's key business systems and its customers, suppliers, business partners, and others.

    • A.

      Functional area information systems

    • B.

      Supply chain management systems

    • C.

      Transaction processing systems

    • D.

      Office automation systems

    • E.

      ERP II systems

    Correct Answer
    E. ERP II systems
    Explanation
    ERP II systems are inter-organizational ERP systems that provide Web-enabled links between an organization's key business systems and its customers, suppliers, business partners, and others. These systems go beyond the internal operations of a company and extend their functionality to external stakeholders. They enable seamless integration and collaboration with external entities, allowing for efficient supply chain management, customer relationship management, and other inter-organizational processes.

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  • 15. 

    ___ are the most successful solutions or problem-solving methods for achieving a business objective.

    • A.

      Business functions

    • B.

      Best practices

    • C.

      Optimal strategies

    • D.

      Business processes

    • E.

      Enterprise solutions

    Correct Answer
    B. Best practices
    Explanation
    Best practices refer to the most successful solutions or problem-solving methods that have been identified and proven to be effective in achieving a business objective. These practices are developed through experience, research, and analysis, and are widely recognized and accepted within a particular industry or field. They represent the collective wisdom and knowledge of experts and are considered the most efficient and effective ways to achieve desired outcomes. By adopting and implementing best practices, businesses can improve their performance, streamline their operations, and increase their chances of success.

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  • 16. 

    Which of the following was not included in early ERP systems?

    • A.

      Sales and Marketing

    • B.

      Inventory Control

    • C.

      Order Entry

    • D.

      Distribution

    • E.

      Raw materials management

    Correct Answer
    A. Sales and Marketing
    Explanation
    Sales and Marketing was not included in early ERP systems. Early ERP systems focused more on internal processes such as inventory control, order entry, distribution, and raw materials management. Sales and Marketing functions were typically managed separately using other software or manual processes. However, modern ERP systems now often include modules for Sales and Marketing to provide a more integrated and comprehensive solution for businesses.

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  • 17. 

    ___ reports contain special information not found in routine reports.

    • A.

      Ad hoc

    • B.

      Summary

    • C.

      Drill-down

    • D.

      Key-indicator

    • E.

      Exception

    Correct Answer
    A. Ad hoc
    Explanation
    Ad hoc reports are specifically designed to provide unique and specific information that is not typically found in routine reports. These reports are created on an as-needed basis to address specific queries or requirements. Unlike summary or drill-down reports, which provide aggregated or detailed information respectively, ad hoc reports offer customized and specialized insights. Key-indicator reports focus on important metrics, while exception reports highlight anomalies or deviations from normal patterns. However, ad hoc reports stand out as they are tailored to fulfill specific information needs that are not covered by routine reporting.

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  • 18. 

    ___ reports are produced at scheduled intervals.

    • A.

      Ad hoc

    • B.

      Routine

    • C.

      Exception

    • D.

      Detailed

    • E.

      Key indicator

    Correct Answer
    B. Routine
    Explanation
    Routine reports are produced at scheduled intervals. These reports are regular and recurring, providing information on a regular basis. They are typically generated on a daily, weekly, or monthly basis, depending on the needs of the organization. Routine reports help in monitoring and tracking ongoing activities, performance, and progress, providing a consistent and predictable flow of information. They are often used for decision-making, planning, and performance evaluation purposes.

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  • 19. 

    ___ reports summarize the performance of critical activities.

    • A.

      Ad hoc

    • B.

      Routine

    • C.

      Exception

    • D.

      Detailed

    • E.

      Key indicator

    Correct Answer
    E. Key indicator
    Explanation
    Key indicators are used to summarize the performance of critical activities. These indicators provide a quick and concise overview of the key aspects of the activities, allowing decision-makers to easily assess the progress and performance. Key indicators are often used in performance management and monitoring systems to track and evaluate the success of critical activities. They help to identify any areas of concern or improvement, allowing for timely action to be taken. Overall, key indicators play a crucial role in summarizing and communicating the performance of critical activities.

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  • 20. 

    When the chief financial officer of a company wants a report on business units that have spent 10 percent more than their allotted budget, she would be requesting which type of report?

    • A.

      Ad hoc

    • B.

      Routine

    • C.

      Exception

    • D.

      Detailed

    • E.

      Key indicator

    Correct Answer
    C. Exception
    Explanation
    When the chief financial officer of a company wants a report on business units that have spent 10 percent more than their allotted budget, she would be requesting an "Exception" report. This type of report is used to highlight and identify deviations or exceptions from the norm or budget. In this case, the CFO is specifically interested in identifying business units that have exceeded their budget by a significant margin, making an exception report the most appropriate choice.

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  • 21. 

    ___ reports include only information that falls outside certain threshold standards.

    • A.

      Ad hoc

    • B.

      Routine

    • C.

      Exception

    • D.

      Detailed

    • E.

      Key indicator

    Correct Answer
    C. Exception
    Explanation
    Exception reports include only information that falls outside certain threshold standards. These reports are designed to highlight unusual or exceptional data or events that deviate from the norm. They provide a means for identifying and addressing potential issues or problems that require attention or further investigation. By focusing on exceptions, these reports help streamline decision-making processes and prioritize actions to be taken.

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  • 22. 

    Refer to IT's About Business 10.1 - USA Cycling: SmartTurn is all of the following except

    • A.

      Software-as-a-Service

    • B.

      Inventory and warehouse management system

    • C.

      Restricted to a single location

    • D.

      A Transaction Processing system

    • E.

      A Functional Area Information System

    Correct Answer
    C. Restricted to a single location
    Explanation
    SmartTurn is not restricted to a single location. It is a cloud-based inventory and warehouse management system that allows users to manage their inventory and warehouse operations from multiple locations.

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  • 23. 

    Refer to Opening Case - Is Baseball a Science?: Which of the following is false?

    • A.

      Standards are being developed for baseball fielding metrics

    • B.

      Fielding metrics will eliminate the need for specialized coaches

    • C.

      Motion-capture software can be used to determine where a fielder was standing when a ball is hit

    • D.

      Data collected by the motion-capture software can be used to identify fielders that have fast reaction times

    • E.

      Fielding metrics can be used to evaluate players

    Correct Answer
    B. Fielding metrics will eliminate the need for specialized coaches
    Explanation
    Fielding metrics will not eliminate the need for specialized coaches because while data and metrics can provide valuable insights and information about a player's performance, they cannot replace the expertise and guidance that specialized coaches bring to the table. Coaches play a crucial role in developing players' skills, providing feedback, and helping them improve their technique and decision-making on the field. Fielding metrics can be a useful tool for evaluation and analysis, but they cannot completely replace the role of coaches in player development.

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  • 24. 

    USA Cycling primarily implemented SmartTurn to ____.

    • A.

      Help customers find products more easily

    • B.

      Save money

    • C.

      Help with the inventory management

    • D.

      Ensure their bike wheels always turned correctly

    Correct Answer
    C. Help with the inventory management
    Explanation
    USA Cycling implemented SmartTurn to help with the inventory management. The system is designed to assist in tracking and managing the organization's inventory, ensuring that they have accurate and up-to-date information on their stock levels, location, and movement of items. This helps streamline operations, improve efficiency, and reduce costs associated with inventory management.

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  • 25. 

    ____ is when business transactions are processed in groups.

    • A.

      Batch processing

    • B.

      OLAP

    • C.

      OLTP

    • D.

      Source data automation

    Correct Answer
    A. Batch processing
    Explanation
    Batch processing is the correct answer because it refers to the practice of processing business transactions in groups. In batch processing, multiple transactions are collected and processed together at a later time, rather than being processed individually in real-time. This method is often used when efficiency and speed are not critical, allowing organizations to process large volumes of transactions at once, reducing processing time and resources required.

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  • 26. 

    Budgetary control is a common form of ___

    • A.

      Financial Planning and Budgeting

    • B.

      Managing Financial Transactions

    • C.

      Control and Auditing

    • D.

      In-House Logistics and Materials Management

    Correct Answer
    C. Control and Auditing
    Explanation
    Budgetary control is a common form of control and auditing. It involves monitoring and managing the financial resources of an organization to ensure that budgets are adhered to and financial goals are achieved. This process includes comparing actual financial results with the budgeted amounts, identifying variances, and taking corrective actions if necessary. Through budgetary control, organizations can maintain financial discipline, allocate resources effectively, and evaluate the performance of different departments or projects.

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  • 27. 

    Product life cycle management is a common activity associated with ____

    • A.

      Financial Planning and Budgeting

    • B.

      Managing Financial Transactions

    • C.

      Control and Auditing

    • D.

      In-House Logistics and Materials Management

    Correct Answer
    D. In-House Logistics and Materials Management
    Explanation
    Product life cycle management involves managing the various stages of a product's life, from its inception to its discontinuation. This includes activities such as product development, production planning, inventory management, and distribution. In-house logistics and materials management play a crucial role in managing the movement of materials and products within an organization, ensuring that they are available at the right place and time. Therefore, it is logical to associate product life cycle management with in-house logistics and materials management.

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  • 28. 

    Creating a call center for employee problems is a common activity associated with ____

    • A.

      HR Planning and Management

    • B.

      Managing Financial Transactions

    • C.

      Control and Auditing

    • D.

      In-House Logistics and Materials Management

    Correct Answer
    A. HR Planning and Management
    Explanation
    Creating a call center for employee problems is a common activity associated with HR Planning and Management. This is because HR departments are responsible for managing and addressing employee issues, and a call center can be an effective tool for providing support and resolving problems. By centralizing communication through a call center, HR can efficiently handle employee concerns, provide guidance, and ensure that employee problems are addressed in a timely manner.

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  • 29. 

    Which of the following is an extended ERP module?

    • A.

      Business intelligence

    • B.

      Financial management

    • C.

      Operations management

    • D.

      Human resource management

    Correct Answer
    A. Business intelligence
    Explanation
    Business intelligence is an extended ERP module because it provides organizations with the ability to analyze and interpret large amounts of data to make informed business decisions. It allows for the collection, integration, and analysis of data from various sources within the organization, providing valuable insights and reports. This module helps in identifying trends, forecasting, and improving overall business performance. It is an essential tool for organizations looking to gain a competitive edge and maximize their ERP system's capabilities.

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  • 30. 

    The ____ generation of ERP was designed to address front-office business processes.

    • A.

      1st

    • B.

      2nd

    • C.

      3rd

    • D.

      4th

    Correct Answer
    B. 2nd
    Explanation
    The second generation of ERP was designed to address front-office business processes. This generation of ERP systems focused on integrating customer relationship management (CRM) functionalities into the ERP system, allowing businesses to streamline and automate their sales, marketing, and customer service processes. By incorporating front-office processes into the ERP system, businesses were able to improve customer satisfaction, increase sales efficiency, and enhance overall business performance.

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  • 31. 

    Which of the following systems generate reports?

    • A.

      TPS

    • B.

      FAIS

    • C.

      ERP

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    All of the systems mentioned in the options - TPS (Transaction Processing System), FAIS (Financial Accounting Information System), and ERP (Enterprise Resource Planning) - are capable of generating reports. TPS generates reports on transactional data, FAIS generates financial reports, and ERP generates various types of reports related to different aspects of an organization's operations. Therefore, all of the above systems generate reports.

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  • 32. 

    Nonroutine reports are the same as ____ reports.

    • A.

      Exception

    • B.

      Daily

    • C.

      Ad hoc

    • D.

      Sporadic

    Correct Answer
    C. Ad hoc
    Explanation
    Nonroutine reports are the same as ad hoc reports. Ad hoc reports are generated on an as-needed basis, typically in response to a specific request or problem. These reports are not part of a regular or scheduled reporting process, unlike daily reports which are generated on a daily basis. Exception reports highlight unusual or exceptional data, while sporadic reports are generated irregularly. Therefore, the correct answer is ad hoc.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 14, 2014
    Quiz Created by
    Samanthawallo
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