Test

 
True/False

Indicate whether the statement is true or false.

___T_  1.   One of the four functional areas of operation is Human Resources (HR).

___F_  2.   Historically, businesses have had organizational structures that separated the
functional areas, but business schools have not been organized like that.

___T_  3.   Information systems that are designed so functional areas share data are called
integrated information systems.

___F_  4.   The functional area of Supply Chain Management (SCM) sets prices.

__F__  5.   Sales forecasts are historical records of sales.

___F_  6.   Accounts receivable are recorded by the Human Resources department (HR).

___F_  7.   The business function of government compliance falls under the Supply Chain
Management functional area of operation.

__T__  8.   The business process of Cash Flow Management is handled under the Accounting
and Finance functional area of operation.

 
 __T__  9.   When manufacturing runs out of raw materials, it’s known as a stockout.

__T__ 10.   To avoid stockouts, manufacturers might carry extra raw materials.  This excess is
known as safety stock.

___F_ 11.   The complex hardware and software that goes into an ERP system was not available
until the 1970s.

___F_ 12.   The capabilities of computer hardware doubling every 18 months is known as Gates’
Law.

_T___ 13.   Scalability refers to a piece of equipment’s capacity being exceeded and that
capacity being expanded by adding new hardware.

__T__ 14.   The software that holds data in an organized fashion is known as a database
management system, or a DBMS.

__F__ 15.   Materials requirements planning (MRP) software allows a plant manager to plan
production and raw materials requirements by guess-timation.

__T__ 16.   The direct computer-to-computer exchange of standard business documents is

known as EDI, or electronic data interchange.

_F___ 17.   The functional model of business and management was useful for decades and is still
the current school of thought.

_T___ 18.   SAP’s first software project involved developing a materials and logistics
management system for ICI.
  

__F__ 19.   SAP expanded into international markets but kept the software in a single language,
German, and a single currency, the Euro.

__F__ 20.   SAP’s R/3 can only run on mainframe computers.

___T_ 21.   Old systems are known as legacy systems.

__T__ 22.   Open architecture is defined as allowing third-party software vendors to write
software to integrate with the main package, such as SAP’s R/3.

__F__ 23.   The Oracle corporation began selling ERP software; they recently acquired a firm
known for its database management systems.

__T__ 24.   Defining the dollar limits on transactions in the SAP R/3 system is known as limiting
the tolerance groups.

__T__ 25.   R/3’s design incorporates best practices, which means the designers have chosen the
best, most efficient way in which a business process should be handled.

__T__ 26.   One benefit of ERP systems is the elimination of updating and repairing many
separate computer systems.

__F__ 27.   A large company might spent $1 million on ERP implementation, which includes
software and training.

__T__ 28.   Not every company is suited to ERP systems.

  

__F__ 29.   SAP’s internal programming language is visual basic.

___T_ 30.   The return on investment (ROI) is an assessment of an investment’s project’s value
that is calculated by dividing the value of the project’s benefits by the value of the project’s cost.

__T__ 31.   In the following figure, data is entered into the system once and then used
throughout the organization.

__T__ 32.   Individual information systems for each functional area in a company are known as
silos.

__T__ 33.   Silos of information are also known as stovepipes.

__F__ 34.   The most current version of SAP’s software is known as R/3.

__T__ 35.   The most current version of SAP’s software is known as SAP ERP.
  

__T__ 36.   In SAP R/3, relatively permanent data about customers is kept in the Customer
Master Data table.

__T__ 37.   In SAP R/3, relatively permanent data about inventory is kept in the Material Master
Data table.

__F__ 38.   In SAP R/3, relatively permanent data in the Material Master Data table is available
to only one module, the Materials Management module.

_F___ 39.   In SAP R/3, relatively permanent data about customers in the Customer Master Data
table is available to only the Sales and Distribution module.

_T__  40.   SAP R/3’s system allows one to group customers, which is commonly known as an
"organizational structure".

__T__ 41.   In SAP R/3, the linked set of document numbers is called the "document flow".

___T_ 42.   In SAP R/3 the electronic evidence of a transaction is called a document.

__F__ 43.   The first step in the SAP ERP sales and distribution process is the Sales Order
Processing step.

__F__ 44.   Pricing cannot be set or configured in the SAP ERP system.

__T__ 45.   Pricing can be set using condition techniques.

  

__F__ 46.   CRM software stands for Custom Resource Management.  This is a specialized type
of ERP.

__T__ 47.   Global ATP allows for searching of a particular product at multiple plants
worldwide.

__T__ 48.   Returned products to a company are processed more efficiently if the customer first
calls for a RMA.

__F__ 49.   An inquiry in the SAP ERP system occurs in the Delivery step of the Sales and
Distribution cycle.

__T__ 50.   In the SAP ERP system, delivery means releasing the documents that the warehouse
uses to pick, pack, and ship orders, rather than the traditional definition of transferring goods.

__F__ 51.   The PO Number is a number assigned by Fitter Snacker to track orders in the SAP
ERP system.

__T__ 52.   With on-demand CRM, the software and computer equipment reside with the CRM
provider; it is not installed in-house.

__F__ 53.   Good production decisions can be made knowing only the current level of finished
goods inventory.

__F__ 54.   Production planners aggregate products into product groups to make forecasts and
plans more accurate.

 
__T__ 55.   The Sales and Operations Planning process is used to combine the sales forecast with
capacity information to determine a production plan for finished goods.

__F__ 56.   Demand Management in the SAP R/3 system is the process where sales forecasts are
adjusted to incorporate the impact of marketing initiatives.

__F__ 57.   The MRP process determines the schedule of finished goods production.

__T__ 58.   Supply Chain Management is as much an approach to doing business with suppliers
as it is a technology.

__F__ 59.   In a traditional supply chain, demand information is transmitted rapidly to all
members of the supply chain.

__F__ 60.   ERP systems are necessary to implement good supply chain management.

__F_  61.   The percentage of the order that the supplier provides in the first shipment is known
as the first-rate.

__T__ 62.   Make to order items are produced to fill customer’s requests.

__F__ 63.   The cost it normally takes to manufacture a product, which is usually derived from
historical data and any changes that have occurred since then, is known as a structured cost.

__T__ 64.   Rough-cut planning is a common term in manufacturing for aggregate planning.

 
 __T__ 65.   The production plan for all finished goods is known as the MPS, or the master
production schedule.

_T___ 66.   Another term for the recipe of a product is the bill of materials.

__F__ 67.   Lead times and lot sizing help a company determine the transfer of goods to the
customer.

__F__ 68.   Because Fitter Snacker uses large quantities of oats, the most cost-effective way to
purchase oats is to buy a farm and grown them.

__T__ 69.   Because Fitter Snacker uses large quantities of oats, the most cost-effective way to
puchase oats is in bulk hopper-truck quantities, which means that the material must be ordered in
44,000 pound quantities.

__F__ 70.   The percentage of the order that the supplier provided in the first shipment is known
as the initial order lead time.

__F__ 71.   The initial fill rate measures the time needed for the supplier to fill the order.

 
Multiple Choice

Identify the choice that best completes the statement or answers the question.

____  72.   Which of the following is a functional area of operation?

a. Packaging c. Shipping
b. Supply Chain Management d. Baking
 

 
 ____  73.   Which business function is performed by Accounting and Finance?
a. Cost allocation and control c. Benefits
b. Taking sales orders d. Plant maintenance
 

____  74.   What are the computers, people, procedures, and software that store, organize, and
deliver information in an organization?
a. The CPU c. Information systems
b. The Process System d. Personnel systems
 

____  75.   Today’s managers are beginning to think in terms of business process. A business
process cuts across which functional areas of operation?
a. Marketing and Sales d. Human Resources
b. Supply Chain Management e. All of the above
c. Accounting and Finance  
 

____  76.   Information systems that can be designed so that functional areas of operation share
data are called:
a. Integrated information systems c. Non-middleware information systems
b. Complete information systems d. Linked information systems
 

____  77.   Analyses that attempt to predict the future sales of a product are called:
a. Sales forecasts c. Sales diving
b. Sales divining d. Sales deriving
 

____  78.   Which of the following is an input to the Marketing and Sales functional area?
a. Production plans c. Per-unit cost
b. Raw material orders d. Accounts payable data
 

____  79.   Which of the following outputs would emerge from the Accounting and Finance
functional area?
a. Packaging orders c. Regulation compliance
b. Sales strategy d. Financial reports
 

____  80.   When purchasing a computer, the functional area responsible for handling the
financial help for purchasing that computer is
a. Marketing and Sales c. Supply Chain Management
b. Accounting and Finance d. Human Resources
 

____  81.   When purchasing a computer, the functional area responsible for technical support is
a. Marketing and Sales c. Supply Chain Management
b. Accounting and Finance d. Human Resources
 

____  82.   When manufacturing runs out of raw material, it’s known as a(n)
a. Shortfall c. Depletion
b. Empty shelf d. Stockout
 

____  83.   ____ results in management over investing in extra raw materials
a. Bulging raw materials c. Safety stock
b. Stockup d. Excess baggage
 

____  84.   Which of the following is an input to HR?

a. Personnel forecasts c. Layoff and recall company policy
b. Sales data d. Travel expense company policy
 

____  85.   The complex software and hardware required for ERP systems was not available until
the
a. 1960s c. 1980s
b. 1970s d. 1990s
 

 
 ____  86.   The observation that the number of transistors built onto a computer chip doubles
every 18 months is known as:
a. Moore’s Law c. Doubleting
b. Gate’s Prophesy d. Acceleration
 

____  87.   When a piece of equipment’s capacity is exceeded, its capacity can be increased by
adding new hardware.  This is commonly known as:
a. Adaptability c. Scalability
b. Middleware d. Computability
 

____  88.   In the 1980s, ____, the technology that holds data in an organized fashion, existed for
ERP development.
a. Spreadsheets c. Client/Server
b. DBMS d. Word-processors
 

____  89.   ____ software allows a plant manager to plan production and raw materials
requirements by working backward from the sales forecast.
a. DBMS c. MRP
b. EDI d. EFT
 

____  90.   The direct computer-to-computer exchange of standard business documents is known
as:
a. MRP c. EDI
b. E-mail d. DDS
 

____  91.   Software ____ are individual programs that can be purchased, installed, and run
separately, but extract data from the common database.
a. Nodes c. Modules
b. Chunks d. Tidbits
 

 
 ____  92.   When third party software companies are able to write software to integrate with an
ERP system, it is said to have:
a. Open architecture c. Integrated pieces
b. Clip-ons d. Piecemeal nodes
 

____  93.   Old information and computer systems are known as:
a. Dinosaurs c. Legacy systems
b. Passe systems d. Aged ones
 

____  94.   ____ is SAP’s biggest competitor.

a. J.D. Edwards c. Microsoft
b. PeopleSoft d. Oracle
 

____  95.   Which R/3 module records sales orders?

a. SD c. PP
b. MM d. QM
 

____  96.   Which R/3 module records transactions in the general ledger?
a. CO c. FI
b. WF d. PS
 

____  97.   After a company chooses the modules they want to implement, they must decide on
about ____ options, which allow the customer to customize the modules to fit their business to
some extent.
a. Settings c. Optional
b. Configuration d. Tandem
 

____  98.   Which of the following is a benefit to running an ERP system?

a. Global integration
b. Elimination of updating and repairing multiple systems
c. Capability to manage operations, not just monitor them
d. All of the above are benefits
 

____  99.   An ERP system for a large company will cost ____, including software, training, and
implementation.
a. $50-500 million c. $1-5 billion
b. $1-5 million d. $50,000-$500,000
 

____ 100.   SAP’s internal programming language is called:

a. R/3 c. Visual Basic
b. C++ d. ABAP
 

____ 101.   One assessment of a project’s value is calculated by the:

a. DVT c. ROI
b. PMT d. PPT
 

____ 102.   Bumpy rollouts of ERP systems are usually caused by:
a. Software problems c. Hardware problems
b. People problems d. Configuration problems
 

____ 103.   The statistical and logical analysis of large sets of transaction data is called:
a. Digging c. Data mining
b. Hunting d. Hacking
 

____ 104.   ____ is the conducting of business over the Internet.

a. R/3 c. E-Commerce
b. ABAP d. SCM
 

 
____ 105.   Tolerance groups can be set in the SAP system as shown below. A tolerance setting
is an example of one of the many _____________ settings in the SAP system.

a. Running c. Configuration
b. Switch d. Programming
 

____ 106.   Individual information systems for each functional area in a company are known as
a. Silos c. Tubers
b. Bagpipes d. Separated systems
 

____ 107.   Which ERP package is a popular software choice for managing human resources and
financial activities at universities?
a. SAP c. Microsoft Dynamics
b. PeopleSoft d. J.D. Edwards
 

____ 108.   Which of the following modules in SAP ERP maintains production information.
a. SD c. PP
b. MM d. QM
 

 
 ____ 109.   Which of the following module in SAP is a set of tools that can automate the
activities in SAP ERP?
a. Workflow c. Financial Accounting
b. Controlling d. Project System
 

____ 110.   What are software that enables systems to exchange data without complicated
software links?
a. ABAP modules c. Legacy systems
b. Web Services d. Best practices
 

____ 111.   In SAP ERP the electronic evidence of a transaction is called a ____.
a. trail d. audit number
b. marker e. document
c. tag  
 

____ 112.   A customer calls up to find out how much 1000 units of a product would cost. This is
an example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing  
 

____ 113.   A customer is granted a 10% price discount in a large order. This is an example of an
activity in: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing  
 

____ 114.   A customer's order is checked to see if it can be produced and delivered by the
requested date. This is an example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing  
 
  

____ 115.   A customer's documents are released to the warehouse so that the goods can be
gathered, packed and boxed. This is an example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing  
 

____ 116.   A customer's remittance causes Cash to be debited and Accounts Receivable to be
credited. This is an example of: ____ in the sales and distribution process.
a. Pre Sales Activities d. Delivery and Billing
b. Sales Order Processing e. Payment
c. Inventory Sourcing  
 

____ 117.   In SAP ERP, the history of a transaction (such as a sales order) can be researched by
looking at its ____.
a. Trail mix d. Material Master Data
b. Transaction index e. Sales Master Data
c. Document flow  
 

____ 118.   What kind of software can give top management an overview of a company's
complete relationship with a customer?
a. One to One Marketing Software
b. Open Relationship Software
c. Denouement Software
d. Customer Relationship Management Software
e. Supply Chain Management Software
 

____ 119.   In the sales order process, there is a number used in the SAP ERP sales order that in
a paper process would be pre-printed on the sales document, usually in sequential number order. 
It’s assigned by the customer to the sales order.  What is this number?
a. Customer ID c. Material Number
b. Purchase Order Number d. Billing Code
 

 
 ____ 120.   Setting prices for customers can be very complex.  SAP helps by offering a control
mechanism, called ____, to determine how much to charge a given customer for a given product.
a. Pricing Variance c. Condition Technique
b. Price Fixing d. Fluctuation
 

____ 121.   The ____ system communicates with SAP ERP, BW, and APO systems in
developing and executing its plans.
a. PPO c. CRM
b. SSA d. GUp
 

____ 122.   This software can automatically route customers who contact the company to a sales
representative. Companies can use this software to forecast customer needs.
a. Marketing encyclopedias c. One-to-one marketing
b. Sales campaign management d. Sales force automation
 

____ 123.   The SAP ERP system allows users to define various ways to group customers and
salespeople.  These groups are called ____.
a. Organizational structures c. Document flows
b. Master data d. Audit trails
 

____ 124.   In ____ CRM, the software and equipment reside with the CRM provider; it is not
installed in-house.
a. Walk-up c. Internet
b. On-demand d. ERP
 

____ 125.   Which of the following are benefits to CRM?

a. Lower costs
b. Higher revenue
c. Improved strategy and performance measurement
d. All of the above
 

 
 ____ 126.   A make-to-stock production system is one where:
a. Items are made for inventory in anticipation of sales orders
b. Items are produced to fill specific customer orders
c. Items are assembled for a specific customer order from an inventory of
components
d. Both a and c
 

____ 127.   An unexpected increase in product demand can lead to:

a. A depletion of finished goods inventories
b. A depletion of raw materials inventories
c. Increased overtime and transportation expenses
d. Both a and b
e. All of the above
 

The Fitter Snacker company sold 6,435 cases of snack bars in June of the previous year.  They
are expecting sales to increase by 3% this year.  In addition, they are launching a promotional
campaign in May, which they expect will increase sales in June by an additional 500 cases.

____ 128.   What is the sales forecast for June of this year that Fitter Snacker should use?
a. 6,628 c. 6,935
b. 7,128 d. 7,143
 

Fitter Snacker can produce 333.3 cases of snack bars per day during the standard 8-hour work
week.  They can work 2 hours of overtime per weekday, plus 4 hours on Saturday.  They are
developing an SOP for a month with 23 weekdays and 4 Saturdays.

____ 129.   What is the maximum number of cases they can produce in the month if they
schedule workers for overtime on the weekdays only?
a. 7,666 c. 9,582
b. 9,199 d. 10,249
 

 
 ____ 130.   What is the maximum number of cases they can produce in the month if they
schedule workers for overtime on weekdays and Saturdays?
a. 7,666 c. 9,582
b. 9,199 d. 10,249
 

____ 131.   The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January. 
If there are 22 days in the month, how many cases of snack bars should be produced in a 4-day
week?
a. 188 c. 940
b. 752 d. 1034
 

Fitter Snacker orders oats in 44,000 lb. batches.  Given the following (incomplete) MRP record:

 
Oats     Lead Time = 2 Week 1 Week 2 Week 3 Week 4 Week 5
weeks
Gross Requirements (lb) 18,000 24,323 24,872 18,464 17,938
Scheduled     44,000      
Receipts
Planned            
Receipts
On Hand 23,635 5,635 25,312 440    
Planned Orders            
 

____ 132.   What Planned Orders will the MRP logic create:
a. An order for 44,000 units in Period 2
b. An order for 44,000 units in Period 3
c. An order for 44,000 units for periods 2 and 3
d. An order for 88,000 units for period 3
 

____ 133.   What will the On Hand inventory be in Period 5 after the system calculated planned
orders?
a. 0 c. 8,038
b. 440 d. 14,038
  

____ 134.   After MRP is run in the SAP R/3 system:

a. The stock/requirements list and MRP list are both updated and show the
same information.
b. The MRP list is updated but the stock/requirements list is unaffected.
c. The stock/requirements list is updated but the MRP list is unaffected
d. None of the above.
 

____ 135.   In detailed production scheduling, longer production runs of a particular product:
a. Increase the available capacity by reducing the frequency of setups.
b. Increases finished goods inventory levels.
c. Reduces finished goods inventory levels.
d. Both a and b.
e. Both a and c.
 

____ 136.   The order of the steps in the SAP R/3 production planning process are:
a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP
b. Sales Forecasting, Demand Planning, Demand Management, MRP
c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management
d. Sales Forecasting, Sales and Operations Planning, Demand Management,
MRP
 

____ 137.   The production plan for Fitter Snacker calls for 7000 cases for the snack bar product
group in June.  If the snack bar product group consists of NRG-A and NRG-B bars with the
proportion 70% NRG-A bars and 30% NRG-B bars, how many NRG-A bars should be produced
in June?
a. 500 c. 4690
b. 2010 d. 7000
 

____ 138.   The costs it normally takes to manufacture a product, which is calculated from
historical costs and any changes from that, are known as:
a. Standard costs c. Known costs
b. Abbreviated costs d. Estimated costs
 
  

____ 139.   ____ are disaggregated to generate detailed production schedules.

a. Bills of materials c. Internet sales orders
b. Production runs d. Rough-cut plans
 

____ 140.   What is the production plan for all finished goods?
a. MPS - master production schedule c. PPR - production planning run
b. QQR - quality query run d. RUN - run
 

____ 141.   What process answers the question “What do we need to order to produce the
product, and when do we need to order these raw materials?”
a. SF - sales forecasting c. MRP - materials requirements
planning
b. SOP - sales and operations planning d. DS - detailed scheduling
 

____ 142.   What metric tracks the number of times a supplier meets the agreed upon delivery
date?
a. Initial fill rate c. On-time performance
b. Initial order lead time d. cash-to-cash cycle time
 

____ 143.   In the following diagram, what is A?

a. MRP c. Starting Inventory
b. Sales Forecasting d. Detailed Scheduling
 

____ 144.   In the following figure, what is B?

a. Starting Inventory c. Sales Forecasting
b. Detailed Scheduling d. MRP
 

____ 145.   In the following figure, what is C?

a. Starting Inventory c. MRP
b. Sales Forecasting d. Detailed Scheduling
 

____ 146.   In the following figure, what is D?

a. Starting Inventory c. Sales Forecasting
b. Detailed Scheduling d. MRP
 

____ 147.   What stage of the production planning process splits Fitter Snacker’s monthly
production planning values into finer time periods?
a. Sales Forecasting c. MRP
b. BOM d. Demand Management
 

 
  

test2

 
True/False

Indicate whether the statement is true or false.

__T__  1.   An income statement shows a company's profit or loss in a period.

__F__  2.   When a company has an ERP system it no longer needs a general ledger.

__T__  3.   When a company has an ERP system the general ledger is maintained by the ERP
system.

__F__  4.   The SAP ERP system has a module called Accounting and Finance.

__T__  5.   In SAP ERP access to general ledger accounts is spread over many modules.

__F__  6.   In a manufactured item, the cost of heating the plant would be considered part of the
item's raw materials.

__T__  7.   In a manufactured item, the cost of heating the plant would be considered part of the
item's overhead.

 
 __F__  8.   Using standard costs to accumulate manufacturing costs means that the company
does not have to keep track of actual manufacturing costs.

__T__  9.   Activity based costing is a way of treating overhead costs more like direct costs.

__T__ 10.   Activity based costing means keeping track of instances of activities as well as their
costs.

__T__ 11.   Having ERP will let a company use more cost allocation bases.

__F__ 12.   Having ERP will require a company to restrict the number of cost allocation bases.

__T__ 13.   In an ERP system, data does not flow from one module to another.

__T__ 14.   In SAP ERP an event's "document flow" can be accessed from any SAP ERP screen.

__T__ 15.   SAP ERP's management reporting tools use data in data warehouses.

__F__ 16.   The capability of viewing summary information and then being able to look at details
behind the summary is known as data mining.

__T__ 17.   The US Congress passed the Sarbanes-Oxley Act of 2002 in response to the fraud
and abuse in the Enron collapse.

__F__ 18.   An ERP system could have prevented all fraud at Enron.
  

__F__ 19.   It’s very easy to delete items in the ERP system.

_T___ 20.   User authorizations help prevent fraud and abuse by employees paying fictitious
vendors.

__T__ 21.   Tolerance groups allow for limiting the authority of employees over certain amounts
of transactions.

__T__ 22.   The following is an example of Fitter Snacker’s Balance Sheet.

 
__F__ 23.   The following is an example of Fitter Snacker’s Income Statement.

__F__ 24.   The following is an example of Fitter Snacker’s Balance Sheet.

  

_T___ 25.   The following is an example of Fitter Snacker’s Income Statement.

  

__T__ 26.   Another name for an income statement is a profit and loss statement.

__T__ 27.   In an ERP system, the balance sheet and P&L statements are database reports.

__T__ 28.   Managerial accounting deals with determining the costs and profitability of the
company’s activities.

_T___ 29.   In the SAP ERP system, inputs to the general ledger occur simultaneously with input
of business transactions to the various modules.
  

_T___ 30.   The following SAP screen is an example of document flow.

__F__ 31.   The following screen in SAP is an example of production planning.

 
 __T__ 32.   The key feature of any ERP system is the ability to drill down from a report to the
source documents (transactions) that created it.

__T__ 33.   The tasks associated with managing a company's workforce is now known as human
capital management or HCM.

__F__ 34.   The responsibilities of an HR department include manufacturing of goods and

purchasing raw materials.

__T__ 35.   Hiring costs for an employee can reach as high as $70,000.

__F__ 36.   Sabermetrics is the statistical technique that universities use to accept students into
their college programs.

__F__ 37.   Succession planning should be performed on every employee in the company.

__T__ 38.   Any abstract representation of a process is known as a process model.

_F__  39.   A graphical representation of the movement or flow of concrete or abstract items is a
spreadsheet.

__T__ 40.   The term process mapping is used interchangeably with flowcharting.

__F__ 41.   An assessment of disparities between an organization's current situation and its long-
term goals is known as a swimlane assessment.

 
 __T__ 42.   Process boundaries define which activities are to be included in the process.

__F__ 43.   ERP software such as SAP has many business applications but none of them support
business processes.

__F__ 44.   In flowchart analysis, each activity in the process is analyzed for the value it adds to
the product or service.

__T__ 45.   Dynamic process modeling takes a basic process flowchart and puts it into motion
using computer simulation.

__F__ 46.   Software programs that automate the execution of business processes and address all
aspects of the process are called ERP Wizards.

__F__ 47.   Organizational change management is a trivial part of the implementation process.

__F__ 48.   EDI cannot be performed on the Internet.

__T__ 49.   Internet based procurement includes trade exchanges among companies competing
for the same market.

__F__ 50.   Dynamic pricing is enabling more middlemen to get jobs facilitating buying and
selling of goods on the Internet.

__T__ 51.   To be connected any time from any place to the back-office system can provide a
competitive advantage.

 
 __F__ 52.   A company that provides the management of applications for a company over a
network is called a BOP, a back-office provider.

__T__ 53.   ASPs are experts in delivering IS applications.

__T__ 54.   A portal is a customized Web site that serves as a home base for individual workers.

__F__ 55.   Web services are shops on the Internet where consumers can buy a variety of items.

__F__ 56.   XML is similar to HTML in that it only describes the display of the information on a
web page.

__T__ 57.   An RFID is a small tag that includes a microprocessor and an antenna.

__F__ 58.   The best way for a university to run a large ERP package like SAP for education
purposes only (i.e. teaching in the classroom and labs) would be to run an ASP.

 
Multiple Choice

Identify the choice that best completes the statement or answers the question.

____  59.   Periodically, companies summarize the balances in the books of account. This
process is called: ____.
a. Cost accounting d. Closing the books
b. Account closure e. Statement wrap-up
c. Periodic closure  
 

 
 ____  60.   Assume a company records its transactions in an ERP system. On the shop floor, a
production run has just been finished and the finished goods are transferred to the warehouse for
storage. What would a likely way be to tell the ERP system about this event?
a. The bar codes on the goods are scanned as they enter the warehouse. The data
generated is passed to the ERP database electronically.
b. A Production clerk summarizes the data in an Excel spreadsheet and sends the
spreadsheet to Accounting. An Accounting clerk enters the data from the
spreadsheet into the ERP program's Materials and Production modules.
c. The bar codes on the goods are scanned as they come off the production line. The
data generated is passed to the ERP system's Production module electronically.
Then bar codes on the goods are scanned as they enter the warehouse. The data
generated is passed to the ERP database electronically.
 

____  61.   A specialized database used for data analysis purposes is called a: ____.
a. data warehouse d. document pile
b. drill down store e. data union
c. document flow  
 

____  62.   Which financial statement shows account balances such as, cash held, amounts owed
to the company by customers, the cost of raw materials and finished goods inventory?
a. Income statement c. Tolerance group
b. Balance sheet d. Year end report
 

____  63.   Assume that a buyer calls a seller to order $3,000 worth of goods and her credit limit
is $10,000.  If the sellers accounts receivable is already $8,500, how much of the new order will
be accepted?
a. The entire amount c. No amount
b. $1,500 only d. $10,000 only
 

____  64.   ____ are often allocated based on total machine hours or total labor hours.
a. Direct costs c. Overhead costs
b. Plant costs d. Manmade costs
 

 
 ____  65.   In ____, activities associated with overhead cost generation are identified and then
records are kept on the costs and on the activities.
a. ABC, activity-based costing c. ROTM, run of the mill costing
b. BOC, backoffice costing d. POC, plant operation costing
 

____  66.   Each transaction in SAP ERP gets its own unique number.  This is known as: ____.
a. Uniqueness numbering c. Auditing codes
b. Document flow d. Unique codes
 

____  67.   This is Fitter Snacker’s ____.

a. Balance Sheet c. Credit Report

b. Income Statement d. Document Flow
 

 
 ____  68.   This is Fitter Snacker’s ____.

a. Balance Sheet c. Credit Report

b. Income Statement d. Document Flow
 

____  69.   Another name for an income statement is a ____.

a. Credit c. Sales
b. Profit and Loss d. Revenue
 

____  70.   In an ERP system, the balance sheet and P&L statements are: ____.
a. Generated yearly c. Reports
b. Not available d. Modules
 

 
 ____  71.   What is the advantage to credit management in SAP ERP? 
a. Marketing and Sales get weekly c. Payments are posted daily
reports
b. The data is in real-time d. There is no advantage
 

____  72.   Given that the cost of manufacturing NRG-A bars is $0.72 per bar, how much does
FS need to charge to make a profit of $0.25?
a. $1.00 c. $0.97
b. $0.99 d. $1.25
 

____  73.   For Fitter Snacker, the sum of direct materials, production overhead, and direct labor
is the ____.
a. COGM - cost of goods c. COGP - cost of goods produced
manufactured
b. COGS - cost of goods sold d. COGS - cost of goods shipped
 

____  74.   The following screen in SAP is an example of ____.

a. Production Planning c. Document Flow

b. MRP d. Configuration Settings
 
  

____  75.   The two key pieces of information for a cost analysis is the direct material and the
direct ____.
a. Labor c. Driver
b. Overhead d. Selling cost
 

____  76.   If Fitter Snacker’s cost of making a case of bars is $209.82, and there are 24 bars to a
box and 12 boxes to a case, how much money does it cost Fitter Snacker to make each individual
bar?
a. $17.49 c. $8.74
b. $1.00 d. $0.72
 

____  77.   The tasks associated with managing a company's workforce is now known as ____.
a. Human capital management c. Workforce management
b. Resource management d. Hiring management
 

____  78.   The job of managing salary benefits provided to each employee and confirming that
the proper benefits are disbursed to new and current employees falls under the ____ department.
a. Accounting and Finance c. Individual
b. Human Resources d. Administrative
 

____  79.   To record employee working times, SAP ERP uses ____.
a. Punched cards c. CATS (cross application time sheets)
b. RFIDs d. Multiple databases
 

____  80.   The parts of an employee's pay that is comprised of base pay, bonuses, gratuities,
overtime, sick pay , and vacation allowances are known as ____.
a. Payroll run c. Voluntary deductions
b. Statutory deductions d. Remuneration elements
 

 
____  81.   ____ are skills or abilities associated with a position, while ____ are skills or abilities
associated with a specific employee.
a. Qualifications, requirements c. Duties, tasks
b. Requirements, qualifications d. Tasks, duties
 

____  82.   A plan for replacing key employees is known as a ____.

a. Duty roster c. Succession plan
b. Replacement circular d. Reincarnation study
 

____  83.   SAP's ERP helps the administration of employees taking time off under a government
act that allows compensation for family and medical problems.  This act, passed in 1993, is the
____.
a. FIA c. FMLA
b. QOTA d. PROBA
 

____  84.   Which functional part of the organization communicates changes in salaries, benefits
and policies to employees?
a. Sales and Marketing c. Accounting and Finance
b. Supply Chain Management d. Human Resources
 

____  85.   What is the source of Fitter Snacker’s problems with Human Resources?
a. Inaccurate information c. Inconsistent information
b. Out-of-date information d. All of the above
 

____  86.   What is the name of the group of candidates selected to be interviewed by Fitter
Snacker for a particular position?  For example, assume 20 applicants applied and only 3 were
selected to be interviewed.
a. Short list c. Final Three
b. Select group d. Applicants
 

 
 ____  87.   What does the acronym, CpH stand for?
a. Cost per Health Care Employee c. Cost per Head
b. Cost per Hire d. Cost per Healthy Worker
 

____  88.   In February 2007, a federal appeals court approved class-action status for a
discrimination lawsuit brought by seven women against the retailer, ____.
a. Wal-Mart c. Sears
b. Target d. K-Mart
 

____  89.   The process of determining each employee’s pay is called a ____.
a. Payroll run c. Cash-out
b. Weekly round-up d. Remunerations session
 

____  90.   The SAP ERP system evaluates the input data to payroll and notes any discrepancies
in a(n) ____.
a. Payroll report c. Discrepancy list
b. Error log d. Off-target list
 

____  91.   An outgrowth of the ____ (referenced in Chapter 5) is that companies must account
for the expected costs that occur as a result of long-term incentives such as the exercising of
stock options.
a. Income Statement c. Consolidated statements
b. Balance Sheet d. Sarbanes-Oxley Act
 

____  92.   A graphical representation of a business process is known best as a ____.

a. Subject c. Flowchart
b. Morh d. Dia-process
 

____  93.   When doing process mapping, one of the most important tasks is to define the ____. 
These define which activities are to be included in the process.
a. Scales c. Legends
b. Process boundaries d. Scopes
 

____  94.   Beyond the simple tools of flowcharting, a helpful tool called ____ allows one to
describe a business process in greater or less detail depending on the task at hand.
a. Hierarchical modeling c. Detail focused charting
b. Drill down staging d. Magnifying glass charting
 

____  95.   A deployment flowchart is also known as a ____.

a. Event process chain flowchart c. ERP flowchart
b. Swimlane flowchart d. Best practices flowchart
 

____  96.   In value analysis, which of the following activities should be eliminated?
a. Real value c. No value
b. Business value  
 

____  97.   In value analysis, which of the following activities is defined as value for which the
customer is willing to pay?
a. Real value c. No value
b. Business value  
 

____  98.   Which software program automates the execution of business processes?
a. SAP Wizard c. Workflow
b. ASAP d. Swimlane
 

____  99.   Which of the following is NOT a reason for companies to sell their products via B-to-
C e-commerce?
a. Web transactions allow a company to use data-mining techniques to record and
analyze customer information.
b. E-commerce allows companies to be more efficient and streamline operations.
c. E-commerce provides no incentives for customers to order on-line.
d. Web gives huge markets to companies that are small.
e. All of the above are reason to sell products via e-commerce.
 

____ 100.   What is buying and selling between two companies over the World Wide Web?
a. Bartering-to-Bartering e-commerce
b. Business-to-Consumer e-commerce
c. Business-to-Brokers e-commerce
d. Business-to-Business e-commerce
e. None of the above
 

____ 101.   What is the electronic computer-to-computer transfer of standard business

documents?
a. ESM - Electronic SubMission
b. EDI - Electronic Data Interchange
c. ELE - Electronic Legal Exchange
d. ASP - Asymmetric Systematic Protocol
e. None of the above
 

____ 102.   B-to-B e-commerce features online bidding.  When a company solicits bids for
buying commodity raw materials, this is known as:
a. a bidding war
b. an auction
c. a reverse auction
d. an open auction
e. None of the above
 

____ 103.   When a web order arrives in a company, it is processed through the company's
marketing, manufacturing, shipping, and accounting systems.  These steps are known as:
a. front end processors
b. back office processing
c. web-enabled systems
d. functional areas
e. None of the above
 
  

____ 104.   What is a company that delivers software applications over the Internet?
a. SSP - Safe Software Provider
b. ISP - Internet Service Provider
c. ASP - Application Service Provider
d. SSL - Secure Socket Layer
e. None of the above
 

____ 105.   What is the minimum acceptable rate of return on a project that a company will
accept?
a. running rate
b. recount rate
c. hurdle rate
d. mortgage rate
e. None of the above
 

____ 106.   What is known as the combination of software tools that lets various programs within
an organization communicate with other applications?
a. Web services c. Internet Tie-ins
b. Internet hot links d. Binders
 

____ 107.   What is a customized Web site that serves as a home base from which users navigate
the Web?
a. Home plate c. Home door
b. Portal d. Starter file
 

____ 108.   Which markup language allows for users to define tags?
a. HTML c. XML
b. PPR d. MKL
 

____ 109.   Large fluctuations in the supply chain, caused by changes in selling goods, are
commonly known as the
a. Inventory drying effect c. Empty effect
b. Racet effect d. Bullwhip effect
 

____ 110.   What is the software that Microsoft and SAP have been working on together to let
companies access SAP data via the Microsoft interface.
a. SAP-Excel c. Excel
b. SAP Office d. Duet
 

____ 111.   What is Microsoft’s ERP package?

a. Dynamics c. Excel ERP
b. Office ERP d. MS ERP
 

____ 112.   What does a KPI measure?

a. The state of the organization c. The rate of web sales processing
b. The efficiency of the ERP system d. The manufacturing efficiency