Test

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. Shippingb. Supply Chain Management d. Baking

____  73.   Which business function is performed by Accounting and Finance?a. Cost allocation and control c. Benefitsb. 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 systemsb. 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 Resourcesb. Supply Chain Management e. All of the abovec. 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 systemsb. 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 divingb. 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 costb. 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 complianceb. 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 Managementb. Accounting and Finance d. Human Resources

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

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

____  83.   ____ results in management over investing in extra raw materialsa. Bulging raw materials c. Safety stockb. Stockup d. Excess baggage

____  84.   Which of the following is an input to HR?a. Personnel forecasts c. Layoff and recall company policyb. 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. 1980sb. 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. Doubletingb. 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. Scalabilityb. Middleware d. Computability

____  88.   In the 1980s, ____, the technology that holds data in an organized fashion, existed for ERP development.

a. Spreadsheets c. Client/Serverb. 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. MRPb. EDI d. EFT

____  90.   The direct computer-to-computer exchange of standard business documents is known as:

a. MRP c. EDIb. 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. Modulesb. 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 piecesb. Clip-ons d. Piecemeal nodes

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

____  94.   ____ is SAP’s biggest competitor.a. J.D. Edwards c. Microsoftb. PeopleSoft d. Oracle

____  95.   Which R/3 module records sales orders?a. SD c. PPb. MM d. QM

____  96.   Which R/3 module records transactions in the general ledger?a. CO c. FIb. 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. Optionalb. Configuration d. Tandem

____  98.   Which of the following is a benefit to running an ERP system?a. Global integrationb. Elimination of updating and repairing multiple systems

c. Capability to manage operations, not just monitor themd. 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 billionb. $1-5 million d. $50,000-$500,000

____ 100.   SAP’s internal programming language is called:a. R/3 c. Visual Basicb. C++ d. ABAP

____ 101.   One assessment of a project’s value is calculated by the:a. DVT c. ROIb. PMT d. PPT

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

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

____ 104.   ____ is the conducting of business over the Internet.a. R/3 c. E-Commerceb. 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. Configurationb. Switch d. Programming

____ 106.   Individual information systems for each functional area in a company are known asa. Silos c. Tubersb. 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 Dynamicsb. PeopleSoft d. J.D. Edwards

____ 108.   Which of the following modules in SAP ERP maintains production information.a. SD c. PPb. 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 Accountingb. Controlling d. Project System

____ 110.   What are software that enables systems to exchange data without complicated software links?

a. ABAP modules c. Legacy systemsb. Web Services d. Best practices

____ 111.   In SAP ERP the electronic evidence of a transaction is called a ____.a. trail d. audit numberb. marker e. documentc. 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 Billingb. Sales Order Processing e. Paymentc. 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 Billingb. Sales Order Processing e. Paymentc. 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 Billingb. Sales Order Processing e. Paymentc. 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 Billingb. Sales Order Processing e. Paymentc. 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 Billingb. Sales Order Processing e. Paymentc. 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 Datab. Transaction index e. Sales Master Datac. 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 Softwareb. Open Relationship Softwarec. Denouement Softwared. Customer Relationship Management Softwaree. 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 Numberb. 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 Techniqueb. Price Fixing d. Fluctuation

____ 121.   The ____ system communicates with SAP ERP, BW, and APO systems in developing and executing its plans.

a. PPO c. CRMb. 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 marketingb. 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 flowsb. 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. Internetb. On-demand d. ERP

____ 125.   Which of the following are benefits to CRM?a. Lower costsb. Higher revenuec. Improved strategy and performance measurementd. All of the above

____ 126.   A make-to-stock production system is one where: a. Items are made for inventory in anticipation of sales ordersb. Items are produced to fill specific customer ordersc. Items are assembled for a specific customer order from an inventory of

componentsd. Both a and c

____ 127.   An unexpected increase in product demand can lead to:a. A depletion of finished goods inventoriesb. A depletion of raw materials inventoriesc. Increased overtime and transportation expensesd. Both a and be. 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. 6,935b. 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. 9,582b. 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. 9,582b. 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. 940b. 752 d. 1034

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

 Oats         Lead Time = 2 weeks

Week 1 Week 2 Week 3 Week 4 Week 5

Gross Requirements (lb) 18,000 24,323 24,872 18,464 17,938Scheduled Receipts

    44,000      

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 2b. An order for 44,000 units in Period 3c. An order for 44,000 units for periods 2 and 3d. 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. 8,038b. 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 unaffectedd. 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, MRPb. Sales Forecasting, Demand Planning, Demand Management, MRPc. Sales and Operations Planning, Sales Forecasting, MRP, Demand Managementd. 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. 4690b. 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 costsb. Abbreviated costs d. Estimated costs

____ 139.   ____ are disaggregated to generate detailed production schedules.a. Bills of materials c. Internet sales ordersb. 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 runb. 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 performanceb. Initial order lead time d. cash-to-cash cycle time

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

a. MRP c. Starting Inventoryb. Sales Forecasting d. Detailed Scheduling

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

a. Starting Inventory c. Sales Forecastingb. Detailed Scheduling d. MRP

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

a. Starting Inventory c. MRPb. Sales Forecasting d. Detailed Scheduling

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

a. Starting Inventory c. Sales Forecastingb. 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. MRPb. 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 booksb. Account closure e. Statement wrap-upc. 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 pileb. drill down store e. data unionc. 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 groupb. 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 amountb. $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 costsb. 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 costingb. 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 codesb. Document flow d. Unique codes

____  67.   This is Fitter Snacker’s ____.

a. Balance Sheet c. Credit Reportb. Income Statement d. Document Flow

____  68.   This is Fitter Snacker’s ____.

a. Balance Sheet c. Credit Reportb. Income Statement d. Document Flow

____  69.   Another name for an income statement is a ____. a. Credit c. Salesb. Profit and Loss d. Revenue

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

____  71.   What is the advantage to credit management in SAP ERP?  a. Marketing and Sales get weekly

reportsc. Payments are posted daily

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. $0.97b. $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 manufactured

c. COGP - cost of goods produced

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 Flowb. 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. Driverb. 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. $8.74b. $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 managementb. 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. Individualb. 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 deductionsb. 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, tasksb. Requirements, qualifications d. Tasks, duties

____  82.   A plan for replacing key employees is known as a ____. a. Duty roster c. Succession planb. 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. FMLAb. 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 Financeb. Supply Chain Management d. Human Resources

____  85.   What is the source of Fitter Snacker’s problems with Human Resources?a. Inaccurate information c. Inconsistent informationb. 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 Threeb. Select group d. Applicants

____  87.   What does the acronym, CpH stand for?a. Cost per Health Care Employee c. Cost per Headb. 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. Searsb. Target d. K-Mart

____  89.   The process of determining each employee’s pay is called a ____.a. Payroll run c. Cash-outb. 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 listb. 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 statementsb. Balance Sheet d. Sarbanes-Oxley Act

____  92.   A graphical representation of a business process is known best as a ____. a. Subject c. Flowchartb. 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. Legendsb. 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 chartingb. Drill down staging d. Magnifying glass charting

____  95.   A deployment flowchart is also known as a ____.a. Event process chain flowchart c. ERP flowchartb. Swimlane flowchart d. Best practices flowchart

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

____  98.   Which software program automates the execution of business processes?a. SAP Wizard c. Workflowb. 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-commerceb. Business-to-Consumer e-commercec. Business-to-Brokers e-commerced. Business-to-Business e-commercee. None of the above

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

a. ESM - Electronic SubMissionb. EDI - Electronic Data Interchangec. ELE - Electronic Legal Exchanged. ASP - Asymmetric Systematic Protocole. 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 warb. an auctionc. a reverse auctiond. an open auctione. 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 processorsb. back office processingc. web-enabled systemsd. functional arease. None of the above

____ 104.   What is a company that delivers software applications over the Internet?a. SSP - Safe Software Providerb. ISP - Internet Service Providerc. ASP - Application Service Providerd. SSL - Secure Socket Layere. None of the above

____ 105.   What is the minimum acceptable rate of return on a project that a company will accept?

a. running rateb. recount ratec. hurdle rated. mortgage ratee. 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-insb. 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 doorb. Portal d. Starter file

____ 108.   Which markup language allows for users to define tags?a. HTML c. XMLb. 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 effectb. 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. Excelb. SAP Office d. Duet

____ 111.   What is Microsoft’s ERP package?a. Dynamics c. Excel ERPb. Office ERP d. MS ERP

____ 112.   What does a KPI measure?a. The state of the organization c. The rate of web sales processingb. The efficiency of the ERP system d. The manufacturing efficiency