Astha School of Management

2nd Semester

Sub: FUNDAMENTALS OF IT & ERP (18MBA207)

Module –lll (Mcqs)

1. Which of the following describes an ERP system?

A) ERP systems provide a foundation for collaboration between departments

B) ERP systems enable people in different business areas to communicate

C) ERP systems have been widely adopted in large organisations to store critical knowledge
used to make the decisions that drive the organisation's performance

D) All of the above

Answer: D

2. What is at the heart of any ERP system?

A) Information

B) Employees

C) Customers

D) Database

Answer: D

3. What must a system do to qualify as a true ERP solution?

A) Be flexible

B) Be modular and closed

C) Extend within the company

D) All of the above

Answer: A Level: Medium

4. Which of the following is a reason for ERPs explosive growth?

A) ERP is a logical solution to the mess of incompatible applications

B) ERP addresses the need for global information sharing and reporting

C) ERP is used to avoid the pain and expense of fixing legacy systems

D) All of the above

Answer: D

5. Which of the following occurs when everyone involved in sourcing, producing, and
delivering the company's product works with the same information?

A) Eliminates redundancies

B) Cuts down wasted time

C) Removes misinformation

D) All of the above

Answer: D

6. What are several different types of software, which sit in the middle of and provide
connectivity between two or more software applications?

A) Middleware

B) Enterprise application integration middleware

C) Automated business process

D) e-business infrastructure

Answer: A

7. What represents a new approach to middleware by packaging together commonly used

functionality, such as providing prebuilt links to popular enterprise applications, which reduces
the time necessary to develop solutions that integrate applications from multiple vendors?

A) Middleware

B) Enterprise application integration middleware

C) Automated business process

D) e-business infrastructure

Answer: B
8. Who are the primary users of SCM systems?

A) Sales, marketing, customer service

B) Accounting, finance, logistics, and production

C) Customers, resellers, partners, suppliers, and distributors

D) All of the above

Answer: C

9. What are the primary business benefits of an ERP system?

A) Sales forecasts, sales strategies, and marketing campaigns

B) Market demand, resource and capacity constraints, and real-time scheduling

C) Forecasting, planning, purchasing, material management, warehousing, inventory, and

distribution

D) All of the above

Answer: C

10. Who are the primary users of ERP systems?

A) Sales, marketing, customer service

B) Accounting, finance, logistics, and production

C) Customers, resellers, partners, suppliers, and distributors

D) All of the above

Answer: B

11. A bill of materials lists the

A. times needed to perform all phases of production

B. production schedules for all products

C. components, ingredients, and materials required to produce an item

D. operations required to produce an item

Ans: C
12. Which of the following statements best compares modular bills and phantom bills?

A. Both pertain to assemblies that are not inventoried.

B. There is no difference between the two.

C. Both pertain to assemblies that are inventoried.

D. Modular bills represent subassemblies that actually exist and are inventoried, while phantom

bills represent subassemblies that exist only temporarily and are not inventoried.

Ans: D

13. The _________ should plan well and execute perfectly the implementation of ERP.

a. Organisation
b. System developers
c. Vendors
d. Top Management

Ans: b

14. Which is one of the most critical steps in the ERP implementation?

a. Creation of Organisational Model

b. Creation of Integrated Data Model
c. Creation of Business Model
d. Creation of Data Model
Ans: b
15. What is one of the key resources of every organisation, in today’s competitive business
environment?

a. Employee
b. Information
c. ERP
d. Database
Ans: b

16. When a customer needs to check the performance of the company before he places an
order, which department has to be in a position to provide the necessary information?

a. Production
b. Quality
c. Marketing
d. Finance
Ans: c
17. In an integrated data model, what gives a snapshot of the organisation at any given time?

a. ERP
b. Database
c. Management
d. MIS
Ans: b

18. Data mining is the process of identifying valid, new, potentially useful, and ultimately clear
______________ from databases.

a.  Decision
b.  Strategies
c.  Information
d.  Account

Ans: c

19. EIS stands for:

a.  Executive Interaction System

b.  Executive Interconnecting Systems
c.  Executive Information Systems
d.  Executive Instrumental Systems
Ans: c

20. DSS is quite _______________ and is available on request.

a.  Structured
b.  Non-structured
c.  Semi-structured
d.  Unstructured
Ans: d

21. ERP system is built on a ____________ utilising a common computing platform

a.    Centralised database
b.    Individual databases
c.   Modular databases
d.    Centralised layout
Ans: a

22. Which of the following is an example for commercial ERP

a.  ERP5
b.  Microsoft Dynamics AX
c.  Compiere
d.  Fisterra
Ans: b
23. NPV is the abbreviation of
a.  Net Present Variation method
b.  Net Present Value method
c.  Neutral Present Value method
d.  Net Preventive Value method
Ans: c

24. ERP vendors usually design their systems around standard business processes, based upon
____________________
a.  Business standards
b.  Global standards
c.  Best business practices.
d.  Best profitable standards
Ans: c

25. The _______ module's internal functions do not directly interact with the data or processes of
other modules.
a.  Finance
b.  Quality Management
c.  Sales and Distribution
d.  Plant Maintenance
Ans:b

26. Which system provides the foundation for creating concurrent business processes across the
supply chain and achieving Return on Assets (ROA) improvement?
a.  Finance
b.  Inventory
c.  Manufacturing
d.  Sales
Ans:c

27. The processes described in the quality manual can be implemented and automated in the EDP
system. Here what does EDP stand for?
a.  Electronic Data Processing
b.  Electronic Dictionary Project
c.  Electrical Data Processing
d.  Employee Development Plan
Ans:a

28. What is the key to MRP?

a.    Quantity of requirements for components are based upon the structure of the Bill of Material.
b.    Production of requirements for components are based upon the structure of the Bill of
Material.
c.    Time-phasing of requirements for components are based upon the structure of the Bill of
Material.
d.    Capacity of requirements for components are based upon the structure of the Bill of
Material.
Ans: c

29. During the 80s, tools were developed to assist the planning of:
a.  Production levels
b.  Priority planning system
c.  Capacity requirements
d.  Planning functions
Ans:a

30. Complete the sentence: MRP-II systems provide…

a.    Information that is useful to all functional areas and encourage cross-functional interaction.
b.  Information with cost data.
c.  Information that can be used for other company functions.
d.  Accurate inventory information.
Ans:b

31. ERP is restricted to being a _________operations system in the country.

a.     Finance
b.     Budgeting modules
c.     Manufacturing
d.     Transaction-oriented
Ans:d

32. ________________ allow companies to enter requirements for various types of items.

a.  Purchase order
b.  Purchase requisitions
c.  Invoice
d.  General ledger
Ans:b

33. _________ module supports the entire sales and purchase processes from start to finish.
a.  Order management
b.  Sales management
c.  Purchase management
d.  Master Data Management
Ans: a

34. ___________evaluates whether or not customer contract agreement are being met.

a.  Purchase order management
b.  Sales order management
c.  Master data management
d.  Warehouse management
Ans:d

35. ____________ maintains reports of warehouse supplies.

a.  ERP financial module
b.ERP Inventory software module
c.  ERP Resource module
d.  ERP verification module
Ans: b
36. Installing ERP Inventory systems is  ____________ .

a.  Simple

b.  Trouble free

c.  Complex

d.  Cost effective
Ans: c

37. In recent years, CRM has become a primary component of:

a.    ERP vendors

b.  ERP software solutions.

c.  CRM software

d.  CRM solutions

Ans: b

38. ____________ system maintains employees information in graphical format.

a.  Employee master data

b.  Personnel administration

c.  Payroll accounting

d.  Benefits administration

Ans: a

39. As processes become more automated and efficient,

a.  It is best to treat ERP as an investment as well as a cost-cutting measure.

b.  It is not best to treat ERP as an investment as well as a cost-cutting measure.

c.  It is best to treat ERP as an disinvestment as well as a cost-cutting measure.

d.  It is best to treat ERP as an investment but not as a cost-cutting measure.

Ans: d

40. Which of the following has the least integration of information systems?

a. Web-integrated enterprise resource planning

b. Enterprise resource planning
c. Materials requirements planning
d. Manufacturing resource planning

Ans: c

41. Which of the following is an output of materials requirements planning?

a. Work orders
b. Master production schedule
c. Bills of materials
d. All of the above

Ans: a

42. What ERP modules can help companies through a product's life cycle, from development to
production?

a. ERP financials
b. ERP manufacturing
c. ERP human resources
d. ERP procurement
Ans: b

43. The _______stage of the Supply Chain Council's Reference Model, includes everything from
receiving a customer inquiry to invoicing the customer.

a. Product delivery
b. Sourcing
c. Production
d. Planning
Ans: a
 44. The processes required for a company, or network of companies, to bring a product
from concept to the customer are called:

a. supply chains.
b. procurement chains.
c. delivery chains.
d. distribution chains.

Ans: a

45. ________ systems are specifically designed to help companies manage all of their
functions that deal with customers -- from marketing and sales to returns.
a. ERM
b. SCM
c. TPS
d. CRM

Ans: d
46. Which of the following is not a supply chain requirement?
a. Planning
b. Marketing
c. Sales force automation
d. Returns
Ans: b

47. _______ is the last phase in ERP implementation life cycle.

A. Testing.
B. End user training.
C. Post implementation.
D. Going live.
ANS: C
48. Project planning phase is ________________________ in ERP implementation.

A. first phase.
B. third phase.
C. fifth phase.
D. seventh phase.

ANS: B

49. Which process makes the decision makers to get accurate information, in which format they
want?

A. Decision making.
B. Planning.
C. Design.
 D. Testing.
ANS: A

50. An ERP implementation involves ______________________ changes.

A. process.
B. technological.
C. cultural.
D. both technological and cultural.
ANS: D

51. Who is the head in ERP implementation team?

A. Project management.
B. Executive committee.
C. Work team.
D. Technical support team.
ANS: B
52. ______ provides planning, scheduling and control of facilities and equipment..
A. HR module
B. Plant maintenance control.
C. Sales and distribution.
D. Finance.
ANS: B

53. Which team arranges meetings and documentation during ERP implementation?
A. Work team.
B. Administrative support team.
C. Project management.
D. Technical support team.
ANS: B

54. _________ are the people who have developed the ERP packages.
A. Consultants.
B. End users.
C. Administrative team.
D. Vendors.
ANS: D

55. Before the implementation _____ should sit together and prepare a work plan.
A. vendor and consultant.
B. consultant and management.
C. vendor and management.
D. consultant and company representative.
ANS: D