Chapter 2

Introduction to SAP ERP

Multiple Choice Questions

1. Which term relates to the technical capabilities that allow systems to connect with one
another through standardized interfaces called Web services?

a. Enterprise Resource Planning

b. Supply Chain Management
c. Architecture
d. Service-Oriented Architecture
e. None of the above

Answer: d Difficulty: Medium Page Reference: 2

Section: Enterprise Systems Practice: Yes

2. Which term refers to the technical structure of the software, how users interact with the
software, and how the software is physically managed on computer hardware?

a. Architecture
b. Supply Chain Management
c. Enterprise Resource Planning
d. Service Oriented Architecture
e. None of the above

Answer: a Difficulty: Medium Page Reference: 1

Section: Enterprise Systems Practice:

3. Which of the following is used to integrate several client-server applications and create
enterprise mash-ups, or composite applications?

a. Management System
b. Accounting System
c. Enterprise System
d. All of the above
e. Web Services

Answer: e Difficulty: Medium Page Reference: 2

Section: Enterprise Systems Practice: Yes

4. Which system connects a company’s ERP system to those of its customers?

a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)
e. None of the above
 Answer: b Difficulty: Medium Page Reference: 4
Section: Enterprise Systems Practice:

5. Which of the following systems helps companies administer the processes of research,
design, and product management?

a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)
e. None of the above

Answer: d Difficulty: Medium Page Reference: 4

Section: Enterprise Systems Practice:

6. Which program is the “operating system” for an entire company’s business processes?

a. Microsoft Vista
b. Linux
c. SAP NetWeaver
d. SAP Prolific
e. None of the above

Answer: c Difficulty: Medium Page Reference: 5

Section: Application Platforms Practice:

7. The highest organizational level in SAP ERP is the

a. Vendor
b. Client
c. Material Master
d. Plant
e. None of the above

Answer: b Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

8. Which of the following is(are) used to represent the structure of an enterprise?

a. Organizational Data
b. Project Management
c. Client
d. Plant
e. Lifecycle Data Management

Answer: a Difficulty: Easy Page Reference: 6

Section: Data in an Enterprise System – Organizational Data Practice:
 9. Which of the following terms refers to an organizational element that performs multiple
functions and is relevant to several processes?

a. Warehouse
b. Procurement
c. Plant
d. Fulfillment
e. Lifecycle Data Management

Answer: c Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice: Yes

10. How many company codes can a plant belong to?

a. One
b. Two
c. Three
d. Any Number

Answer: a Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:

11. Which of the following master data is used in numerous processes?

a. Material Master
b. Plant
c. Company Code
d. Customer Master
e. Vendor Master

Answer: a Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:

12. Materials that are created by the production process from other materials are referred to as
_____________

a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials
e. None of the above

Answer: a Difficulty: Medium Page Reference: 10

Section: Data in an Enterprise System – Master Data Practice:

13. What type of materials is purchased from a vendor?

 a. Trading Goods
b. Finished Goods (FERT)
c. Semi-finished Goods (HALB)
d. Material Types
e. None of the above

Answer: a Difficulty: Difficult Page Reference: 10

Section: Data in an Enterprise System – Master Data Practice:

14. Materials that are purchased from an external source (a vendor) and used in the
production process are known as ______________

a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials
e. None of the above

Answer: d Difficulty: Easy Page Reference: 10

Section: Data in an Enterprise System – Master Data Practice:

15. Which of the following terms refers to materials with similar characteristics?

a. Material Master
b. Material Group
c. Transaction Data
d. Material number
e. None of the above

Answer: b Difficulty: Easy Page Reference: 11

Section: Data in an Enterprise System – Master Data Practice:

16. ____________reflect(s) the consequences of executing process steps.

a. Material Groups
b. Organizational Data
c. Transaction Data
d. Project Management
e. None of the above

Answer: c Difficulty: Medium Page Reference: 12

Section: Data in an Enterprise System – Transaction Data Practice:

17. Financial accounting (FI) documents, management accounting or controlling (CO)

documents, and material documents are referred to as
 a. Transaction Documents
b. Transaction Data
c. Material Group
d. Virtual Documents
e. None of the above

Answer: d Difficulty: Difficult Page Reference: 13

Section: Data in an Enterprise System – Transaction Data Practice:

18. Which term is generally used to describe the ways that users can view and analyze data to
help them make decisions and complete their tasks?

a. Reporting
b. Evaluating
c. Characteristics
d. Period Definition
e. Online Analytic Processing (OLAP)

Answer: a Difficulty: Easy Page Reference: 14

Section: Data in an Enterprise System – Reporting Practice: Yes

19. Which of the following is(are) used to capture specified transaction data in an aggregated and
summarized form that enables users to analyze the data as needed.

a. Reporting
b. Evaluating
c. Information Structures
d. Period Definition
e. Online Analytic Processing (OLAP)

Answer: c Difficulty: Medium Page Reference: 15

Section: Data in an Enterprise System – Reporting Practice: Yes

20. Which of the following identify tasks that are scheduled to be completed in a process?

a. Online Lists
b. Parameters
c. Information Structures
d. Work Lists
e. Period definitions

Answer: d Difficulty: Medium Page Reference: 16

Section: Reporting – Work Lists Practice:
Multiple Answer Questions
1. A three-tier architecture includes which of the following components?

f. Operating system layer

g. Data layer
h. Presentation layer
i. Application layer
j. Network layer

Answer: b, c, d Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice: Yes

2. Which of the following statements concerning Web services are true?

a. Web services expose functionality to other applications.

b. One Web service can be used to execute multiple steps in a process.
c. Web services have standard interfaces for input and output.
d. Web services are an essential component of enterprise systems.
e. Web services can be used to create composite applications.

Answer: a, d, e Difficulty: Difficult Page Reference: 2

Section: Enterprise Systems – Client-Server Architecture Practice:

3. Which of the following SAP systems are used to support inter-company processes? (2 correct
answers)

f. SAP ERP
g. SAP SCM
h. SAP CRM
i. SAP BI
j. SAP Netweaver

Answer: b, c Difficulty: Medium Page Reference: 4

Section: Enterprise Systems Practice:

4. Which of the following SAP systems are used to support inter-company processes?

f. SAP SCM
g. SAP CRM
h. Production planning (PP) module
i. Materials management (MM) module
j. Strategic enterprise management (SEM) module

Answer: a, b Difficulty: Medium Page Reference: 4

Section: Enterprise Systems Practice: Yes
5. Which of the following statements regarding organizational data are true?

a. Organizational data represent entities such as customers and vendors.

b. Organizational data define the structure of an enterprise.
c. Organizational data are a consequence of the execution of process steps.
d. Organizational data are constantly changing.
e. Organizational data change infrequently.

Answer: a, b Difficulty: Medium Page Reference: 6

Section: Data in an Enterprise System – Organizational Data Practice:

6. Which of the following statements regarding master data are true?

a. Master data represent entities such as customers and vendors.

b. Master data define the structure of an enterprise.
c. Master data are a consequence of the execution of process steps.
d. Master data are constantly changing.
e. Master data change infrequently.

Answer: a, c Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise Systems – Master Data Practice:

7. Which of the following statements concerning transaction data are true?

a. Transaction data represent entities such as customers and vendors.

b. Transaction data define the structure of an enterprise.
c. Transaction data are a consequence of the execution of process steps.
d. Transaction data are constantly changing.
e. Transaction data change infrequently.

Answer: c, d Difficulty: Medium Page Reference: 12

Section: Enterprise Systems – Transaction Data Practice: Yes

8. Which of the following are examples of organizational data in SAP?

a. Client
b. Customer
c. Purchasing Organization
d. Vendor
e. Plant

Answer: a, b, d Difficulty: Medium Page Reference: 6

Section: Data in an Enterprise System – Organizational Data Practice:

9. Which of the following are examples of master data in SAP?

a. Client
 b. Customer
c. Purchasing Organization
d. Vendor
e. Plant

Answer: b, d Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:

10. A plant can be used to represent which of the following?

a. A factory
b. A storage facility (warehouse, DC)
c. An office
d. A legal entity
e. A company vehicle

Answer: a, b, c Difficulty: Easy Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:

11. Material master data are grouped based on:

a. Process
b. Material type
c. Company Code
d. Organizational Element
e. Key segments

Answer: b, c, d Difficulty: Medium Page Reference: 9

Section: Data in an Enterprise System – Master Data Practice:

12. Which of the following statements regarding instance level reporting are true?

a. It provides the status of one occurrence of a process (e.g., one customer order).
b. It provides information on the performance of a process across many occurrences
(e.g., customer orders over time).
c. It is based on data in the transactional system.
d. It is based on data in the informational system.
e. It uses aggregated data.

Answer: a, c Difficulty: Medium Page Reference: 15

Section: Reporting Practice:

13. Which of the following statements regarding process level reporting are true?

a. It provides the status of one occurrence of a process (e.g., one customer order).
 b. It provides information on the performance of a process across many occurrences
(e.g., customer orders over time).
c. It is based on data in the transactional system.
d. It is based on data in the informational system.
e. It uses aggregated data.

Answer: b, c, e Difficulty: Difficult Page Reference: 15

Section: Reporting Practice:

14. Which of the following are examples of online lists?

a. Picking list
b. Billing due list
c. List of customers
d. Delivery due list
e. List of documents

Answer: c, e Difficulty: Medium Page Reference: 17

Section: Reporting - Online Lists Practice:

15. Which of the following are examples of work lists?

a. Picking list
b. Billing due list
c. List of customers
d. Delivery due list
e. List of documents

Answer: a, b, d Difficulty: Medium Page Reference: 16

Section: Reporting - Work Lists Practice:

16. Supply chain management deals with

a. Managing relationships with suppliers

b. Planning for production demand requirements
c. Optimizing transportation and logistics for materials
d. Providing data to help manage sales

Answer: b, c Difficulty: Medium Page Reference: 4

Section: Enterprise Systems – Enterprise Resource Planning System Practice: Yes

17. Which of the following statements concerning SAP NetWeaver are true?

a. It deals exclusively with processes that are executed within a company.

b. It helps companies integrate with other non-SAP applications.
 c. It serves as the application platform on which the SAP Business Suite runs.
d. It enables companies to plug in independent software vendor (ISV) applications on
top of their core ERP and suite applications.

Answer: b, c, d Difficulty: Medium Page Reference: 5

Section: Enterprise Systems – Application Platform Practice:

18. Plant is an organizational element where

a. Financial accounting takes place

b. Products and services are created
c. Production planning is carried out
d. Services and maintenance is performed

Answer: b, c, d Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise Systems – Organizational data Practice:

19. Transaction data make use of which types of data?

a. Master
b. Organizational
c. Situational
d. None of the above

Answer: a, b, c Difficulty: Medium Page Reference: 12

Section: Data in an Enterprise Systems – Transaction data Practice:

20. Information structures enable which types of analysis?

a. Standard analysis
b. Flexible analysis
c. Rigid analysis
d. All of the above

Answer: a, b Difficulty: Medium Page Reference:19

Section: Reporting – Information Systems Practice:

True-False Questions
1. The architecture of an enterprise system refers to the technical structure of the software, how
users interact with the software, and how the software is physically managed on computer
hardware.

Answer: True Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

2. The three layers of the “three-tier client-server architecture” are the presentation layer,
 windows layer, and data layer.

Answer: False Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

3. When you access the Internet, your browser is the presentation layer.

Answer: True Difficulty: Medium Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

4. Scalability is the ability of the hardware and software to support a greater number of users
easily over time.

Answer: True Difficulty: Easy Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

5. Service-oriented architecture (SOA) is the fundamental concept behind systems connecting

through standardized interfaces called Web services.

Answer: True Difficulty: Difficult Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems Practice:

6. Enterprise resource planning (ERP) focuses on the internal operations of an organization.

Answer: True Difficulty: Medium Page Reference: 3

Section: Enterprise Planning Systems Practice:

7. Inter-company processes take place within a single company.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems Practice:

8. Customer relationship management (CRM) systems connect a company’s ERP system to its
accounting software system.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems Practice:

9. Supply chain management (SCM) systems help companies execute the processes of research,
design, and product management.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems Practice:

10. Application platforms serve as a type of "enterprise operating system" for a company’s ES
landscape by allowing all of the various systems to communicate seamlessly with one
another as well as with systems outside the company.

Answer: True Difficulty: Medium Page Reference: 5

Section: Application Platforms Practice:
11. Current versions of the SAP business suite can’t run on SAP NetWeaver.

Answer: False Difficulty: Easy Page Reference: 6

Section: Application Platforms Practice:

12. SAP NetWeaver is the “operating system” for an entire company’s business processes.

Answer: True Difficulty: Medium Page Reference: 6

Section: Application Platforms Practice:

13. Organizational data are used to represent the structure of an enterprise.

Answer: True Difficulty: Easy Page Reference: 6

Section: Data in an Enterprise System – Organizational Data Practice:

14. A company code is the highest organizational level in SAP ERP.

Answer: False Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

15. A client represents each company within an enterprise.

Answer: False Difficulty: Easy Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

16. Material master are organizational elements that performs multiple functions and is relevant
to several processes.

Answer: False Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data Practice:

17. A building can house only a single plant.

Answer: False Difficulty: Difficult Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:

18. A plant can be a factory, a warehouse, a regional distribution center, or a service center.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Organizational Data Practice:

19. The material master is the most commonly used organizational data in an enterprise.

Answer: False Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:

20. The material master includes a large amount of data because it is used in numerous
processes.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data Practice:
21. Materials are categorized into different material types based on the way they are used in the
firm’s operations.

Answer: True Difficulty: Medium Page Reference: 9

Section: Material Types Practice:

22. The four most common material types are raw materials, semi‐finished goods, finished
goods, and exported goods.

Answer: False Difficulty: Difficult Page Reference: 9

Section: Material Types Practice:

23. Raw materials (ROH) are purchased from an external source ‐ a vendor‐ and used in the
production process.

Answer: True Difficulty: Easy Page Reference: 10

Section: Material Types Practice:

24. Trading goods (HAWA) are resold to customers after they have been modified by the
company.

Answer: False Difficulty: Medium Page Reference: 10

Section: Material Types Practice:

25. Transaction data reflect the consequences of executing process steps.

Answer: True Difficulty: Medium Page Reference: 12

Section: Enterprise Systems – Transaction Data Practice:

26. The financial accounting documents, management accounting or controlling documents, and
material documents are all “virtual.”

Answer: True Difficulty: Medium Page Reference: 13

Section: Enterprise Systems – Transaction Data Practice:

27. Reporting is a general term for the methods a user can utilize to update data in the ERP
system to execute process steps.

Answer: False Difficulty: Medium Page Reference: 14

Section: Reporting Practice:

28. The online transaction processing (OLTP) system is designed to capture and store detailed
organizational data.

Answer: False Difficulty: Medium Page Reference: 15

Section: Reporting Practice:

29. Work lists identify tasks that are scheduled to be completed in a process.

Answer: True Difficulty: Medium Page Reference: 16

 Section: Reporting – Work Lists Practice:

30. Information structures display lists of master data, such as materials, vendors, and purchasing
info records, and documents, such as transaction documents, FI, CO, and material documents
that are generated during the execution of a process.

Answer: False Difficulty: Medium Page Reference: 17

Section: Reporting – Online Lists Practice: