Information Systems in Organizations 1st Edition Patricia Wallace Test Bank 1

Information Systems in Organizations 1st
Edition Wallace 0136115624 9780136115625

Download full solution manual at:
https://testbankpack.com/p/solution-manual-for-information-systems-in-
organizations-1st-edition-wallace-0136115624-9780136115625/
Download full test bank at:

https://testbankpack.com/p/test-bank-for-information-systems-in-
organizations-1st-edition-wallace-0136115624-9780136115625/
Information Systems in Organizations (Wallace)

Chapter 5 Information Systems for the Enterprise
1) Nonprofits need additional modules for their financial systems to track and manage grants and
gifts from foundations or individuals.
Answer: TRUE
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
Course LO: Describe the uses of enterprise systems and enterprise resource planning
2) In China, different accounting standards have been used to judge the value of companies that
were formed as a result of mergers between state-controlled and privately-held enterprises.
Answer: TRUE
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
3) Visualization and charting tools are never used in talent management.

Answer: FALSE
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
4) Human capital management systems avoid using social networking due to the unregulated
nature of the media.
Answer: FALSE
1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Page Ref: 149
Chapter LO: 2
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
5) Corporate responsibility affects a company's decisions regarding sources and suppliers.

Answer: TRUE
Page Ref: 151
Chapter LO: 3
Difficulty: Easy
Course LO: Discuss the role of information systems in supply chain management and
performance
2
6) To convince customers to purchase shoes, an online shoe retailer would design a user-friendly
return process.
Answer: TRUE
Page Ref: 152
Chapter LO: 3
Difficulty: Moderate
performance
7) A courier service provider allows customers to track the exact location and date of delivery of
their shipment. This improves the demand forecast accuracy of the company.
Answer: FALSE
Page Ref: 152
Chapter LO: 3
performance
8) Identifying high-cost points along the supply chain is the first step to reducing operational
costs.
Answer: TRUE
Page Ref: 153
Chapter LO: 3
Difficulty: Easy
performance
9) Long supply chains are less susceptible to disruption than short supply chains.
Answer: FALSE
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
10) Supply chain management software evolved as general tools and applications, which offered
comprehensive financial, supply chain, and human resource management suites.
Answer: FALSE
Page Ref: 155
Chapter LO: 3
performance
3
11) Companies have replaced sharing information through electronic markets with electronic
data interchange.
Answer: FALSE
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
12) Collaborative systems can emerge through sheer power, when one dominant partner
demands to share information with smaller players.
Answer: TRUE
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
13) Attracting new customers is often more difficult and expensive than retaining existing ones.
Answer: TRUE
Page Ref: 159
Chapter LO: 4
Difficulty: Easy
Course LO: Describe the functions of customer relationship management (CRM) systems
14) A company whose auto insurance division keeps separate records from its life insurance
division will find it easier to build a well-rounded relationship with its customers.
Answer: FALSE
Page Ref: 160
Chapter LO: 4
Difficulty: Easy
15) Marketers treasure customer relationship management applications, drawing on them to

manage marketing campaigns, loyalty programs, and customized e-mail programs.
Answer: TRUE
Page Ref: 161
Chapter LO: 4
Difficulty: Easy
16) Spammers use a "web beacons" approach routinely to verify that e-mail addresses are valid.
Answer: TRUE
Page Ref: 162
Chapter LO: 4
Difficulty: Easy
4
17) IBM hosts dozens of communities for developers who use their software tools. This is a
customer relationship management strategy.
Answer: TRUE
Page Ref: 163
Chapter LO: 4
18) Tulsa University implemented an ERP for finances and human resources and built a separate
student information system to match its specific requirements. This is an example of an
engineered suite.
Answer: FALSE
Page Ref: 167
AACSB: Analytic skills
Chapter LO: 5
19) Implementing ERPs very often results in dismal success rates and runaway costs.
Answer: TRUE
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
20) SaaS ERP solutions are "instant on" products, which require minimal training and
reengineering of workflows compared to on-premise versions.
Answer: FALSE
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
21) Modules such as collections, debt management, travel and expense management, and
installment payments, are usually found in a ________.
A) supply chain management system
B) financial management system
C) human capital management system
D) customer relationship management system
Answer: B
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
5
22) An enterprise information system that supports financial accounts and processes, including
accounts payable, accounts receivable, procurement, cash management, budget planning, assets,
general ledger, and related activities is called a ________.
A) financial management system
B) supply chain management system
C) human capital management system
D) customer relationship management system
Answer: A
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
23) Which of the following activities is supported by financial management systems?

A) mapping the employee life cycle, starting from recruitment to retirement
B) deciding which suppliers to use for sourcing raw-materials
C) negotiating the terms and conditions of contracts made with vendors
D) creating and maintaining a repository of contact information
Answer: C
Page Ref: 145
Chapter LO: 1
24) Consistency in the financial management system is maintained by ________.

A) supporting multiple finance-related activities and processes
B) creating bridges and interfaces to other systems
C) generating exception reports
D) creating compliance reports
Answer: B
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
Course LO: Discuss best practices for selecting, evaluating, and managing information systems
projects
6
25) The financial management system of a software company allows for automatic updating of
the general ledger whenever there are any transactions in accounts receivable and accounts
payable. This is an example of ________.
A) compliance reporting
B) business reporting
C) service delivery applications
D) integrating the components
Answer: D
Page Ref: 145
Chapter LO: 1
26) Process improvements through integration of modules and creation of workflows is typically
done for ________.
A) financial analytics and financial reporting
B) general ledger and asset management
C) cash management and budget planning
D) procurement and accounts payable
Answer: D
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
27) Which of the following is essential to financial workflows?

A) eXtensible Business Reporting Language (XBRL)
B) social software
C) online, interactive forms
D) demand forecast accuracy (DFA)
Answer: C
Page Ref: 145
Chapter LO: 1
Difficulty: Easy
7
28) A construction company handles all orders, approvals, invoices, and payments manually.
Which of the following will help the company implement a faster approval system for its
financial activities?
A) integrating the modules in the financial system
B) financial analytics and financial reporting
C) cash management and budget planning
D) supply chain management
Answer: A
Page Ref: 145
Chapter LO: 5
Difficulty: Easy
29) Carrey, the office manager for an insurance company, suspects that some of the sales
representatives are submitting their travel expenses receipts twice. Which of the following would
help her spot the fraudulent transactions?
A) non-compliance reports
B) exception reports
C) audit reports
D) compliance reports
Answer: B
Page Ref: 147
Chapter LO: 1
30) Exception reports help in ________.

A) mandating stricter financial reporting
B) identifying key elements from statistical tables
C) spotting fraudulent transactions
D) conducting financial analysis
Answer: C
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
31) The Sarbanes-Oxley Act, passed in 2002, ________.

A) enhanced U.S. reporting standards for public companies
B) mandated background checks for all employees
C) established the Federal Deposit Insurance Corporation (FDIC) in the United States
D) provides for regulation of securities issued in the United States
Answer: A
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
8
32) XBRL, part of the XML family of standardized languages, is specialized for ________.
A) time sheets and payroll documents
B) accounting and business reports
C) supply chain reports
D) e-marketing
Answer: B
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
33) Giving clear definitions and tags to terms in finance, such as "Net Profit" and "Sales
Revenue," makes data ________.
A) machine-readable
B) concise and error-free
C) up-to-date
D) computer-readable
Answer: D
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
34) Which of the following is a function of the International Accounting Standards Board
(IASB)?
A) representing accountants employed in the public and private sectors in the United States
B) establishing international standards on ethics in auditing and public sector accounting
C) developing and promoting a single worldwide set of financial reporting standards
D) providing professional accountants worldwide with access to a wide range of resources
Answer: C
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
35) One of the goals of compliance reporting is to ________.

A) identify events that fall outside accepted ranges
B) develop a common language for financial reporting
C) create streamlined and paperless workflows
D) optimize the flow of products and services
Answer: B
Page Ref: 147
Chapter LO: 1
Difficulty: Easy
9
36) Which of the following is a function of a Human resources management system?
A) workforce planning and optimizing the labor schedules
B) planning and optimizing of terrestrial transport rounds
C) tracking all correspondence with customers
D) creating a centralized repository of contact information
Answer: A
Page Ref: 148
Chapter LO: 1
37) A Core Human Capital Management application is responsible for ________.

A) tracking employees' attendance and activities
B) handling E-recruitment and position applications
C) tracking employees' demographic information
D) handling promotions and compensation management
Answer: C
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
38) Which of the following keeps track of time and attendance, sick leave, vacation leave, and
project assignments?
A) talent management application
B) core human resources management application
C) service delivery module
D) workforce management module
Answer: D
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
39) Which of the following would airport operators and airlines use for optimizing their staff
schedule of ground personnel?
A) workforce optimization application
B) service delivery module
C) workforce management module
D) core human resources management application
Answer: C
Page Ref: 148
Chapter LO: 2
10
40) Wikis and blogs are included in which module of human capital management systems?
A) core human resources management application
B) service delivery module
C) workforce management module
D) social software
Answer: D
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
41) Which of the following applications focuses on the employee life cycle?
A) workforce management module
B) social software
C) service delivery module
D) talent management applications
Answer: D
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
42) Laid-off workers, who are hired back when business recovers based on their positive attitude
and networking capabilities, are also called ________.
A) boomerangs
B) laggards
C) freelancers
D) black swans
Answer: A
Page Ref: 149
Chapter LO: 2
Difficulty: Easy
43) The percentage of workers who left and were replaced during a time period is called
employee ________.
A) layoff
B) turnover
C) attrition
D) tracking
Answer: B
Page Ref: 150
Chapter LO: 2
Difficulty: Easy
11
44) The total of termination costs, hiring costs, training costs, and other costs related to replacing
a worker is called ________.
A) cost per hire
B) sunk cost
C) turnover cost
D) hidden cost
Answer: C
Page Ref: 150
Chapter LO: 2
Difficulty: Easy
45) Which of the following is calculated by adding the average advertising costs, agency fees,
recruiter's salary and benefits, and relocation expenses for new employees?
A) turnover cost
B) cost per hire
C) employee cost
D) retention cost
Answer: B
Page Ref: 150
Chapter LO: 2
Difficulty: Easy
46) The monetary gains produced by the organization's expenditures on salaries, benefits,
bonuses, and other costs for employee talent is called ________.
A) turnover costs
B) net profit
C) human capital return on investment
D) rate of earnings on invested capital
Answer: C
Page Ref: 150
Chapter LO: 2
Difficulty: Easy
47) Which of the following is the function of supply chain management?

A) optimizing the flow of products and services from their source to the customer
B) restructuring the organizational hierarchy to facilitate effective communication
C) improving the visibility of a product or service through effective promotional strategies
D) identifying the optimum target market to increase the likelihood of the sale of a product or
service
Answer: A
Page Ref: 150
Chapter LO: 3
Difficulty: Easy
performance
12
48) Supply Chain Operations Reference (SCOR) is ________.
A) a model that describes the distortions in a supply chain
B) a measure of how easily managers can track timely and accurate supply chain metrics
C) a measure of the difference between forecasted and actual demand
D) a model that illustrates five processes that underlie the supply chain.
Answer: D
Page Ref: 151
Chapter LO: 3
Difficulty: Easy
performance
49) Which of the following standardizes terminology to improve communications among

suppliers and customers?
A) demand forecast accuracy
B) Supply Chain Operations Reference
C) Supply Chain Council
D) supply chain optimization
Answer: B
Page Ref: 151
Chapter LO: 3
Difficulty: Easy
performance
50) Which of the following is NOT a part of the Supply Chain Operations Reference (SCOR)?
A) sourcing raw-materials
B) delivering products or services
C) providing customer support
D) planning and strategizing
Answer: C
Page Ref: 151
Chapter LO: 3
Difficulty: Easy
performance
13
51) Why does a clothes manufacturing company that follows a low-cost leadership strategy post
the "All sales final" sign on its products?
A) to make it easy for managers to track inventories
B) to streamline financial workflows
C) to increase the sale of its products
D) to reduce the costs incurred in the supply chain
Answer: D
Page Ref: 152
Chapter LO: 3
performance
52) ________ describes how easily managers can track timely and accurate supply chain metrics.
A) Malleability
B) Ductility
C) Flexibility
D) Visibility
Answer: D
Page Ref: 152
Chapter LO: 3
Difficulty: Easy
performance
53) Demand forecast accuracy is important because underestimating demand leads to ________.
A) high inventory costs
B) discount blowouts
C) customer satisfaction
D) lost sales
Answer: D
Page Ref: 153
Chapter LO: 3
Difficulty: Easy
performance
14
54) Demand forecast accuracy is important because overestimating demand leads to ________.
A) discount blowouts
B) decreased inventory costs
C) lost sales
D) increased prices
Answer: A
Page Ref: 153
Chapter LO: 3
performance
55) A company resorts to discount blowouts to get rid of excess merchandise. Which of the
following scenarios is most likely to have triggered this action?
A) decrease in inventory costs
B) ineffective tracking of the inventory
C) overestimating demand forecast accuracy
D) increase in the price of raw materials
Answer: C
Page Ref: 153
Chapter LO: 3
performance
56) Groundbreaking interventions can sometimes dramatically reduce supply chain costs. Which
of the following statements illustrates this claim?
A) Sales of AT&T cell-phone plans depended heavily on iPhone sales.
B) Netflix replaced the U.S. Postal Service with Federal Express as its supplier.
C) The "cross-docking" approach was adopted by Walmart.
D) Dow Chemical closely monitors the location of hazardous materials.
Answer: C
Page Ref: 154
Chapter LO: 3
Difficulty: Easy
performance
15
57) Which of the following will have a major impact on global supply chain costs?
A) high attrition rate
B) increasing focus on international business ethics
C) reduced federal grants toward research and development in IT
D) restrictions on carbon emissions
Answer: D
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
58) Transportation management software (TMS) is used to ________.

A) ensure compliance for cross-border transactions
B) predict demand
C) optimize shipping
D) manage staff scheduling
Answer: C
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
59) Which of the following types of software is used to manage and optimize inventories and
space allocation?
A) supply chain planning software
B) transportation management software
C) warehouse management software
D) trade management software
Answer: C
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
16
60) A bag manufacturing company had suffered financial losses by overestimating demand,
which led to overproduction. Which of the following software would help prevent such situations
in the future?
A) sales force optimization software
B) supply chain planning software
C) manufacturing execution system
D) customer relationship management software
Answer: B
Page Ref: 155
AACSB: Use of information technology; Analytic skills
Chapter LO: 3
performance
61) Which of the following is a function of a supply chain planning software?

A) optimizing inventories
B) predicting demand
C) cross-docking
D) optimizing shipping
Answer: B
Page Ref: 155
AACSB: Use of information technology
Chapter LO: 3
Difficulty: Easy
performance
62) Which of the following is a function of a warehouse management software?

A) cross-docking
C) fleet routing and scheduling
D) ensuring compliance for cross-border transactions
Answer: A
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
17
63) Which of the following is a function of a transportation management software?
A) fleet routing and scheduling
C) optimizing inventory
D) cross-docking
Answer: A
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
64) Which of the following software is used to ensure compliance for cross-border transactions
for importers and exporters?
A) warehouse management software
B) supply chain planning software
C) global trade management software
D) trade management software
Answer: C
Page Ref: 155
Chapter LO: 3
Difficulty: Easy
performance
65) The bullwhip effect can be reduced if ________.

A) suppliers receive faxed purchase orders from the retailer
B) suppliers are provided with warehouse management software
C) suppliers have real-time access to up-to-date retail sales data
D) suppliers are provided with global trade management software
Answer: C
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
18
66) An electronic bridge between partner companies in a supply chain that is used to transmit
real-time information about orders, inventories, invoices, and other data is called ________.
A) electronic markets
B) financial networks
C) dot-com markets
D) electronic data interchange
Answer: D
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
67) Collaboration in the supply chain through electronic markets, compared to electronic data
interchange, is ________.
A) less flexible
B) more flexible
C) more secure
D) less secure
Answer: B
Page Ref: 156
Chapter LO: 3
performance
68) A(n) ________ is an information sharing system where buyers can browse products, prices,
and stocks for many sellers, electronically place orders, and complete transactions.
A) electronic data interchange
B) financial network
C) electronic market
D) dot-com market
Answer: C
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
19
69) ________ improve visibility in supply chains during transit and in storage.
A) Flatbed scanners
B) Wireless scanners
C) Barcode battlers
D) Vulnerability scanners
Answer: B
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
70) Which of the following devices receives signals from nearby orbiting satellites and
triangulates location based on the distance each signal travels?
A) electronic data interchange devices
B) local positioning system devices
C) global positioning systems devices
D) RFID devices
Answer: C
Page Ref: 157
Chapter LO: 3
Difficulty: Easy
performance
71) ________ encompasses the strategies, processes, and information systems an organization
uses to build and maintain relationships with its current and prospective users.
A) Enterprise resource planning systems
B) Customer relationship management
C) Human capital management
D) Customer analytics
Answer: B
Page Ref: 158
Chapter LO: 4
Difficulty: Easy
72) Which of the following metrics helps organizations in retaining customers?

A) customer satisfaction index
B) average performance ratings
C) turnover costs
D) demand forecast
Answer: A
Page Ref: 159
Chapter LO: 4
Difficulty: Easy
20
73) An online clothes selling Web site has a low rate of customer retention. Which of the
following can help increase its customer retention?
A) using uninvited pop-up chat to encourage customers to buy products
B) using CRM to track customer behavior when they visit the site
C) promoting the Web site through conventional advertising to gain visibility
D) building seamless financial workflows
Answer: B
Page Ref: 159
Chapter LO: 5
74) Which of the following is a CRM strategy to earn more revenue from existing customers?
A) cross-selling
B) permission marketing
C) predictive analytics
D) foot-in-the-door technique
Answer: A
Page Ref: 159
Chapter LO: 4
Difficulty: Easy
75) Which of the following metrics is useful for evaluating CRM strategy?
A) turnover costs
B) average performance ratings
C) total revenue
D) demand forecast accuracy
Answer: C
Page Ref: 160
Chapter LO: 4
Difficulty: Easy
76) ________ helps organizations to classify the user-generated content as pro, con, or neutral.
A) Predictive analytics
B) Affective computing
C) Polarity item-analysis
D) Sentiment analysis
Answer: D
Page Ref: 160
Chapter LO: 4
Difficulty: Easy
21
77) The information systems used by customer relationship management (CRM) are often
________.
A) outdated
B) unified
C) fragmented
D) redundant
Answer: C
Page Ref: 161
Chapter LO: 4
Difficulty: Easy
78) E-marketing information systems provide extensive tracking capabilities by embedding in

the HTML e-mail a ________, which is a tiny, invisible image, typically a single pixel with a
unique identifier.
A) web trojan
B) web beacon
C) web analytic
D) web log
Answer: B
Page Ref: 162
Chapter LO: 4
Difficulty: Easy
79) ________ boosts the performance of an organization's sales reps by helping them track and
manage their accounts, contacts, leads, and to-do lists.
A) Customer service and support
B) Sales force automation
C) Web beacon
D) E-mail marketing
Answer: B
Page Ref: 163
Chapter LO: 4
Difficulty: Easy
22
80) CNN deployed Salesforce.com for its sales team; it provides real-time web-accessible
metrics showing number of new accounts for each rep, and it automatically sends e-mails to the
whole organization to recognize and congratulate the top performers. This works on which of the
following principles?
A) self-determination theory
B) team-dynamics theory
C) human motivation
D) social comparison
Answer: C
Page Ref: 163
Chapter LO: 4
Difficulty: Easy
81) Early integrated application suites evolved from systems that supported ________.
A) supply chain management
B) manufacturing resource planning
C) product lifecycle management
D) distribution resource planning
Answer: B
Page Ref: 164
Chapter LO: 5
Difficulty: Easy
82) An integrated application suite to support the whole enterprise that includes modules to
manage financials, human resources, supply chain, customer relationships, and other business
processes, creating a "suite of suites" is called ________.
A) enterprise resource planning
B) total quality management
C) business advancement planning
D) business process management
Answer: A
Page Ref: 165
Chapter LO: 5
Difficulty: Easy
23
83) In an ERP suite that includes modules specialized for higher education, which of the
following would be used to track donations, pledges, and gifts, and manage contacts and donor
relationships?
A) enrollment management
B) institutional advancement
C) e-learning
D) human resources
Answer: B
Page Ref: 166
Chapter LO: 5
Difficulty: Easy
84) Which of the following strategies for integrating ERP modules is built from the ground up
with consistent user interfaces, integrated backend database, and a single architectural
foundation?
A) the synchronized suite
B) the vendor-branded suite
C) the best of breed module
D) the engineered suite
Answer: D
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
85) The advantage of using a suite with synchronized modules is that ________.
A) modules are integrated at the edges
B) a common architecture overlays the systems to improve consistency across the modules
C) data integrity is high, with consistent, up-to-date, and nonduplicated elements
D) modules can have very rich functionality and can be implemented individually, reducing risk
Answer: B
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
24
86) In which of the following enterprise resource planning (ERP) modules does the vendor
provide middleware to connect and synchronize systems that may be running on different
platforms?
A) the best of breed module
B) the engineered suite
C) the synchronized suite
D) the vendor-branded suite
Answer: C
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
87) An employee's e-mail address is stored in one place and can be accessed by any module that
needs it. This is an example of ________.
B) the best of breed module
C) the engineered suite
Answer: C
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
88) Switching costs are high in which of the following enterprise resource planning modules?
B) the engineered suite
C) the best of breed module
Answer: B
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
25
89) Which of the following is a characteristic of a vendor-branded suite?
A) It matches user requirements closely.
B) It is built from the ground up.
C) It has a single architectural foundation.
D) Its modules are highly interdependent.
Answer: A
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
90) Which of the following requires integrated application suites with synchronized modules?
A) building ERP products from the ground up
B) creating platforms that match user requirements closely
C) building modules that offer solid integration
D) enhancing ERPs through mergers or acquisitions
Answer: D
Page Ref: 167
Chapter LO: 5
91) What is used as a bridge to integrate separate information systems and synchronize data
across multiple systems?
A) middleware
B) object-web
C) enterprise integration pattern
D) enterprise service bus
Answer: A
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
26
92) Which of the following is a disadvantage of the engineered suite?
A) high switching costs
B) independent modules
C) low integrity
D) multiple architectural foundations
Answer: A
Page Ref: 167
Chapter LO: 5
Difficulty: Easy
93) Organizations that use the best of breed approach face the challenge of ________.
A) modifying the ERP systems to meet changing business needs
B) working with the lack of rich features that users want
C) maintaining consistency in different systems
D) maintaining security in the ERP systems
Answer: C
Page Ref: 168
Chapter LO: 5
94) The "big bang" approach involves ________.

A) implementing software-as-a-service (SaaS) products
B) going live with all the core modules at the same time
C) matching ERP modules to the company needs
D) purchasing best of breed suites
Answer: B
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
95) A Chinese furniture company implemented the SAP module, but failed. Which of the
following is the most likely reason for its failure?
A) it was not very secure
B) it required placing valuable assets on servers in the cloud
C) it was foreign-developed
D) it was very expensive
Answer: C
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
27
96) Vendors are providing software-as-a-service (SaaS) products because of the need to
________.
A) lower implementation costs
B) standardize ERP services
C) lower implementation time
D) lower turnover costs
Answer: A
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
97) Some vendors offer ________, where companies pay subscription fees to access the vendor's
software remotely.
A) software-as-a-service (SaaS) products
B) a remote web-application framework
C) middleware
D) virtual enterprise integration
Answer: A
Page Ref: 168
Chapter LO: 5
Difficulty: Easy
98) How does integration of components in a financial management system lead to paperless
workflows?
Answer: Integration among the modules involves linking the various financial modules; for
instance, the details from accounts receivable and accounts payable transactions should
automatically update the general ledger. Such integration of the various components of the
financial system allows all the staff to have real-time access to the same underlying information.
For example, an employee can use online shopping carts to generate procurements from
established vendors and route their requests to supervisors for approval, after which the
electronic order goes directly to the supplier. The software builds online, interactive forms so
staff can make corrections along the way, with customized workflow tables that determine the
routes. This results in a streamlined and paperless workflow in an organization.
Page Ref: 145, 146
Chapter LO: 1
28
99) List the components of human capital management systems.
Answer: Human capital management (HCM) encompasses all the activities and information
systems that support effective management of an organization's human capital. The components
of human capital management systems include workforce management module, talent
management applications, service delivery applications, and core human resources management
application.
Page Ref: 148
Chapter LO: 2
Difficulty: Easy
100) "Sometimes companies choose to go upstream and become their own suppliers." Explain
this statement with an example.
Answer: Sometimes companies choose to go upstream and become their own suppliers. For
example, Pepsi wanted to hook consumers in China on salty Lay's potato chips—a sure way to
push soda sales. Unable to find local potato growers, it decided to go upstream. Pepsi branched
out with its own potato farms in Inner Mongolia to ensure a reliable supply.
Page Ref: 152
Chapter LO: 3
101) What are some of the causes of lack of visibility of supply chain metrics?
Answer: Visibility describes how easily managers can track timely and accurate supply chain
metrics. Some metrics, such as total sales by product, are easy to get, but a maddening lack of
transparency plagues many others. This is because the data might be housed in a supplier's or
customer's database with no real-time access, and only slow-moving paper reports transmit
critical information. Valuable metrics may also be invisible simply because no one is collecting
them. For example, many matrices are fleeting time durations that are too costly and
cumbersome to collect.
Page Ref: 152
Chapter LO: 3
Difficulty: Easy
performance
102) What is bullwhip effect?

Answer: Bullwhip effect describes the distortions in a supply chain caused by changes in
customer demand, resulting in large swings in inventory levels as the orders ripple upstream
from the retailer to the distributor and manufacturer. Small fluctuations in retail sales trigger
large swings in inventory levels, as the retailer sends orders to the distributor to replenish the
stock, and the distributor follows up with orders to the manufacturer. As orders are filled and
products shipped, inventory builds up in some places but shortages occur in others.
Page Ref: 153
Chapter LO: 3
Difficulty: Easy
performance
29
103) Describe how Dell reduced its operating costs.
Answer: Dell reduced its operating costs by bypassing the distributors and retailers in the supply
chain. At dell.com, the customer selects the computer online, customizes it, clicks the "Buy"
button, and then tracks the order until it arrives at the front door, shipped directly from the
manufacturer. The monitor, shipped in a separate box, may come from a different manufacturer,
but Dell synchronizes the delivery so all the hardware arrives at the same time. This low cost
strategy helped Dell to dominate the PC market for a while.
Page Ref: 154
Chapter LO: 3
performance
104) Why do companies use electronic data interchange? What are its advantages and
disadvantages?
Answer: Since the 1970s, companies have been using electronic data interchange (EDI) to
transmit information about orders, inventories, invoices, and other data electronically between
partners in a supply chain. This approach to bridge building, which predates the Internet, often
relies on private networks and proprietary software and is time-consuming to set up. While it
dramatically improves supply chain performance by alerting suppliers and customers about real-
time demand, it also tends to lock the partners into their relationship. Having spent so much time
and energy building that data bridge, they are less likely to switch partners.
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
105) Which sensing device would be appropriate for the supply chain of a blood bank?
Answer: The RFID chip attached to the package transmits its own data as it passes by readers
throughout the supply chain, at seaports, railway stations, and warehouses. When error-free
efficiency is mandatory, the extra expense for RFID tags is justified. Since blood banks cannot
afford to make mistakes in their supply chain, RFID tracking would be an appropriate sensing
device for them. For example, German and Italian hospitals are piloting RFID tracking to reduce
such errors and ensure patients receive the right blood type.
Page Ref: 156
Chapter LO: 3
Difficulty: Easy
performance
30
106) What are the common goals managers use to devise a strategy for building customer
relationships?
Answer: To devise a strategy for building customer relationships, managers need clarity about
their actual goals. Some common objectives are: improving customer retention, improving
profitability, growing revenue, and listening to the customers.
Page Ref: 150
Chapter LO: 4
Difficulty: Easy
107) Explain, with an example, how a company can reduce the costs of serving each customer
without diminishing customer satisfaction.
Answer: Software that shows customers' current stock levels at their local stores can save the
company a phone call, and save the customer a disappointing trip to the store.
For example, Apple experienced delays in delivery of its iPhone when it underestimated demand
for the new model. The company helpfully posted an "iPhone Availability Tool" to let buyers
select their colors and options, and then check whether a nearby store had the model in stock.
Page Ref: 159
Chapter LO: 4
Difficulty: Easy
108) What is sentiment analysis? Explain, with an example, how it can help businesses.
Answer: Sentiment analysis is the capability of specialized software to scan text input surveys,
blogs, or other user-generated content and classify the opinions as pro, con, or neutral towards
the company or product. For example, an online ticketing company called StubHub used
sentiment analysis software from Scout Labs to spot a surge in complaints from baseball fans.
The stadium mistakenly announced to some ticket holders that a Yankees-Red Sox game was
rained out, so the ticket holders requested refunds. The game was only delayed, however, and
StubHub initially denied fans' requests. The company quickly reversed that policy when
sentiment analysis caught the growing tide of negative posts about StubHub on sports blogs.
Page Ref: 160, 161
Chapter LO: 4
Difficulty: Easy
31
109) Explain how e-marketing information systems track customer behavior.
Answer: Technically, the e-marketing software tracks customer behavior by embedding in the
HTML e-mail a web beacon or web bug, which is a tiny, invisible image, typically a single pixel
with a unique identifier. The image is actually located on the e-marketing server, and when the
customer opens the message, a request is sent from the recipient's computer to retrieve the
invisible image and download it. The request includes the date, time, and IP address of the
computer making the request, and the unique identifier links the request to the customer's e-mail
address as well.
Page Ref: 162
Chapter LO: 4
Difficulty: Easy
110) What is a web beacon? How can people avoid them?

Answer: A web beacon (or web bug) is a tiny, invisible image, typically a single pixel with a
unique identifier, used on Web sites to track visitors. To avoid sending tracking information
while opening e-mails, people can set their e-mail client to "text only" so it does not download
any graphics, or they can go offline before they open the mail. Unfortunately, neither option is
very convenient.
Page Ref: 162
Chapter LO: 4
Difficulty: Easy
111) What are the capabilities of call center software?

Answer: Call center software can queue calls, let callers know the approximate waiting time,
offer menu options for call routing, and retrieve customer data based on the caller's information
so agents can quickly find answers. The software can track performance metrics for the agents as
well, such as time spent per call or number of escalated calls. Some even assess the caller's stress
level through voice analysis, so managers can intervene early. The capabilities of call center
systems are expanding to full-featured contact center systems in which agents can interact with
customers by phone, through online chat, through e-mail, and inside social networks and
community forums.
Page Ref: 163
Chapter LO: 4
Difficulty: Easy
32
112) What are the features of SAP's Business Suite?
Answer: SAP's Business Suite offers a vast array of applications going well beyond the basics.
Its expanding list encompasses electronic document management, RFID and bar-code tracking,
event management, product design, business intelligence, data mining, and more. The company
also partners with companies such as Nakisa, which has a rich application for visualizing and
managing talent throughout the organization. The partnership makes it easier for clients to
integrate Nakisa's product into their SAP environment.
Page Ref: 165
Chapter LO: 5
Difficulty: Easy
33

Information Systems in Organizations 1st Edition Patricia Wallace Test Bank 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Information Systems in Organizations 1st Edition Patricia Wallace Test Bank 1

Uploaded by

Copyright:

Available Formats

Information Systems in Organizations 1st

Edition Wallace 0136115624 9780136115625

Download full test bank at:

Information Systems in Organizations (Wallace)

3) Visualization and charting tools are never used in talent management.

5) Corporate responsibility affects a company's decisions regarding sources and suppliers.

15) Marketers treasure customer relationship management applications, drawing on them to

23) Which of the following activities is supported by financial management systems?

24) Consistency in the financial management system is maintained by ________.

27) Which of the following is essential to financial workflows?

30) Exception reports help in ________.

31) The Sarbanes-Oxley Act, passed in 2002, ________.

35) One of the goals of compliance reporting is to ________.

37) A Core Human Capital Management application is responsible for ________.

47) Which of the following is the function of supply chain management?

49) Which of the following standardizes terminology to improve communications among

58) Transportation management software (TMS) is used to ________.

61) Which of the following is a function of a supply chain planning software?

62) Which of the following is a function of a warehouse management software?

65) The bullwhip effect can be reduced if ________.

72) Which of the following metrics helps organizations in retaining customers?

78) E-marketing information systems provide extensive tracking capabilities by embedding in

94) The "big bang" approach involves ________.

102) What is bullwhip effect?

110) What is a web beacon? How can people avoid them?

111) What are the capabilities of call center software?

You might also like