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TRUE/FALSE 1. One of the four functional areas of operation is Human Resources (HR). ANS: T 2.

Historically, businesses have had organizational structures that separated the functional areas, but business schools have not been organized like that. ANS: F 3. Information systems that are designed so functional areas share data are called integrated information systems. ANS: T 4. The functional area of Supply Chain Management (SCM) sets prices. ANS: F 5. Sales forecasts are historical records of sales. ANS: F 6. Accounts receivable are recorded by the Human Resources department (HR). ANS: F 7. The business function of government compliance falls under the Supply Chain Management functional area of operation. ANS: F 8. The business process of Cash Flow Management is handled under the Accounting and Finance functional area of operation. ANS: T 9. When manufacturing runs out of raw materials, its known as a stockout. ANS: T 10. To avoid stockouts, manufacturers might carry extra raw materials. This excess is known as safety stock. ANS: T 1. The complex hardware and software that goes into an ERP system was not available until the 1970s. ANS: F 2. The capabilities of computer hardware doubling every 18 months is known as Gates Law.

ANS: F 3. Scalability refers to a piece of equipments capacity being exceeded and that capacity being expanded by adding new hardware. ANS: T 4. The software that holds data in an organized fashion is known as a database management system, or a DBMS. ANS: T 5. Materials requirements planning (MRP) software allows a plant manager to plan production and raw materials requirements by guess-timation. ANS: F 6. The direct computer-to-computer exchange of standard business documents is known as EDI, or electronic data interchange. ANS: T 7. The functional model of business and management was useful for decades and is still the current school of thought. ANS: F 8. SAPs first software project involved developing a materials and logistics management system for ICI. ANS: T 9. SAP expanded into international markets but kept the software in a single language, German, and a single currency, the Euro. ANS: F 10. SAPs R/3 can only run on mainframe computers. ANS: F 11. Old systems are known as legacy systems. ANS: T 12. Open architecture is defined as allowing third-party software vendors to write software to integrate with the main package, such as SAPs R/3. ANS: T

13. The Oracle corporation began selling ERP software; they recently acquired a firm known for its database management systems. ANS: F 14. Defining the dollar limits on transactions in the SAP R/3 system is known as limiting the tolerance groups. ANS: T 15. R/3s design incorporates best practices, which means the designers have chosen the best, most efficient way in which a business process should be handled. ANS: T 16. One benefit of ERP systems is the elimination of updating and repairing many separate computer systems. ANS: T 17. A large company might spent $1 million on ERP implementation, which includes software and training. ANS: F 18. Not every company is suited to ERP systems. ANS: T 19. SAPs internal programming language is visual basic. ANS: F 20. The return on investment (ROI) is an assessment of an investments projects value that is calculated by dividing the value of the projects benefits by the value of the projects cost. ANS: T 21. In the following figure, data is entered into the system once and then used throughout the organization.

ANS: T 22. Individual information systems for each functional area in a company are known as silos. ANS: T 23. Silos of information are also known as stovepipes. ANS: T 24. The most current version of SAPs software is known as R/3. ANS: F 25. The most current version of SAPs software is known as SAP ERP. ANS: T 1. In SAP R/3, relatively permanent data about customers is kept in the Customer Master Data table. ANS: T 2. In SAP R/3, relatively permanent data about inventory is kept in the Material Master Data table. ANS: T 3. In SAP R/3, relatively permanent data in the Material Master Data table is available to only one module, the Materials Management module. ANS: F

4. In SAP R/3, relatively permanent data about customers in the Customer Master Data table is available to only the Sales and Distribution module. ANS: F 5. SAP R/3s system allows one to group customers, which is commonly known as an "organizational structure". ANS: T 6. In SAP R/3, the linked set of document numbers is called the "document flow". ANS: T 7. In SAP R/3 the electronic evidence of a transaction is called a document. ANS: T 8. The first step in the SAP ERP sales and distribution process is the Sales Order Processing step. ANS: F 9. Pricing cannot be set or configured in the SAP ERP system. ANS: F 10. Pricing can be set using condition techniques. ANS: T 11. CRM software stands for Custom Resource Management. This is a specialized type of ERP. ANS: F 12. Global ATP allows for searching of a particular product at multiple plants worldwide. ANS: T 13. Returned products to a company are processed more efficiently if the customer first calls for a RMA. ANS: T 14. An inquiry in the SAP ERP system occurs in the Delivery step of the Sales and Distribution cycle. ANS: F 15. 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. ANS: T

16. The PO Number is a number assigned by Fitter Snacker to track orders in the SAP ERP system. ANS: F 17. With on-demand CRM, the software and computer equipment reside with the CRM provider; it is not installed in-house. ANS: T 1. Good production decisions can be made knowing only the current level of finished goods inventory. ANS: F 2. Production planners aggregate products into product groups to make forecasts and plans more accurate. ANS: F 3. The Sales and Operations Planning process is used to combine the sales forecast with capacity information to determine a production plan for finished goods. ANS: T 4. Demand Management in the SAP R/3 system is the process where sales forecasts are adjusted to incorporate the impact of marketing initiatives. ANS: F 5. The MRP process determines the schedule of finished goods production. ANS: F 6. Supply Chain Management is as much an approach to doing business with suppliers as it is a technology. ANS: T 7. In a traditional supply chain, demand information is transmitted rapidly to all members of the supply chain. ANS: F 8. ERP systems are necessary to implement good supply chain management. ANS: F 9. The percentage of the order that the supplier provides in the first shipment is known as the first-rate. ANS: F 10. Make to order items are produced to fill customers requests. ANS: T

11. 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. ANS: F 12. Rough-cut planning is a common term in manufacturing for aggregate planning. ANS: T 13. The production plan for all finished goods is known as the MPS, or the master production schedule. ANS: T 14. Another term for the recipe of a product is the bill of materials. ANS: T 15. Lead times and lot sizing help a company determine the transfer of goods to the customer. ANS: F 16. Because Fitter Snacker uses large quantities of oats, the most cost-effective way to purchase oats is to buy a farm and grown them. ANS: F 17. 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. ANS: T 18. The percentage of the order that the supplier provided in the first shipment is known as the initial order lead time. ANS: F 19. The initial fill rate measures the time needed for the supplier to fill the order. ANS: F 1. An income statement shows a company's profit or loss in a period. ANS: T 2. When a company has an ERP system it no longer needs a general ledger. ANS: F 3. When a company has an ERP system the general ledger is maintained by the ERP system. ANS: T

4. The SAP ERP system has a module called Accounting and Finance. ANS: F 5. In SAP ERP access to general ledger accounts is spread over many modules. ANS: T 6. In a manufactured item, the cost of heating the plant would be considered part of the item's raw materials. ANS: F 7. In a manufactured item, the cost of heating the plant would be considered part of the item's overhead. ANS: T 8. Using standard costs to accumulate manufacturing costs means that the company does not have to keep track of actual manufacturing costs. ANS: F 9. Activity based costing is a way of treating overhead costs more like direct costs. ANS: T 10. Activity based costing means keeping track of instances of activities as well as their costs. ANS: T 11. Having ERP will let a company use more cost allocation bases. ANS: T 12. Having ERP will require a company to restrict the number of cost allocation bases. ANS: F 13. In an ERP system, data does not flow from one module to another. ANS: T 14. In SAP ERP an event's "document flow" can be accessed from any SAP ERP screen. ANS: T 15. SAP ERP's management reporting tools use data in data warehouses. ANS: T

16. The capability of viewing summary information and then being able to look at details behind the summary is known as data mining. ANS: F 17. The US Congress passed the Sarbanes-Oxley Act of 2002 in response to the fraud and abuse in the Enron collapse. ANS: T 18. An ERP system could have prevented all fraud at Enron. ANS: F 19. Its very easy to delete items in the ERP system. ANS: F 20. User authorizations help prevent fraud and abuse by employees paying fictitious vendors. ANS: T 21. Tolerance groups allow for limiting the authority of employees over certain amounts of transactions. ANS: T 22. The following is an example of Fitter Snackers Balance Sheet.

ANS: T 23. The following is an example of Fitter Snackers Income Statement.

ANS: F 24. The following is an example of Fitter Snackers Balance Sheet.

ANS: F 25. The following is an example of Fitter Snackers Income Statement.

ANS: T 26. Another name for an income statement is a profit and loss statement. ANS: T 27. In an ERP system, the balance sheet and P&L statements are database reports. ANS: T 28. Managerial accounting deals with determining the costs and profitability of the companys activities. ANS: T 29. In the SAP ERP system, inputs to the general ledger occur simultaneously with input of business transactions to the various modules. ANS: T 30. The following SAP screen is an example of document flow.

ANS: T 31. The following screen in SAP is an example of production planning.

ANS: F 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. ANS: T

1. The tasks associated with managing a company's workforce is now known as human capital management or HCM. ANS: T 2. The responsibilities of an HR department include manufacturing of goods and purchasing raw materials. ANS: F 3. Hiring costs for an employee can reach as high as $70,000. ANS: T 4. Sabermetrics is the statistical technique that universities use to accept students into their college programs. ANS: F 5. Succession planning should be performed on every employee in the company. ANS: F 1. Any abstract representation of a process is known as a process model. ANS: T 2. A graphical representation of the movement or flow of concrete or abstract items is a spreadsheet. ANS: F 3. The term process mapping is used interchangeably with flowcharting. ANS: T 4. An assessment of disparities between an organization's current situation and its long-term goals is known as a swimlane assessment. ANS: F 5. Process boundaries define which activities are to be included in the process. ANS: T 6. ERP software such as SAP has many business applications but none of them support business processes. ANS: F 7. In flowchart analysis, each activity in the process is analyzed for the value it adds to the product or service. ANS: F

8. Dynamic process modeling takes a basic process flowchart and puts it into motion using computer simulation. ANS: T 9. Software programs that automate the execution of business processes and address all aspects of the process are called ERP Wizards. ANS: F 10. Organizational change management is a trivial part of the implementation process. ANS: F 1. EDI cannot be performed on the Internet. ANS: F 2. Internet based procurement includes trade exchanges among companies competing for the same market. ANS: T 3. Dynamic pricing is enabling more middlemen to get jobs facilitating buying and selling of goods on the Internet. ANS: F 4. To be connected any time from any place to the back-office system can provide a competitive advantage. ANS: T 5. A company that provides the management of applications for a company over a network is called a BOP, a back-office provider. ANS: F 6. ASPs are experts in delivering IS applications. ANS: T 7. A portal is a customized Web site that serves as a home base for individual workers. ANS: T 8. Web services are shops on the Internet where consumers can buy a variety of items. ANS: F 9. XML is similar to HTML in that it only describes the display of the information on a web page.

ANS: F 10. An RFID is a small tag that includes a microprocessor and an antenna. ANS: T 11. 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. ANS: T MULTIPLE CHOICE 1. Which of the following is a functional area of operation? a. Packaging c. Shipping d. Baking b. Supply Chain Management ANS: B 2. Which business function is performed by Accounting and Finance? c. Benefits a. Cost allocation and control b. Taking sales orders d. Plant maintenance ANS: A 3. What are the computers, people, procedures, and software that store, organize, and deliver information in an organization? a. The CPU c. Information systems b. The Process System d. Personnel systems ANS: C 4. Todays managers are beginning to think in terms of business process. A business process cuts across which functional areas of operation? a. Marketing and Sales d. Human Resources b. Supply Chain Management e. All of the above c. Accounting and Finance ANS: E 5. Information systems that can be designed so that functional areas of operation share data are called: c. Non-middleware information systems a. Integrated information systems b. Complete information systems d. Linked information systems ANS: A 6. Analyses that attempt to predict the future sales of a product are called: c. Sales diving a. Sales forecasts b. Sales divining d. Sales deriving ANS: A

7. Which of the following is an input to the Marketing and Sales functional area? a. Production plans c. Per-unit cost b. Raw material orders d. Accounts payable data ANS: C 8. Which of the following outputs would emerge from the Accounting and Finance functional area? a. Packaging orders c. Regulation compliance b. Sales strategy d. Financial reports ANS: D 9. When purchasing a computer, the functional area responsible for handling the financial help for purchasing that computer is a. Marketing and Sales c. Supply Chain Management d. Human Resources b. Accounting and Finance ANS: B 10. When purchasing a computer, the functional area responsible for technical support is c. Supply Chain Management a. Marketing and Sales b. Accounting and Finance d. Human Resources ANS: A 11. When manufacturing runs out of raw material, its known as a(n) a. Shortfall c. Depletion b. Empty shelf d. Stockout ANS: D 12. ____ results in management overinvesting in extra raw materials a. Bulging raw materials c. Safety stock b. Stockup d. Excess baggage ANS: C 13. Which of the following is an input to HR? a. Personnel forecasts b. Sales data ANS: A 1. The complex software and hardware required for ERP systems was not available until the a. 1960s c. 1980s b. 1970s d. 1990s ANS: D 2. The observation that the number of transistors built onto a computer chip doubles every 18 months is known as: c. Doubleting a. Moores Law b. Gates Prophesy d. Acceleration

c. Layoff and recall company policy d. Travel expense company policy

ANS: A 3. When a piece of equipments capacity is exceeded, its capacity can be increased by adding new hardware. This is commonly known as: a. Adaptability c. Scalability b. Middleware d. Computability ANS: C 4. In the 1980s, ____, the technology that holds data in an organized fashion, existed for ERP development. a. Spreadsheets c. Client/Server d. Word-processors b. DBMS ANS: B 5. ____ software allows a plant manager to plan production and raw materials requirements by working backward from the sales forecast. a. DBMS c. MRP b. EDI d. EFT ANS: C 6. The direct computer-to-computer exchange of standard business documents is known as: a. MRP c. EDI b. E-mail d. DDS ANS: C 7. Software ____ are individual programs that can be purchased, installed, and run separately, but extract data from the common database. a. Nodes c. Modules b. Chunks d. Tidbits ANS: C 8. When third party software companies are able to write software to integrate with an ERP system, it is said to have: c. Integrated pieces a. Open architecture b. Clip-ons d. Piecemeal nodes ANS: A 9. Old information and computer systems are known as: a. Dinosaurs c. Legacy systems b. Passe systems d. Aged ones ANS: C 10. ____ is SAPs biggest competitor. a. J.D. Edwards b. PeopleSoft ANS: D

c. Microsoft d. Oracle

11. Which R/3 module records sales orders? a. SD b. MM ANS: A

c. PP d. QM

12. Which R/3 module records transactions in the general ledger? a. CO c. FI b. WF d. PS ANS: C 13. After a company chooses the modules they want to implement, they must decide on about ____ options, which allow the customer to customize the modules to fit their business to some extent. a. Settings c. Optional d. Tandem b. Configuration ANS: B 14. Which of the following is a benefit to running an ERP system? a. Global integration b. Elimination of updating and repairing multiple systems c. Capability to manage operations, not just monitor them d. All of the above are benefits ANS: D 15. An ERP system for a large company will cost ____, including software, training, and implementation. c. $1-5 billion a. $50-500 million b. $1-5 million d. $50,000-$500,000 ANS: A 16. SAPs internal programming language is called: a. R/3 c. Visual Basic b. C++ d. ABAP ANS: D 17. One assessment of a projects value is calculated by the: a. DVT c. ROI b. PMT d. PPT ANS: C 18. Bumpy rollouts of ERP systems are usually caused by: a. Software problems c. Hardware problems d. Configuration problems b. People problems ANS: B 19. The statistical and logical analysis of large sets of transaction data is called: a. Digging c. Data mining b. Hunting d. Hacking

ANS: C 20. ____ is the conducting of business over the Internet. a. R/3 c. E-Commerce b. ABAP d. SCM ANS: C 21. 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 b. Switch ANS: C

c. Configuration d. Programming

22. Individual information systems for each functional area in a company are known as c. Tubers a. Silos b. Bagpipes d. Separated systems ANS: A 23. Which ERP package is a popular software choice for managing human resources and financial activities at universities? a. SAP c. Microsoft Dynamics d. J.D. Edwards b. PeopleSoft ANS: B 24. Which of the following modules in SAP ERP maintains production information. a. SD c. PP b. MM d. QM ANS: C

25. Which of the following module in SAP is a set of tools that can automate the activities in SAP ERP? c. Financial Accounting a. Workflow b. Controlling d. Project System ANS: A 26. What are software that enables systems to exchange data without complicated software links? a. ABAP modules c. Legacy systems d. Best practices b. Web Services ANS: B 1. In SAP ERP the electronic evidence of a transaction is called a ____. a. trail d. audit number b. marker e. document c. tag ANS: E 2. 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. d. Delivery and Billing a. Pre Sales Activities b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: A 3. A customer is granted a 10% price discount in a large order. This is an example of an activity in: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: B 4. A customer's order is checked to see if it can be produced and delivered by the requested date. This is an example of: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: C 5. A customer's documents are released to the warehouse so that the goods can be gathered, packed and boxed. This is an example of: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: D

6. A customer's remittance causes Cash to be debited and Accounts Receivable to be credited. This is an example of: ____ in the sales and distribution process. a. Pre Sales Activities d. Delivery and Billing b. Sales Order Processing e. Payment c. Inventory Sourcing ANS: E 7. In SAP ERP, the history of a transaction (such as a sales order) can be researched by looking at its ____. a. Trail mix d. Material Master Data b. Transaction index e. Sales Master Data c. Document flow ANS: C 8. What kind of software can give top management an overview of a company's complete relationship with a customer? a. One to One Marketing Software b. Open Relationship Software c. Denouement Software d. Customer Relationship Management Software e. Supply Chain Management Software ANS: D 9. 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. Its assigned by the customer to the sales order. What is this number? a. Customer ID c. Material Number b. Purchase Order Number d. Billing Code ANS: B 10. Setting prices for customers can be very complex. SAP helps by offering a control mechanism, called ____, to determine how much to charge a given customer for a given product. a. Pricing Variance c. Condition Technique b. Price Fixing d. Fluctuation ANS: C 11. The ____ system communicates with SAP ERP, BW, and APO systems in developing and executing its plans. a. PPO c. CRM b. SSA d. GUp ANS: C 12. This software can automatically route customers who contact the company to a sales representative. Companies can use this software to forecast customer needs. a. Marketing encyclopedias c. One-to-one marketing b. Sales campaign management d. Sales force automation ANS: D

13. The SAP ERP system allows users to define various ways to group customers and salespeople. These groups are called ____. a. Organizational structures c. Document flows b. Master data d. Audit trails ANS: A 14. In ____ CRM, the software and equipment reside with the CRM provider; it is not installed in-house. a. Walk-up c. Internet d. ERP b. On-demand ANS: B 15. Which of the following are benefits to CRM? a. Lower costs b. Higher revenue c. Improved strategy and performance measurement d. All of the above ANS: D

1. A make-to-stock production system is one where: a. Items are made for inventory in anticipation of sales orders b. Items are produced to fill specific customer orders c. Items are assembled for a specific customer order from an inventory of components d. Both a and c ANS: A 2. An unexpected increase in product demand can lead to: a. A depletion of finished goods inventories b. A depletion of raw materials inventories c. Increased overtime and transportation expenses d. Both a and b e. All of the above ANS: E

3. What is the sales forecast for June of this year that Fitter Snacker should use? a. 6,628 c. 6,935 d. 7,143 b. 7,128 ANS: B 4. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on the weekdays only? a. 7,666 c. 9,582 d. 10,249 b. 9,199 ANS: B

5. What is the maximum number of cases they can produce in the month if they schedule workers for overtime on weekdays and Saturdays? a. 7,666 c. 9,582 b. 9,199 d. 10,249 ANS: D 6. The production plan at Fitter Snacker calls for 4,134 cases of snack bars in January. If there are 22 days in the month, how many cases of snack bars should be produced in a 4-day week? a. 188 c. 940 d. 1034 b. 752 ANS: B 7. What Planned Orders will the MRP logic create: a. An order for 44,000 units in Period 2 b. An order for 44,000 units in Period 3 c. An order for 44,000 units for periods 2 and 3 d. An order for 88,000 units for period 3 ANS: A 8. What will the On Hand inventory be in Period 5 after the system calculated planned orders? a. 0 c. 8,038 b. 440 d. 14,038 ANS: C 9. After MRP is run in the SAP R/3 system: a. The stock/requirements list and MRP list are both updated and show the same information. b. The MRP list is updated but the stock/requirements list is unaffected. c. The stock/requirements list is updated but the MRP list is unaffected d. None of the above. ANS: A 10. 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. ANS: D 11. The order of the steps in the SAP R/3 production planning process are: a. Sales Forecasting, Demand Management, Sales and Operations Planning, MRP b. Sales Forecasting, Demand Planning, Demand Management, MRP c. Sales and Operations Planning, Sales Forecasting, MRP, Demand Management d. Sales Forecasting, Sales and Operations Planning, Demand Management, MRP

ANS: D 12. The production plan for Fitter Snacker calls for 7000 cases for the snack bar product group in June. If the snack bar product group consists of NRG-A and NRG-B bars with the proportion 70% NRG-A bars and 30% NRG-B bars, how many NRG-A bars should be produced in June? a. 500 c. 4690 b. 2010 d. 7000 ANS: C 13. The costs it normally takes to manufacture a product, which is calculated from historical costs and any changes from that, are known as: c. Known costs a. Standard costs b. Abbreviated costs d. Estimated costs ANS: A 14. ____ are disaggregated to generate detailed production schedules. a. Bills of materials c. Internet sales orders b. Production runs d. Rough-cut plans ANS: D 15. What is the production plan for all finished goods? c. PPR - production planning run a. MPS - master production schedule b. QQR - quality query run d. RUN - run ANS: A 16. 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 ANS: C 17. What metric tracks the number of times a supplier meets the agreed upon delivery date? a. Initial fill rate c. On-time performance b. Initial order lead time d. cash-to-cash cycle time ANS: C 18. In the following diagram, what is A?

a. MRP b. Sales Forecasting ANS: B 19. In the following figure, what is B? a. Starting Inventory b. Detailed Scheduling ANS: A 20. In the following figure, what is C? a. Starting Inventory b. Sales Forecasting ANS: D 21. In the following figure, what is D? a. Starting Inventory b. Detailed Scheduling ANS: D PTS: 1

c. Starting Inventory d. Detailed Scheduling

c. Sales Forecasting d. MRP

c. MRP d. Detailed Scheduling

c. Sales Forecasting d. MRP REF: 83

22. What stage of the production planning process splits Fitter Snackers monthly production planning values into finer time periods? a. Sales Forecasting c. MRP b. BOM d. Demand Management ANS: D

1. Periodically, companies summarize the balances in the books of account. This process is called: ____. a. Cost accounting d. Closing the books b. Account closure e. Statement wrap-up c. Periodic closure ANS: D 2. 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. ANS: A 3. A specialized database used for data analysis purposes is called a: ____. d. document pile a. data warehouse b. drill down store e. data union c. document flow ANS: A 4. Which financial statement shows account balances such as, cash held, amounts owed to the company by customers, the cost of raw materials and finished goods inventory? a. Income statement c. Tolerance group d. Year end report b. Balance sheet ANS: B 5. Assume that a buyer calls a seller to order $3,000 worth of goods and her credit limit is $10,000. If the sellers accounts receivable is already $8,500, how much of the new order will be accepted? a. The entire amount c. No amount d. $10,000 only b. $1,500 only ANS: B 6. ____ are often allocated based on total machine hours or total labor hours. a. Direct costs c. Overhead costs

b. Plant costs ANS: C

d. Manmade costs

7. In ____, activities associated with overhead cost generation are identified and then records are kept on the costs and on the activities. c. ROTM, run of the mill costing a. ABC, activity-based costing b. BOC, backoffice costing d. POC, plant operation costing ANS: A 8. Each transaction in SAP ERP gets its own unique number. This is known as: ____. a. Uniqueness numbering c. Auditing codes d. Unique codes b. Document flow ANS: B 9. This is Fitter Snackers ____.

a. Balance Sheet b. Income Statement ANS: A 10. This is Fitter Snackers ____.

c. Credit Report d. Document Flow

a. Balance Sheet b. Income Statement ANS: B

c. Credit Report d. Document Flow

11. Another name for an income statement is a ____. a. Credit c. Sales d. Revenue b. Profit and Loss ANS: B 12. In an ERP system, the balance sheet and P&L statements are: ____. a. Generated yearly c. Reports b. Not available d. Modules ANS: C 13. What is the advantage to credit management in SAP ERP? a. Marketing and Sales get weekly reports c. Payments are posted daily d. There is no advantage b. The data is in real-time ANS: B

14. Given that the cost of manufacturing NRG-A bars is $0.72 per bar, how much does FS need to charge to make a profit of $0.25? a. $1.00 c. $0.97 b. $0.99 d. $1.25 ANS: C 15. For Fitter Snacker, the sum of direct materials, production overhead, and direct labor is the ____. c. COGP - cost of goods produced a. COGM - cost of goods manufactured b. COGS - cost of goods sold d. COGS - cost of goods shipped ANS: A 16. The following screen in SAP is an example of ____.

a. Production Planning b. MRP ANS: C

c. Document Flow d. Configuration Settings

17. The two key pieces of information for a cost analysis is the direct material and the direct ____. c. Driver a. Labor b. Overhead d. Selling cost ANS: A 18. If Fitter Snackers cost of making a case of bars is $209.82, and there are 24 bars to a box and 12 boxes to a case, how much money does it cost Fitter Snacker to make each individual bar? a. $17.49 c. $8.74 b. $1.00 d. $0.72 ANS: D 1. The tasks associated with managing a company's workforce is now known as ____.

a. Human capital management b. Resource management ANS: A

c. Workforce management d. Hiring management

2. The job of managing salary benefits provided to each employee and confirming that the proper benefits are disbursed to new and current employees falls under the ____ department. a. Accounting and Finance c. Individual d. Administrative b. Human Resources ANS: B 3. To record employee working times, SAP ERP uses ____. a. Punched cards c. CATS (cross application time sheets) b. RFIDs d. Multiple databases ANS: C 4. The parts of an employee's pay that is comprised of base pay, bonuses, gratuities, overtime, sick pay , and vacation allowances are known as ____. a. Payroll run c. Voluntary deductions b. Statutory deductions d. Remuneration elements ANS: D 5. ____ are skills or abilities associated with a position, while ____ are skills or abilities associated with a specific employee. a. Qualifications, requirements c. Duties, tasks d. Tasks, duties b. Requirements, qualifications ANS: B 6. A plan for replacing key employees is known as a ____. a. Duty roster c. Succession plan b. Replacement circular d. Reincarnation study ANS: C 7. SAP's ERP helps the administration of employees taking time off under a government act that allows compensation for family and medical problems. This act, passed in 1993, is the ____. a. FIA c. FMLA b. QOTA d. PROBA ANS: C 8. Which functional part of the organization communicates changes in salaries, benefits and policies to employees? a. Sales and Marketing c. Accounting and Finance b. Supply Chain Management d. Human Resources ANS: D 9. What is the source of Fitter Snackers problems with Human Resources? a. Inaccurate information c. Inconsistent information

b. Out-of-date information ANS: D

d. All of the above

10. 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. c. Final Three a. Short list b. Select group d. Applicants ANS: A 11. What does the acronym, CpH stand for? a. Cost per Health Care Employee b. Cost per Hire ANS: B 12. In February 2007, a federal appeals court approved class-action status for a discrimination lawsuit brought by seven women against the retailer, ____. c. Sears a. Wal-Mart b. Target d. K-Mart ANS: A 13. The process of determining each employees pay is called a ____. c. Cash-out a. Payroll run b. Weekly round-up d. Remunerations session ANS: A 14. The SAP ERP system evaluates the input data to payroll and notes any discrepancies in a(n) ____. a. Payroll report c. Discrepancy list b. Error log d. Off-target list ANS: B 15. An outgrowth of the ____ (referenced in Chapter 5) is that companies must account for the expected costs that occur as a result of long-term incentives such as the exercising of stock options. a. Income Statement c. Consolidated statements b. Balance Sheet d. Sarbanes-Oxley Act ANS: D 1. A graphical representation of a business process is known best as a ____. a. Subject c. Flowchart b. Morh d. Dia-process ANS: C 2. When doing process mapping, one of the most important tasks is to define the ____. These define which activities are to be included in the process. a. Scales c. Legends d. Scopes b. Process boundaries

c. Cost per Head d. Cost per Healthy Worker

ANS: B 3. 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. c. Detail focused charting a. Hierarchical modeling b. Drill down staging d. Magnifying glass charting ANS: A 4. A deployment flowchart is also known as a ____. a. Event process chain flowchart c. ERP flowchart d. Best practices flowchart b. Swimlane flowchart ANS: B 5. In value analysis, which of the following activities should be eliminated? a. Real value c. No value b. Business value ANS: C 6. In value analysis, which of the following activities is defined as value for which the customer is willing to pay? c. No value a. Real value b. Business value ANS: A 7. Which software program automates the execution of business processes? a. SAP Wizard c. Workflow b. ASAP d. Swimlane ANS: C

COMPLETION 1. ____________________ programs are core software used by companies to coordinate information in every area of the business. ANS: Enterprise Resource Planning (ERP) 2. A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer is called a ____________________. ANS: business process 3. The business functions of financial accounting, cost allocation and control, planning and budgeting, and cash-flow management take place in the ____________________ functional area of operation.

ANS: Accounting and Finance (A/F) PTS: 1 REF: 2

4. One example of the business function that happens in the human resource area of operation would be ____________________. ANS: Recruiting and hiring Training Payroll Benefits Government compliance 5. An ____________________ includes the computers, people, procedures, and software that store, organize, and deliver information. ANS: Information systems (IS) 6. Information systems designed so that functional areas share data are called ____________________. ANS: integrated information systems (integrated IS)

7. A shortfall of raw materials is known as a ____________________. ANS: Stockout

8. To avoid stockouts, manufacturers might carry extra raw materials known as ____________________. ANS: Safety stock 1. ____________________ states that the number of transistors on a computer chip doubles every 18 months. ANS: Moores Law 2. When the networks capacity can be expanded by the addition of a server, its called ____________________. ANS: Scalable Scalability

3. The technology to hold data in an organized fashion, and to retrieve that data easily, is the ____________________. ANS: database management system (DBMS) 4. ____________________ software allows a plant manager to plan production and raw materials requirements by working backward from the sales forecast. ANS: MRP 5. The prediction of future sales is the ____________________. ANS: sales forecast 6. ____________________ is the direct computer-to-computer exchange of standard business documents. ANS: Electronic data interchange (EDI)

7. SAP is the abbreviation for ____________________. ANS: Systems Analysis and Program Development

8. In ____________________, third-party software companies are encouraged to develop add-on software products that can be integrated with existing software. ANS: open architecture

9. Old systems are known as ____________________. ANS: legacy systems 10. SAPs biggest competitor is ____________________. ANS: Oracle 11. In an ERP system, all modules access the ____________________. ANS: central database 12. After a company chooses its major modules, it chooses from an assortment of ____________________ options. ANS: configuration 13. R/3s design incorporates ____________________, which means that R/3 designers choose the best, most efficient ways in which business processes should be handled.

ANS: best practices 14. SAPs internal programming language is ____________________. ANS: ABAP 15. An assessment of an investments project value that is calculated by dividing the value of the projects benefits by the value of the projects cost is known as a(n) ____________________. ANS: ROI 16. The statistical and logical analysis of large sets of transaction data is known as ____________________. ANS: data mining 17. ____________________ is the conducting of business over the Internet. ANS: E-commerce 1. The goal of ____________________ is to provide a single face to the customer. ANS: Customer Relationship Management software (CRM software) 2. With ____________________, the R/3 system automatically checks all facilities and determines the most cost-efficient facility to use to meet the customers request in terms of ordering and delivering goods. ANS: Global ATP (Global Available-To-Promise) 3. In the following diagram showing Taking an Order in SAP ERP, what is A? ____________________

ANS: Sold-to party 4. In the following diagram showing Taking an Order in SAP ERP, what is B? ____________________ ANS: PO Number 5. In the following diagram Taking an Order in SAP ERP, what is C? ____________________ ANS: Required Delivery Date 6. In the following diagram Taking an Order in SAP ERP, what is D? ____________________ ANS: Material and Order quantity 1. The ____________________, shown below for Fitter Snacker, is a list of the materials needed to make NRG-A and NRG-B bars.

ANS: Bill of Materials (BOM) 2. ____________________ refers to the process of determining production quantities (for raw materials produced in-house) and order quantities (for purchased items). ANS: Lot sizing 1. What is the following? ____________________

ANS: Fitter Snackers Balance Sheet

2. What is the following? ____________________

ANS: Fitter Snackers Income Statement

3. Any business events that occur between companies and their subsidiaries are known as ____________________. ANS: Intercompany transactions 4. With a properly configured and managed ERP system, there are direct links between the companys ____________________ and individual transactions that make up the statements, so that fraud and abuse can be detected more easily. ANS: financial statements