Ch.10 – Information Systems Within The | Test Bank + Answers - Test Bank | Introduction to Info Systems 4th Canadian Edition by Rainer and Sanchez by Rainer Prince, Splettstoesser Hogeterp, Sanchez Rodriguez. DOCX document preview.
Chapter 10
Information Systems within the Organization
Question type: True/False
1) The biggest measure of IT success, however, is not whether GM’s in-house IT function is better than that of outside vendors, but whether it’s better than that of its competitors.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: Case 10.1 General Motors Transforms Its Information Technology Strategy
AACSB: Information Technology
Bloomcode: Application
2) The Information systems (IS) of an organization are intended to support internal processes, therefore all information systems must be owned by the organization itself.
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
3) TPSs provide data that can be stored in the organization’s databases.
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
4) The functional area information systems are the most fundamental information systems in the organization.
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Communication
Bloomcode: Comprehension
5) The data processed by transaction processing systems provide the inputs for other organizational information systems.
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
6) Greg is mowing lawns in the neighborhood for the summer. He does not need an information system.
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Analytic
Bloomcode: Analysis
7) In general, organizations try to automate data entry as much as possible.
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
8) HR Information Management System was originally for benefits and tracking vacation.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Analytic
Bloomcode: Knowledge
9) When you make a purchase online, that transaction is an example of batch processing.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
10) Source data automation involves collecting data from sensors.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
11) Functional Area Information Systems support major portions of an enterprise.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Analytic
Bloomcode: Evaluation
12) The information systems for Accounting and Finance could contain control and auditing processes.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Analytic
Bloomcode: Application
13) The POM function within an organization monitors the customer sales activity.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Application
14) An example of a transaction in a HRIS application is adding a new employee.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Application
15) Information systems can be function-specific.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
16) Historically, the functional area information systems were developed independently of one another.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
17) FAIS are not necessary if an ERP system has been installed.
Difficulty: Hard
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
18) Airgas chose to implement SAP “as-is” to adopt the industry’s best practices.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Application
19) Information silos were particularly efficient when business processes crossed functional boundaries in an organization.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
20) Business processes may be located within one functional area or may span multiple functional areas.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Analytic
Bloomcode: Comprehension
21) Best practices are the most successful solutions or problem-solving methods for achieving a business objective.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
22) ERP II systems are considered 3rd generation ERP systems.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
23) Enterprise resource management is an enterprise-wide effort to acquire and retain customers.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
24) Financial management, operations management, and human resource management are extended ERP modules.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Application
25) ERP systems integrate the planning, management and use of all resources of the organization.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Analysis
26) When ERP systems are not appropriate in an organization, then that organization can use an enterprise application integration system.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
27) Organizations that use ERP systems are more agile and adaptive.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
28) Exception reports show a greater level of detail than is included in routine reports.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Analytic
Bloomcode: Evaluation
29) Comparative reports compare things.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Reflective Thinking
Bloomcode: Knowledge
30) Key-indicator reports shows data at a greater level of detail.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
31) Drill down reports are produced at scheduled intervals.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
32) Ad hoc reports are run weekly.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Analytic
Bloomcode: Evaluation
33) ERP systems always provide a competitive advantage because they make a business so much more efficient.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Evaluation
34) An organization has to own all of the information systems it uses.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Synthesis
35) Disney’s Yield Management System (YMS) implemented fixed pricing strategy, based on understanding, anticipating, and influencing consumer behaviour to maximize revenue.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Application
36) A company that implements an ERP system must rework their business processes to meet the procedures established by their ERP systems to gain significant benefits.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Reflective Thinking
Bloomcode: Knowledge
37) ERP systems cannot manage cross departmental processes.
Difficulty: Easy
Learning Objective: Describe the three main business processes supported by ERP systems.
Section Reference: 10.4 ERP Support for Business Processes
AACSB: Information Technology
Bloomcode: Comprehension
Question type: Multiple Choice
38) Which of the following is true?
a) Transactions are only critical to the area they occur in.
b) Transactions can only involve one database.
c) Transactions can only involve one computer.
d) The actual processing of a Transaction has to be standard.
e) Transactions generate a small volume of data.
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Analytic
Bloomcode: Knowledge
39) Which of the following is false?
a) Corporate data is supplied by Transaction processing systems.
b) Information systems are only used by large organizations.
c) Reports from information systems are used in all levels of the organization.
d) Data from TPS systems feeds ERP systems.
e) Information systems within an organization support internal and external processes.
Difficulty: Hard
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Analytic
Bloomcode: Comprehension
40) Which of the following is NOT a requirement for a TPS?
a) Avoid errors
b) Efficiently handle data in high volumes
c) Provide data analysis capabilities
d) Scalability
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
41) Organizational transactions are typically _____ volume, _____, and therefore _____ to computerize.
a) low, repetitive, difficult
b) high, repetitive, easy
c) high, different, difficult
d) low, different, easy
e) high, different, easy
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
42) Business transactions that are processed as they occur is an example of
a) batch processing
b) source data automation
c) OLTP
d) TPS
e) ESS
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
43) ____________ is when business transactions are processed as soon as they occur.
a) Batch processing
b) OLAP
c) OLTP
d) Source data automation
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
44) The most fundamental information systems in an organization are:
a) Office automation systems
b) Decision support systems
c) Functional area information systems
d) Transaction processing systems
e) Business intelligence systems
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
45) General Motors decided _________ was a better strategy because ____________.
a) insourcing; IT specialty companies can deliver technology that is cheaper
b) insourcing; GM can deliver technology that is better aligned to its unique needs
c) outsourcing; IT specialty companies can deliver technology that is cheaper
d) outsourcing; GM can deliver technology that is better aligned to its unique needs
e) None of the above
Difficulty: Medium
Learning Objective: Provide a real-world application of an information system within an organization.
Section Reference: Case 10.1 General Motors Transforms Its Information Technology Strategy
AACSB: Information Technology
Bloomcode: Application
46) Batch processing is when the firm collects data from transactions __________, places them in groups, then prepares and processes the batches ___________.
a) as they occur, as they occur
b) as they occur, periodically
c) periodically, as they occur
d) periodically, periodically
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
47) Calculating and crediting interest to your savings account at your bank once a month, it is called a:
a) Process
b) Function
c) Calculation
d) Transaction
e) Decision
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
48) When interest is credited to your savings account at your bank, it is called a:
a) Process
b) Function
c) Calculation
d) Transaction
e) Decision
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
49) Data that have been processed by the organizations _____ are inputs into the organization’s database.
a) office automation systems
b) Transaction processing systems
c) decision support systems
d) digital dashboards
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
50) Which of the following is not a characteristic of a transaction processing system?
a) Small volumes of data are processed
b) TPS functions tend to be standard
c) Provide input for other business systems
d) High level of accuracy, data integrity, and security
e) Handle data in high volumes
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
51) Which of the following is not an example of a transaction?
a) A person hired
b) A payroll check generated
c) A service sold
d) Printing a report
e) Checking out at Walmart
Difficulty: Hard
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
52) Greg is mowing lawns in the neighborhood for the summer. Which of the following is not an example of a transaction he has in his business?
a) Adding a new client to his list.
b) Mowing a client’s lawn
c) Buying gas for his mower
d) Driving to the client’s house
e) Getting paid by the client
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
53) Which of the following is false?
a) TPS need large computers to process the transactions.
b) Business transactions can be processed when they occur.
c) Business transactions can be processed after they occur.
d) Data for transactions can be collected by sensors.
e) A transaction is a business event.
Difficulty: Hard
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
54) Which of the following is not a function of functional area information systems?
a) Providing information to managers in the functional areas
b) Supporting the managerial tasks of planning, organizing, and controlling operations
c) Providing information mainly in the form of reports
d) Providing data from business events to the corporate database
e) Providing analysis capabilities to middle level managers and staff
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
55) Functional area information systems provide ___________ mainly to lower- and middle-level managers in the functional areas via a variety of reports.
a) data
b) knowledge
c) information
d) wisdom
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
56) Which of the following is not a process within an information system for Accounting and Finance?
a) Budgeting
b) Managing Currencies
c) Inventory management
d) Auditing
e) Expense management
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
57) The activities below are supported by a Human Resources Functional Information Systems except:
a) Training
b) Employee records
c) Benefits administration
d) Performance evaluation
e) Quality control
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
58) Which of the following is not a process within an information system for Human Resource Management?
a) Benefits administration
b) Firing decisions
c) Peer evaluations
d) Recruitment
e) Training
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
59) The “virtual close” is part of the _________ functional area.
a) Accounting and Finance
b) Human Resource Management
c) Marketing
d) Production/Operations Management
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
60) Which of the following is false?
a) Inventory management determines how much inventory to order.
b) Large companies sometimes allow their vendors to manage their inventory.
c) The POM function within an organization monitors sales.
d) Quality control used by manufacturing units uses metrics.
e) Computer systems can be used to integrate all aspects of product design.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
61) MRP is part of the ______________ functional area.
a) Accounting and Finance
b) Human Resource Management
c) Marketing
d) Production/Operations Management
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
62) Which of the following is false?
a) ERP systems are an evolution of functional area information systems.
b) ERP systems look the same to users as functional area information systems.
c) ERP systems have much the same functionality as functional area information systems.
d) ERP systems produce the same reports as functional area information systems.
e) ERP systems use the same data as functional area information systems.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
63) Enterprise resource planning systems take a(n) _____ view of the overall organization.
a) User’s
b) Management
c) Functional
d) Business process
e) Transactional
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
64) _________ integrate the planning, management and use of all resources of the organization.
a) ERP systems
b) Expert systems
c) FAISs
d) TPSs
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
65) _____ integrate the planning, management, and use of all of an organization’s resources, and are designed to tightly integrate the functional areas of the organization.
a) Transaction processing systems
b) Supply chain management systems
c) Functional area information systems
d) Enterprise resource planning systems
e) Corporate extranets
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
66) Which of the following is false?
a) Functional area information systems were usually developed independently.
b) Functional area information systems easily communicate with each other.
c) ERP systems are designed to integrate business processes.
d) ERP systems use a common database.
e) ERP systems integrate functional areas within an organization.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
67) ERP systems are designed to break down ____________.
a) expert systems
b) FAISs
c) information silos
d) TPSs
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Reflective Thinking
Bloomcode: Comprehension
68) ______________________ take a business process view of the overall organization to integrate the planning, management, and use of all of an organization’s resources, employing a common software platform and database.
a) Enterprise resource planning systems
b) Customer relationship management system
c) Supply chain management systems
d) Financial Management Systems
e) None of the above
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Communication
Bloomcode: Comprehension
69) The characteristics of ERP systems include all of the following except:
a) Integrating the planning, management, and use of all resources of the organization
b) Providing information necessary to control the business processes of the organization
c) Including a set of interdependent software modules
d) Typically fitting an organization’s existing business processes
e) They are expensive and time-consuming
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
70) Enterprise resource planning systems are very _____ software products, meaning that companies typically have to change their _____ to accommodate how the software functions.
a) unstructured, business processes
b) structured, reporting relationships
c) structured, accounting processes
d) unstructured, inventory control
e) structured, business processes
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Communication
Bloomcode: Comprehension
71) The ________ generation of ERP was designed to address back-office business processes.
a) 1st
b) 2nd
c) 3rd
d) 4th
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
72) _____ are interorganizational ERP systems that provide Web-enabled links between an organization’s key business systems and its customers, suppliers, business partners, and others.
a) Functional area information systems
b) Supply chain management systems
c) Transaction processing systems
d) Office automation systems
e) ERP II systems
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
73) _____ are the most successful solutions or problem-solving methods for achieving a business objective.
a) Business functions
b) Best practices
c) Optimal strategies
d) Business processes
e) Enterprise solutions
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Analytic
Bloomcode: Knowledge
74) Which of the following is NOT a benefit Airgas received by implementing SAP?
a) Better price management
b) Competitiveness
c) Leaner operating costs
d) Small increase in revenue
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Communication
Bloomcode: Knowledge
75) The drawbacks of ERP systems include all of the following except:
a) They are complex
b) They are expensive
c) They are time-consuming to implement
d) Companies may need to change existing business processes to fit the software
e) They consist of modules
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
76) Which of the following is a benefit of ERP systems?
a) Business process adaptation
b) Complexity
c) Cost
d) Flexibility
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
77) Which of the following was not included in early ERP systems?
a) Sales and Marketing
b) Inventory Control
c) Order Entry
d) Distribution
e) Raw materials management
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
78) Which of the following is a limitation of ERP systems?
a) Cost
b) Decision-making
c) Efficiency
d) Flexibility
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
79) Which of the following is false about ERP II systems?
a) They utilize the Web.
b) They include human resources processes.
c) Functionality is delivered as e-business suites.
d) They support internal- facing applications as well as external-facing applications.
e) These ERP systems have no optional modules.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
80) Which of the following is false?
a) Breaking down functional silos makes an organization more adaptive.
b) An organization doesn’t have to use the business processes coded into the ERP.
c) ERP systems change an organization’s business processes.
d) ERP systems are time consuming to implement.
e) ERP systems require functional areas to work together.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
81) Which of the following has not been identified as a reason for ERP implementation failure?
a) Failure to include affected employees in planning
b) The complexity of the planning
c) Lack of documentation
d) Insufficient training
e) No change management processes
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
82) A __________ report summarizes the performance of critical activities.
a) comparative
b) drill-down
c) key indicator
d) summary
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
83) _____ reports contain special information not found in routine reports.
a) Ad hoc
b) Summary
c) Drill-down
d) Key-indicator
e) Exception
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
84) __________ reports allow users to click on an item in a report and to be able to access underlying details about that item.
a) Comparative
b) Detailed
c) Drill-down
d) Summary
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Reflective Thinking
Bloomcode: Evaluation
85) _____ reports are produced at scheduled intervals.
a) Ad hoc
b) Routine
c) Exception
d) Detailed
e) Key indicator
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
86) __________ reports include only information that falls outside certain threshold standards.
a) Comparative
b) Exception
c) Key indicator
d) Summary
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Analysis
87) _____ reports summarize the performance of critical activities.
a) Ad hoc
b) Routine
c) Exception
d) Detailed
e) Key indicator
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
88) Kathy has taken a job with her ideal company and is excited to start in their sales department. During orientation, she is told that the company is very proud of their ERP system from SAP. Looking at the list of modules the company has, Kathy wonders which one she won’t be using. From the list below, which one would you tell Kathy is the one she won’t be using.
a) Customer relationship management
b) Human resource management
c) Business intelligence
d) Operations management
e) E-Business
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Synthesis
89) When the chief financial officer of a company wants a report on business units which have spent 10 percent more than their allotted budget, she would be requesting which type of report?
a) Ad hoc
b) Routine
c) Exception
d) Detailed
e) Key indicator
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Analysis
90) _____ reports include only information that falls outside certain threshold standards.
a) Ad hoc
b) Routine
c) Exception
d) Detailed
e) Key indicator
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
91) Which of the following is NOT an ad hoc report?
a) Comparative report
b) Drill-down report
c) Key-indicator report
d) Monthly report
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
92) To effectively manage by exception (i.e., use exception reports), the company must first create:
a) Performance standards
b) Best practices
c) User information requirements
d) A database
e) Employee evaluation guides
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
93) Greg is mowing lawns in the neighbourhood for the summer. Which type of report would he use to see which of his clients still owe him money?
a) Ad hoc
b) Summary
c) Exception
d) Detailed
e) Key indicator
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Application
94) Greg is mowing lawns in the neighborhood for the summer. Which type of report would he used to see if a particular client still owes him money?
a) Ad hoc
b) Routine
c) Exception
d) Detailed
e) Key indicator
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
95) Pizza Pizza allowed customers to design their own pizzas via iPhone to:
a) Increase sales
b) Decrease costs
c) Increase costs
d) A and b
e) A and c
Difficulty: Easy
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Application
96) Which of the following is false regarding Disney’s YMS?
a) YMS followed fixed pricing strategy.
b) YMS used consumer behavior data for pricing.
c) YMS anticipated consumer behavior for pricing.
d) YMS used factors that influence consumer behavior for pricing.
e) None of the above
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Application
97) Which of the following is true?
a) Implementing an ERP system will maintain a competitive advantage.
b) Implementing an ERP system will allow a company to operate faster than their competition.
c) The IT costs of an ERP implementation goes down over time.
d) Customizing an ERP system is permitted.
e) The benefits of an ERP implementation go down over time.
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
98) The ______________ process originates in the warehouse and ends in the accounting department.
a) procurement
b) fulfillment
c) production
d) None of the above
Difficulty: Easy
Learning Objective: Describe the three main business processes supported by ERP systems.
Section Reference: 10.4 ERP Support for Business Processes
AACSB: Information Technology
Bloomcode: Knowledge
99) The ____________ process originates in the sales department and ends in the accounting department.
a) procurement
b) fulfillment
c) production
d) None of the choices are correct
Difficulty: Easy
Learning Objective: Describe the three main business processes supported by ERP systems.
Section Reference: 10.4 ERP Support for Business Processes
AACSB: Information Technology
Bloomcode: Knowledge
100) Which of the following activities does not occur within the order fulfillment process?
a) The sales department receives a customer inquiry and issues a quotation indicating price and availability.
b) The sales department forwards a sales order to the warehouse.
c) The warehouse forwards a purchase requisition in order to buy goods from a vendor.
d) The warehouse prepares the shipment and produces internal documentation.
e) The accounting department issues an invoice to the customer.
Difficulty: Medium
Learning Objective: Describe the three main business processes supported by ERP systems.
Section Reference: 10.4 ERP Support for Business Processes
AACSB: Information Technology
Bloomcode: Comprehension
101) General Motors created a(n) ____________________ to smooth out its quality assurance process.
a) TPS
b) ERP
c) Data warehouse
d) Data mart
e) None of the above
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: Case 10.1 General Motors Transforms Its Information Technology Strategy
AACSB: Information Technology
Bloomcode: Application
102) Which of the following is NOT an inter-organizational system?
a) TPS
b) ERP
c) CRM
d) SCM
e) None of the above
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
103) ERP ____________ systems have the capability to place automatic requests to buy products from suppliers in real time.
a) AI
b) ERP
c) CRM
d) SCM
e) None of the above
Difficulty: Easy
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Knowledge
Question type: Essay
104) Differentiate between transaction processing systems and functional area information systems.
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
105) Differentiate between batch processing and online transaction processing.
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Evaluation
106) Greg is mowing lawns in the neighborhood for the summer. How could he use source data automation to make data entry easier?
Difficulty: Medium
Learning Objective: Explain the purpose of transaction processing systems
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Comprehension
107) Explain how information systems for accounting and finance support an organization.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
108) Explain how information systems for production operations management support an organization.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
109) Explain how information systems for human resource management support an organization.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
110) Explain how information systems for marketing and sales support an organization.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
111) Define enterprise resource planning systems and discuss why they were developed.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Comprehension
112) Describe the various reports that can be obtained from functional area information systems.
Difficulty: Medium
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
1139) Contrast routine reports and drill-down reports.
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Analysis
114) Define source data automation and describe why this process is so important to transaction processing systems.
Difficulty: Hard
Learning Objective: Explain the purpose of transaction processing systems.
Section Reference: 10.1 Transaction Processing Systems
AACSB: Information Technology
Bloomcode: Knowledge
115) Discuss why functional area information systems would have been built independently of one another, resulting in information silos. Explain the limitations of that approach.
Difficulty: Hard
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Comprehension
116) Discuss the reasons why ERP systems evolved and what organizations hope to gain by implementing them.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
117) Differentiate between ERP systems and ERP II systems.
Difficulty: Medium
Learning Objective: Identify advantages and drawbacks to businesses of implementing an enterprise resource planning system.
Section Reference: 10.3 Enterprise Resource Planning Systems
AACSB: Information Technology
Bloomcode: Evaluation
118) What are ad-hoc (on-demand) reports? Why does an organization need to be able to run ad-hoc reports?
Difficulty: Easy
Learning Objective: Describe the types of support that information systems can provide for each functional area of the organization.
Section Reference: 10.2 Functional Area Information Systems
AACSB: Information Technology
Bloomcode: Knowledge
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