Accounting Information Systems 10th Edition Gelinas Test Bank

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Accounting Information Systems 10th Edition Gelinas Test Bank

 

Chapter 2—Enterprise Systems
TRUE/FALSE
1. One of the primary goals of implementing an ERP system is to standardize systems across multiple
locations and multiple divisions.
ANS: T PTS: 1
2. Submitting a purchase order is a business event but creating an employee record is not a business
event.
ANS: F PTS: 1
3. Early adopters of ERP systems were in the business of making products.
ANS: T PTS: 1
4. ERP systems have proved to be quite easy to install and in short periods of time.
ANS: F PTS: 1
5. Enterprise systems potentially integrate the business process functionality and information from all of
an organization’s functional areas.
ANS: T PTS: 1
6. With an enterprise system an organization will conduct business in a more costly manner.
ANS: F PTS: 1
7. An add-on software module in an enterprise system might be a customer relationship management
system (CRM).
ANS: T PTS: 1
8. The dominant player in the large system ERP arena is Microsoft.
ANS: F PTS: 1
9. SAP has a primary focus on large Fortune 500 type companies.
ANS: T PTS: 1
10. Microsoft Dynamics and Sage Group focus on small and mid market sized companies.
ANS: T PTS: 1
11. Customer relationship management (CRM) software builds and maintains an organization’s
customer-related database.
ANS: T PTS: 1
12. Customer relationship management (CRM) software aggregates, manages, and retains data across the
entire organization for the identification, acquisition, and retention of vendors to maximize the benefits
of those relationships.
ANS: F PTS: 1
13. If you have made a Web purchase such as with Amazon.com you have experienced some of the
functionality of a CRM system where the vendor keeps track of your name, address, and purchases.
ANS: T PTS: 1
14. Customer relationship management (CRM) functionality includes procurement and contract
management.
ANS: F PTS: 1
15. Customer self service (CSS) software is often an extension of CRM software.
ANS: T PTS: 1
16. Supply chain management (SCM) software helps plan and execute steps such as demand planning,
acquiring inventory, manufacturing, distributing, and selling the product.
ANS: T PTS: 1
17. Supplier relationship management (SRM) software manages the interactions with the organization’s
that supply the goods and services to an enterprise.
ANS: T PTS: 1
18. Middleware is a software product that connects two or more separate applications or software
modules.
ANS: T PTS: 1
19. Enterpriseware might be used to stitch together a number of legacy systems, an enterprise system,
best-of-breed applications, and Web-based applications.
ANS: F PTS: 1
20. An Application Programming Interface (API) is a means for connecting to a system or application
provided by the developer of that application.
ANS: T PTS: 1
21. Microsoft Dynamics Snap line of tools is an example of an Application Programming Interface.
ANS: T PTS: 1
22. Enterprise application integration (EAI) links together two or more systems and allows them to work
together.
ANS: T PTS: 1
23. Product life-cycle management (PLM) software manages product data from design through
manufacture, and disposal.
ANS: T PTS: 1
24. When choosing modules for an organization’s ERP system, it is generally best to select them all from
a single vendor.
ANS: F PTS: 1
25. DreamWeaver is a Web services platform from SAP that can be used to build applications that
integrate business processes and databases from a number of sources within and between
organizations.
ANS: F PTS: 1
26. Business process management (BPM) provides a comprehensive method for integrating manual and
automated internal processes, applications, and systems, as well as integration to external partners and
services.
ANS: T PTS: 1
27. With a best-of-breed approach an organization can minimize the number of different software modules
employed to implement an enterprise system.
ANS: F PTS: 1
28. Because of the enormous implementation costs, only very large organizations can afford ERP systems.
ANS: F PTS: 1
29. The data captured as business events occur should be sufficient for someone who was not a party to
the event to understand and reconstruct what happened.
ANS: T PTS: 1
30. The value chain is a chain of activities performed by the organization to transform outputs into inputs
valued by the customer.
ANS: T PTS: 1
31. An organization creates a competitive advantage by creating less value for its customers than does its
competition.
ANS: F PTS: 1
32. Supporting activities of the value chain include activities directly involved with marketing, producing,
selling, and delivering the product or service to the customer.
ANS: F PTS: 1
33. Primary activities of the value chain provide infrastructure such as procurement, information
technology, human resources, and accounting.
ANS: F PTS: 1
34. The value chain works to separate the functional activities or silos of the organization.
ANS: F PTS: 1
35. Dell’s value chain takes raw materials, manufactures computers and other products, and delivers them
to customers in a timely manner at an attractive price.
ANS: T PTS: 1
36. The activities in the value chain, the value activities, are business processes that convert inputs to
valued outputs.
ANS: T PTS: 1
37. In a disaggregated information system, the customer will be notified immediately whether the item is
on the shelf and not committed to another customer.
ANS: F PTS: 1
38. Telling the customer when they will receive an item is known as available to promise (ATP).
ANS: T PTS: 1
39. A character is a basic unit of data such as a letter, number, or special character.
ANS: T PTS: 1
40. A field is a collection of related characters that comprise an attribute, such as a customer number or
name.
ANS: T PTS: 1
41. A record is a collection of related data fields pertaining to a particular entity or event.
ANS: T PTS: 1
42. The credit limit within a customer record always provides unlimited authorization to accept a customer
order.
ANS: F PTS: 1
43. Segregation of duties includes separating the sales and credit departments.
ANS: T PTS: 1
44. Generally, when processing a customer order, one does not need to know the total price of the goods
before credit authorization can be made.
ANS: F PTS: 1
45. In an enterprise system, once a customer order is completed, the purchasing function can be
immediately informed that the merchandise has been sold and may need to be replenished.
ANS: T PTS: 1
46. The Controlling module of the SAP system handles internal accounting and profitability analysis.
ANS: T PTS: 1
47. An enterprise systems centralized database can make data, such as inventory data, visible throughout
the organization.
ANS: T PTS: 1
48. The correct sequence of the three steps in the sales and distribution process are (1) order entry (2)
shipment process and (3) billing process.
ANS: T PTS: 1
49. The correct sequence of the three steps in the materials management process is (1) record vendor
invoice (2) create purchase order (3) receive the goods.
ANS: F PTS: 1
50. The bottom line is that without integrated information systems organizations have difficulty being
managed on a day-to-day basis and being successful in the long run.
ANS: T PTS: 1
51. The financial accounting module integrates with the sales and distribution and materials management
modules.
ANS: T PTS: 1
52. The purchase-to-pay process includes the events surrounding the sale of goods to a customer, the
recognition of revenue, and the collection of the customer payment.
ANS: F PTS: 1
53. The order-to-cash process includes events surrounding the purchase of goods from a vendor, the
recognition of those costs, and the payment to the vendor.
ANS: F PTS: 1
MULTIPLE CHOICE
1. Organizations install enterprise systems
a. to differentiate themselves from competitors
b. to reduce costs of conducting business
c. to improve performance
d. all of the above
ANS: D PTS: 1
2. Core applications of an ERP are
a. financial accounting
b. materials management
c. sales and distribution
d. all of the above
ANS: D PTS: 1
3. Which of the following is usually not part of an ERP’s core applications?
a. legacy systems
b. financial accounting
c. material management
d. sales and distribution
ANS: A PTS: 1
4. The enterprise system might facilitate the purchase of office equipment by all of the following except
a. providing an electronic order form (a purchase requisition)
b. assisting the vendor with the selection of the appropriate purchase order
c. routing the order to appropriate authorities for specific approval
d. making data available for management analysis
ANS: B PTS: 1
5. The most dominant player in the ERP market for large companies is
a. Oracle
b. Sage
c. SAP
d. Microsoft
ANS: C PTS: 1
6. Sales force automation software
a. automates order processing
b. monitors inventory
c. assists with employee performance evaluations
d. all of the above
ANS: D PTS: 1
7. An application program interface (API)
a. is an approach that combines processes, software, standards and hardware to link two or
more systems together
b. is a means for connecting to a system or application provided by the application developer
c. streamlines the process between an enterprise and its customers
d. joins activities together into an end-to-end business process
ANS: B PTS: 1
8. Software that builds and maintains an organization’s customer-related database is known as
a. customer relationship management (CRM) software
b. customer self service (CSS) software
c. sales force automation (SFA) software
d. supply chain management (SCM) software
ANS: A PTS: 1
9. Software that allows an organization’s customers to complete inquiry without the aid of the
organization’s employees is known as
a. customer relationship management (CRM) software
b. customer self service (CSS) software
c. sales force automation (SFA) software
d. supply chain management (SCM) software
ANS: B PTS: 1
10. Software that automates sales tasks such as order processing and tracking is known as
a. customer relationship management (CRM) software
b. customer self service (CSS) software
c. sales force automation (SFA) software
d. supply chain management (SCM) software
ANS: C PTS: 1
11. Software that helps execute steps such as demand planning, acquiring inventory, manufacturing,
distribution, and sales is known as
a. customer relationship management (CRM) software
b. customer self service (CSS) software
c. supplier relationship management (SRM) software
d. supply chain management (SCM) software
ANS: D PTS: 1
12. Software that manages the interactions with the organization’s that supply the goods and services to an
enterprise is known as
a. customer relationship management (CRM) software
b. customer self service (CSS) software
c. supplier relationship management (SRM) software
d. supply chain management (SCM) software
ANS: C PTS: 1
13. Software that manages the product, beginning with the design of the product, continuing through
manufacture and culminating in the disposal of the product, is known as
a. product lifecycle management (PLM) software
b. product relationship management (PRM) software
c. product self service (PSS) software
d. supplier relationship management (SRM) software
ANS: A PTS: 1
14. Supply chain management (SCM) software
a. is typically under the control of external partners in the chain.
b. helps plan and execute demand planning; acquiring inventory; and manufacturing,
distributing, and selling a product.
c. cannot be integrated into an overall ERP.
d. none of the above
ANS: B PTS: 1
15. Some third-party modules can extract data from
a. legacy systems only
b. ERP systems only
c. both legacy systems and ERP systems
d. neither legacy systems nor ERP systems
ANS: C PTS: 1
16. Which of the following tracks a product from design, continuing through manufacture, and
culminating with the disposal of the product at the end of its life?
a. supply chain management (SCM)
b. value chain
c. product life cycle management (PLM)
d. none of the above
ANS: C PTS: 1
17. Technology that can connect together ERP systems and third party add-on modules is called
a. supply chain software
b. enterprise application integration (EAI)
c. EDP systems
d. none of the above
ANS: B PTS: 1
18. Enterprise systems support an organization by:
a. facilitating the functioning of an organization’s operations
b. retaining records about business events
c. storing data useful for decision making
d. all of the above
ANS: D PTS: 1
19. The enterprise system might help purchase office equipment by
a. connecting directly to the enterprise system of the equipment vendor
b. verifying that appropriate approvals have been obtained
c. providing an electronic order form
d. all of the above
ANS: D PTS: 1
20. A collection of entity/event instances is a
a. record
b. table
c. field
d. character
ANS: B PTS: 1
21. Business events include
a. creating a new employee record
b. receiving a payment from a customer
c. submitting a purchase order to a vendor
d. all of the above
ANS: D PTS: 1
22. The general term for software that connects third-party modules to ERP systems is known as
a. DreamWeaver
b. Middleware
c. Microsoft
d. NetWeaver
ANS: B PTS: 1
23. Software packages that can be used for the core systems necessary to support enterprise systems.
a. Application Programming Interface (API) systems
b. Business Process Management (BPM) systems
c. Enterprise Resource Planning (ERP) systems
d. Event-driven architecture (EDA) systems
ANS: C PTS: 1
24. This provides a comprehensive method for integrating manual and automated internal processes,
applications, and systems, as well as integration to external partners and services.
a. Application Programming Interface (API)
b. Business Process Management (BPM)
c. Enterprise Resource Planning (ERP)
d. Event-driven architecture (EDA)
ANS: B PTS: 1
25. Primary activities of the value chain include
a. Accounting
b. Human Resources
c. Procurement
d. Production
ANS: D PTS: 1
26. Supporting activities of the value chain include
a. Accounting
b. Marketing
c. Production
d. Sales
ANS: A PTS: 1