Question 1

Data warehouses are useful mechanisms to support daily routine tasks.

Accepted Answer

A) True 
 B)False

Question 2

A limitation of traditional financial metrics is that they primarily tell a story of past events.

Accepted Answer

A) True 
 B)False

Question 3

In the cash-to-cash cycle calculation, if the cost of goods sold per day increases, but all other data such as average inventory and average payables and receivables remain the same, then the value of cash-to-cash cycle will

Accepted Answer

A)  go down
B)  go up
C)  stay the same
D)  May go up or down, but cannot tell without more informationE) C) and D)
F) B) and C) D

Question 4

Microsoft Dynamics is the largest ERP vendor.

Accepted Answer

A) True 
 B)False

Question 5

What set of applications supports the capabilities needed to manage, schedule, pay, hire, and train people who make the organization run?

Accepted Answer

A)  Sales and marketing
B)  Manufacturing
C)  Logistics
D)  Human resourcesE) A) and D)
F) None of the above

Question 6

ERP systems can be inefficient at handling the numerous transactions that document the activities of a company.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an aspect of ERP that determines quality?

Accepted Answer

A)  The software should be multifunctional.
B)  The software should be integrated.
C)  The software should narrowly focus on a single function.
D)  The software must facilitate basic planning.E) A) and C)
F) A) and B)

Question 8

What is the cash-to-cash cycle time if ARd = 6.5 days, Id = 22.2 days, and APd = 4.2 days?

Accepted Answer

A)  32.9 days
B)  19.9 days
C)  16.45 months
D)  24.5 daysE) All of the above
F) C) and D)

Question 9

Transaction processing is real-time means (choose the most appropriate answer)

Accepted Answer

A)  An inventory receipt will show up as soon as it is received, but it could be in the pending approval category.
B)  A production batch completion will be transmitted to all appropriate tables as soon as it is entered.
C)  A customer could call into the order desk to know the status of the order
D)  A customer could know the status of his or her balance with the firm as soon as he/she mails the check.
E)  A, B and C only.F) A) and D)
G) None of the above

Question 10

Defects often occur during changeovers.

Accepted Answer

A) True 
 B)False

Question 11

The supply chain design module provides a centralized overview of the entire supply chain and key performance indicators.

Accepted Answer

A) True 
 B)False

Question 12

A SAP system can accommodate items that must be maintained in inventory while simultaneously supporting JIT efforts for other items.

Accepted Answer

A) True 
 B)False  True

Question 13

In the functional silo approach, the purchasing function typically considers quality a goal.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a benefit of running large batches in a manufacturing setting?

Accepted Answer

A)  Create larger inventories.
B)  Minimize equipment downtime.
C)  Increase equipment and labor utilization.
D)  Improve quality performance.E) B) and D)
F) A) and B)

Question 15

How often are major software changes typically made to ERP?

Accepted Answer

A)  Every 12 months
B)  Every 1 to 2 years
C)  Every 3 to 5 years
D)  Every 5 to 10 yearsE) A) and B)
F) C) and D) C

Question 16

Which of the following is a main benefit of processing transactions in real time?

Accepted Answer

A)  There is no delay in the processing of the transaction.
B)  The amount of detail available in the system is extremely rich.
C)  It allows for immediate analysis, which can be valuable in making improvements.
D)  All of theseE) B) and C)
F) A) and B)

Question 17

A typical ERP system has modules that use the same user interface, similar to that of Microsoft Office products.

Accepted Answer

A) True 
 B)False

Question 18

Drilling down means descending through an existing hierarchy to bring out more and more details from a database.

Accepted Answer

A) True 
 B)False

Question 19

Only manufacturing affects the inventory account.

Accepted Answer

A) True 
 B)False

Question 20

If a small company has average daily sales of $5,000 and accounts receivable of $150,000, what is the average days of accounts receivable?

Accepted Answer

A)  30 days
B)  3.3 days
C)  $5,000/month
D)  33.3 daysE) A) and B)
F) B) and C)

Exam 17: Enterprise Resource Planning Systems

Data warehouses are useful mechanisms to support daily routine tasks.

Correct AnswerverifiedShow Answer

A limitation of traditional financial metrics is that they primarily tell a story of past events.

Correct AnswerverifiedShow Answer

In the cash-to-cash cycle calculation, if the cost of goods sold per day increases, but all other data such as average inventory and average payables and receivables remain the same, then the value of cash-to-cash cycle will

Correct AnswerverifiedD

Microsoft Dynamics is the largest ERP vendor.

Correct AnswerverifiedShow Answer

What set of applications supports the capabilities needed to manage, schedule, pay, hire, and train people who make the organization run?

Correct AnswerverifiedShow Answer

ERP systems can be inefficient at handling the numerous transactions that document the activities of a company.

Correct AnswerverifiedShow Answer

Which of the following is not an aspect of ERP that determines quality?

Correct AnswerverifiedShow Answer

What is the cash-to-cash cycle time if ARd = 6.5 days, Id = 22.2 days, and APd = 4.2 days?

Correct AnswerverifiedShow Answer

Transaction processing is real-time means (choose the most appropriate answer)

Correct AnswerverifiedShow Answer

Defects often occur during changeovers.

Correct AnswerverifiedShow Answer

The supply chain design module provides a centralized overview of the entire supply chain and key performance indicators.

Correct AnswerverifiedShow Answer

A SAP system can accommodate items that must be maintained in inventory while simultaneously supporting JIT efforts for other items.

Correct AnswerverifiedTrue

In the functional silo approach, the purchasing function typically considers quality a goal.

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of running large batches in a manufacturing setting?

Correct AnswerverifiedShow Answer

How often are major software changes typically made to ERP?

Correct AnswerverifiedC

Which of the following is a main benefit of processing transactions in real time?

Correct AnswerverifiedShow Answer

A typical ERP system has modules that use the same user interface, similar to that of Microsoft Office products.

Correct AnswerverifiedShow Answer

Drilling down means descending through an existing hierarchy to bring out more and more details from a database.

Correct AnswerverifiedShow Answer

Only manufacturing affects the inventory account.

Correct AnswerverifiedShow Answer

If a small company has average daily sales of $5,000 and accounts receivable of $150,000, what is the average days of accounts receivable?

Correct AnswerverifiedShow Answer

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D

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What is the cash-to-cash cycle time if AR_d = 6.5 days, I_d = 22.2 days, and AP_d = 4.2 days?

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True

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C

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