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1
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
Processes, Systems, and Information (Kroenke/McKinney)
Chapter 6 Supporting Processes with ERP Systems
1) With information silos, the data needed by one process are stored in an information system
designed and used in another process.
Answer: TRUE
Page Ref: 158
Difficulty: Easy
AACSB: Use of information technology
Chapter LO: 1
Course LO: Discuss the role of information systems in supporting business processes
2) Information silos create islands of automation that increase the efficiency and effectiveness of
processes and make process integration easy.
Answer: FALSE
Page Ref: 158
Difficulty: Easy
Chapter LO: 1
3) ERP and EAI systems are referred to as enterprise systems.
Answer: TRUE
Page Ref: 158
Difficulty: Easy
Chapter LO: 1
Course LO: Describe the uses of enterprise systems and enterprise resource planning
4) An EAI system tackles the problem of information silos by providing layers of software that
connect information systems together.
Answer: TRUE
Page Ref: 158
Difficulty: Easy
Chapter LO: 1
5) An EAI system uses a centralized database.
Answer: FALSE
Page Ref: 158
Difficulty: Easy
Chapter LO: 1

2
6) An EAI system appears as an integrated database to the user.
Answer: TRUE
Page Ref: 158
Difficulty: Easy
Chapter LO: 1
7) The major benefit of an EAI system is that it enables organizations to use existing
applications.
Answer: TRUE
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
8) Converting to an EAI system is more disruptive than converting to ERP.
Answer: FALSE
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
9) An ERP product is a suite of software, a database, procedures and a set of processes for
supporting business operations with a single, consistent, information system.
Answer: TRUE
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
10) ERP is so named because it attempts to integrate all the resources of an enterprise into a
single information system.
Answer: TRUE
Page Ref: 159
Difficulty: Easy
Chapter LO: 1

3
11) The primary purpose of an ERP system is to enable a gradual move to an EAI system.
Answer: FALSE
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
12) Businesses used information systems to support their processes well before the Internet was
invented.
Answer: TRUE
Page Ref: 163
Difficulty: Easy
Chapter LO: 2
13) In the 1970s, manufacturing companies used a software called material requirements
planning to efficiently manage inventory, production, and labor.
Answer: TRUE
Page Ref: 163
Difficulty: Easy
Chapter LO: 2
14) Material requirements planning provided financial-tracking capabilities and the opportunity
to schedule equipment and facilities.
Answer: FALSE
Page Ref: 163
Difficulty: Easy
Chapter LO: 2
15) JIT synchronizes manufacturing and the supply of materials.
Answer: TRUE
Page Ref: 163
Difficulty: Easy
Chapter LO: 2

4
16) The Sarbanes-Oxley Act compelled companies to exercise greater control over their financial
processes.
Answer: TRUE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
17) For a product to be considered a true ERP product, it must include applications that integrate
the processes in SCM, manufacturing, CRM, HR, and accounting.
Answer: TRUE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
18) SCM includes procurement, sales order processing, inventory management, supplier
management, and other related activities.
Answer: TRUE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss the role of information systems in supply chain management and
performance
19) CRM includes activities such as manufacturing scheduling, capacity planning, quality
control, and other related activities.
Answer: FALSE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the functions of customer relationship management (CRM) systems
20) Accounting includes activities such cash management and fixed-asset accounting.
Answer: TRUE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2

5
21) An ERP solution cannot be partially implemented.
Answer: FALSE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
22) The customization of ERP software to meet customer requirements without changing
program code is called configuration.
Answer: TRUE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
23) If a new ERP customer has requirements that cannot be met via configuration, then the
customer must turn to an EAI system.
Answer: FALSE
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
24) Application code can be added to any ERP implementation using specific application
languages such as Java.
Answer: TRUE
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
25) Custom software is expensive both initially and in the long-term because it is not guaranteed
to work with newer versions of ERP software.
Answer: TRUE
Page Ref: 165
Difficulty: Easy
Chapter LO: 2

6
26) An ERP solution contains a company's actual operational data.
Answer: FALSE
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
27) Relational databases are modular.
Answer: TRUE
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss best practices for using and managing databases
28) The modularity of a database refers to the impact on its overall structure if tables are added
or removed.
Answer: TRUE
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss best practices for using and managing databases
29) Currently, most ERP products are rented, stored on cloud vendor hardware, and paid for by
use.
Answer: FALSE
Page Ref: 166
Difficulty: Easy
Chapter LO: 2
30) The people involved with an ERP system fall into three roles: users, engineers, and analysts.
Answer: FALSE
Page Ref: 166
Difficulty: Easy
Chapter LO: 2

7
31) In the context of an ERP system, an analyst works for the ERP vendor or a third party and
helps budget, plan, train, configure, and implement the system.
Answer: FALSE
Page Ref: 166
Difficulty: Easy
Chapter LO: 2
32) In the context of an ERP system, users and analysts are both employees of the firm
implementing the system.
Answer: TRUE
Page Ref: 166
Difficulty: Easy
Chapter LO: 2
33) A systems analyst writes additional code where necessary for implementing an ERP system.
Answer: FALSE
Page Ref: 167
Difficulty: Easy
Chapter LO: 2
34) An architect is the high-level planner of an information system who ensures the compatibility
of technology and directs technology toward strategic goals.
Answer: TRUE
Page Ref: 167
Difficulty: Easy
Chapter LO: 2
35) One of the shortcomings of using an ERP product is that data sharing does not occur in real
time.
Answer: FALSE
Page Ref: 167
Difficulty: Easy
Chapter LO: 3

8
36) Implementing an ERP system is harder for an organization that hasn't implemented some
type of enterprise system in the past.
Answer: TRUE
Page Ref: 168
Difficulty: Easy
Chapter LO: 4
37) The configuration decisions that implementation teams must make are usually about item
identifiers, order size, and the structure of the BOM.
Answer: TRUE
Page Ref: 169-170
Difficulty: Easy
Chapter LO: 4
38) Companies of different sizes have one very important difference that has a major impact on
ERP: the availability of skilled business and IT analysts.
Answer: TRUE
Page Ref: 172
Difficulty: Easy
Chapter LO: 5
39) Small organizations expand IT from one person to a small staff, but frequently this staff is
isolated from senior-level management.
Answer: FALSE
Page Ref: 172
Difficulty: Easy
Chapter LO: 5
40) Midsize organizations have a full IT staff that is headed by the chief information officer.
Answer: FALSE
Page Ref: 172
Difficulty: Easy
Chapter LO: 5

9
41) An IT analyst is a business and IT professional who sits on the executive board and is an
active participant in organizational strategic planning.
Answer: FALSE
Page Ref: 172
Difficulty: Easy
Chapter LO: 5
42) International ERP solutions are designed to work with multiple currencies.
Answer: TRUE
Page Ref: 172
Difficulty: Easy
Chapter LO: 5
43) Intel and AMD are some of the top vendors of ERP products.
Answer: FALSE
Page Ref: 173
Difficulty: Easy
Chapter LO: 6
44) Infor is known primarily for its retail-oriented ERP software.
Answer: FALSE
Page Ref: 173
Difficulty: Easy
Chapter LO: 6
45) All the ERP products of Microsoft Dynamics are well integrated with Microsoft Office and
Microsoft's development languages.
Answer: FALSE
Page Ref: 174
Difficulty: Easy
Chapter LO: 6

10
46) Oracle is the gold standard of ERP products and offers the most expensive of ERP products.
Answer: FALSE
Page Ref: 174
Difficulty: Easy
Chapter LO: 6
47) SAP produces and sells cost-specific platforms to speed up the configuration process.
Answer: FALSE
Page Ref: 175
Difficulty: Easy
Chapter LO: 7
48) A configuration is a distinct and logical grouping of processes.
Answer: FALSE
Page Ref: 175
Difficulty: Easy
Chapter LO: 7
49) Prior to SAP, early ERP programs were customized products where companies wrote their
own programs to support their own processes.
Answer: TRUE
Page Ref: 176
Difficulty: Easy
Chapter LO: 7
50) The SAP Business Suite runs on an application platform called NetSuite.
Answer: FALSE
Page Ref: 176
Difficulty: Easy
Chapter LO: 7

11
51) ________ occur(s) when data are isolated and replicated in separated information systems.
A) Information silos
B) Automation
C) Encapsulation
D) Metadata publishing
Answer: A
Page Ref: 158
Difficulty: Easy
Chapter LO: 1
52) An enterprise application integration product is ________.
A) a suite of software applications that tackles the information silo problem by providing layers
of software that connect information systems together
B) a suite of software, a database, procedures and a set of processes for supporting business
operations with a single, consistent, information system
C) a strategy that uses business process management to radically enhance the customer service
experience
D) a suite of applications, a database, and a set of inherent processes for managing all the
interactions with a customer, from lead generation to customer service
Answer: A
Page Ref: 158
Difficulty: Moderate
Chapter LO: 1
53) Which of the following statements is true about an EAI system?
A) It utilizes a centralized database.
B) It provides users with access to metadata files that describe the location of an organization's
data.
C) It appears as an integrated database to the user.
D) It prohibits information silos from communicating with each other and sharing data.
Answer: C
Page Ref: 158
Difficulty: Moderate
Chapter LO: 1

12
54) Which of the following is a function of an EAI system?
A) It provides segregated data.
B) It modifies existing departmental information systems.
C) It requires the implementation of new information systems.
D) It enables a gradual move to ERP.
Answer: D
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
55) The major benefit of an EAI system is that it ________.
A) provides greater returns than an ERP system
B) utilizes centralized databases
C) enables organizations to use existing applications
D) requires the use of formalized procedures
Answer: C
Page Ref: 159
Difficulty: Easy
Chapter LO: 1
56) The primary purpose of an ERP system is ________.
A) customization
B) duplication
C) integration
D) customer acquisition
Answer: C
Page Ref: 159
Difficulty: Easy
Chapter LO: 1

13
57) By the 1970s, manufacturing companies began to use a software called ________ to
efficiently manage inventory, production, and labor.
A) enterprise application integration
B) enterprise resource planning
C) business performance management
D) material requirements planning
Answer: D
Page Ref: 163
Difficulty: Easy
Chapter LO: 2
58) ________ synchronizes manufacturing and supply—manufacturing occurs just as raw
materials arrive.
A) Just-in-case manufacturing
B) Just-in-time delivery
C) Material requirements planning
D) Manufacturing resource planning
Answer: B
Page Ref: 163
Difficulty: Easy
Chapter LO: 2
59) Which of the following federal laws required companies to exercise greater control over their
financial processes?
A) the Gramm–Leach–Bliley Act
B) the Volstead Act
C) the Tower Amendment
D) the Sarbanes-Oxley Act
Answer: D
Page Ref: 164
Difficulty: Easy
Chapter LO: 2

14
60) Which of the following activities is included in supply chain management?
A) sales prospecting
B) bill of materials
C) inventory management
D) quality control
Answer: C
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
Course LO: Discuss the role of information systems in supply chain management and
performance
61) Which of the following activities is included in customer relationship management?
A) procurement
B) marketing
C) bill of materials
D) payroll
Answer: B
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
Course LO: Describe the functions of customer relationship management (CRM) systems
62) Which of the following activities is included in human resources?
A) capacity planning
B) call center support
C) benefits administration
D) cash management
Answer: C
Page Ref: 164
Difficulty: Easy
Chapter LO: 2
63) The customization of ERP software to meet different customer requirements without
changing the program code is called ________.
A) modularity
B) configuration
C) automation
D) process blueprinting
Answer: B
Page Ref: 164
Difficulty: Easy
Chapter LO: 2

15
64) Which of the following is NOT included in an ERP solution?
A) database design
B) operational data
C) initial configuration data
D) stored procedures
Answer: B
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
65) ERP vendors sometimes train an organization's users to become in-house trainers in training
sessions called ________.
A) train the trainer
B) training simulation
C) on-the-job training
D) virtual hands-on training
Answer: A
Page Ref: 165
Difficulty: Easy
Chapter LO: 2
66) Organizations are facing an ERP hardware dilemma as employees are increasingly using
________ to accomplish business activities and processes, including processes that interact with
the company's ERP system.
A) smartphones
B) the Internet
C) teleconferencing
D) personal computers
Answer: A
Page Ref: 166
Difficulty: Easy
Chapter LO: 2

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