Enterprise Resource Planning (ERP) MCQs
Enterprise Resource Planning (ERP) MCQs
Answer these 100+ Enterprise Resource Planning (ERP) MCQs and assess your grip on the subject of Enterprise Resource Planning (ERP).
Scroll below and get started!
1: How many business functionalities can an ERP package handle?
A. Three
B. Two
C. All
D. One
2: What is the technology that is used to publish content to the web and collaborate under a single server?
A. Server
B. ERP
C. Interface
D. Sharepoint
3: What are most organizations implementing or planning to implement?
A. Complex software
B. Simple software
C. Separate software solutions
D. Packaged software solutions
4: What is a traditional business system also called?
A. Modern system
B. Advanced system
C. Effective system
D. Legacy system
5: In ERP, what does BI represent?
A. Buyer Information
B. Business Installation
C. Budget Information
D. Business Intelligence
6: What does DBMS represent?
A. Database Material System
B. Database Management System
C. Database Movement System
D. Duplicate Billing Management System
7: What does ERP stand for?
A. Enterprise Resource Planning
B. Enterprise Report Planning
C. Extra Resource Planning
D. Enterprise Review Planning
8: True or False? A business "process" may involve activities from more than one business "functional area"
A. False
B. True
9: The technology used to manage organization's customers relationships is known as:
A. ERP
B. SCM
C. LAN
D. CRM
10: When the source code is made available to general public for use and modification, it is known as:
A. Closed Source
B. Flexible Code
C. Support Code
D. Open Source
11: Which factor is most important to consider when implementing an ERP application?
A. Training requirements
B. Meets business strategy and requirements
C. Find the lowest cost ERP application
D. Consulting partner to implement
12: Which area is the Financial Module responsible for?
A. Define Strategy Group
B. Cash Flow Management
C. Create Purchase Order
D. Product Planning
13: Which module in ERP system is used to manage manufacturing processes?
A. Human Capital
B. Sales and Distribution
C. Transportation
D. Material Requirements Planning
14: Which is NOT a financial business function that is supported by ERP?
A. Raising capital
B. Accounts Receivable
C. General ledger
D. Accounts payable
15: What would be a potential reason for an ERP software implementation to fail?
A. Hardware Issues
B. Software issues
C. People issues
D. All of these
16: Which is the first phase in ERP implementations?
A. Going live
B. Defining solutions
C. Executing the work
D. Understanding the problem
17: How do we measure the numeric figures against performance measures?
A. Annual Reports
B. Stakeholders Review
C. Statutory Reports
D. Key Performance Indicators
18: Which area is Manufacturing and Production is a key function?
A. Human Resources
B. Accounting and Finance
C. Supply Chain Management
D. Finance
E. Marketing and Sales
19: What is an information system that allows data to be shared throughout the organization called?
A. Unrestricted
B. Unintegrated
C. Integrated
D. Bounded
20: Which of the following is NOT an advantage of ERP?
A. Revenue tracking, from invoice through cash receipt
B. Sales forecasting, which allows inventory optimization
C. Order tracking, from acceptance through fulfillment
D. Decentralized business data
21: What is the terminlogy used for old systems?
A. Legacy systems
B. Previous systems
C. Preceding systems
D. Heritage systems
22: What system involves activities to enable transfer of products and services from supplier to customer?
A. Supply Chain
B. Customer Relationship
C. Transport
D. Movement
23: Which is correct about ERP?
A. Inexpensive to implement
B. Automates and integrates the majority of business processes
C. Existed for over a decade
D. Does not integrate well with functional areas
24: Which of the following is NOT a typical cost associated with ERP implementation?
A. Process rework
B. Consulting fees
C. Leadership buy-in
D. Integration and Testing
25: What is the process of analyzing step by step program code and fixing any encountered problems called?
A. Reviewing
B. Testing
C. Scoping
D. Debugging
26: Which of the following is NOT another name of ERP?
A. Employee relationship plan
B. Integrated Enterprise system
C. Enterprise system
D. Material requirement planning (MRP)
27: All of the following describes an ERP system, EXCEPT:
A. Enable people in different business areas to communicate
B. Provides foundation for collaboration between departments
C. Decreases worker productivity and efficiency of processes
D. Widely adopted in large organizations to store critical knowledge used to make decisions that drive organization performance
28: What task should companies conduct before implementing ERPs?
A. Survey
B. Test
C. Case study
D. Feasibility study
29: What is BPR in an ERP system?
A. Business Policies Reframing
B. Business Procedure Reengineering
C. Business Process Reengineering
D. Budget Proposal Reporting
30: Who are the primary users of ERP systems?
A. Sales, marketing, customer service
B. Customers, resellers, partners, suppliers, and distributors
C. Accounting, Finance, Logistics and Production
31: Which of the following automates business process execution?
A. Swimlane
B. Flowchart
C. Wizard
D. Workflow
32: What does EDI stand for?
A. Electronic Data Interchange
B. Environmental Data Interchange
C. Enormous Data Interchange
D. External Data Interface
33: Which is NOT a critical success factor for successful implementation of ERP system
A. Top management support
B. Competence of ERP staff
C. User training
D. Number of ERP application releases
34: In an ERP environment, what does MDM mean?
A. Most Data Management
B. Measurable Data Management
C. Middle Data Measurement
D. Master Data Management
35: Which of the following is true of ERP?
A. Low start up cost
B. Non time consuming
C. Low maintenance cost
D. Requires intensive employee training
36: All of the following are advantages of ERP, EXCEPT:
A. Requires major changes in company and process to implement
B. Creates commonality of databases
C. Increases communications and collaboration worldwide
D. Helps integrate multiple sites and business units
37: All the following are major reasons why companies would undertake ERP, EXCEPT:
A. Follow competitors IT strategy
B. Standardize HR information
C. Standardize manufacturing processes
D. Integrate financial data
38: Which system in ERP includes risk management and access controls to promote corporate accountability?
A. Governance Risk & Compliance
B. Manager Self Service
C. High Performing Asset
D. Accounting & Auditing
39: What options in ERP allow businesses to customize the modules to meet their needs?
A. Optional
B. Modularity
C. Processing
D. Configuration
40: Which is TRUE about Enterprise Resource Planning (ERP)?
A. An advanced MRP II system that ties-in customers and suppliers
B. Not currently practical
C. Severely limited by current MRP computer systems
D. Not related to MRP
41: What are software, computers, procedures alongwith human resources used to store data in organization called?
A. Information System
B. Data Maintenance
C. CPU
D. Processing System
42: Which technology is key to cloud computing?
A. Standardization
B. ERP
C. Microsoft
D. Virtualization
43: In order for an ERP implementation to be successful, all the following must be completed successfully, EXCEPT
A. Test the application
B. Continue using same processes
C. Change Management activities
D. Project management in every phase
44: What does MRP stand for?
A. Management Reaction Planning
B. Manufacturing Resource Planning
C. Masters Resources Production
D. Materials Requirements Planning
45: What is the direct computer-to-computer exchange of standard business document known as?
A. Email
B. MRP
C. Workflow
D. EDI
46: ERP systems integrate all business management functions but does NOT include:
A. Accounting and finance
B. Planning
C. Human resources
D. Inventory/materials management
E. Process improvement
47: What is the most important step of an ERP implementation?
A. Installing
B. Testing
C. Gap analysis
D. Training
48: What is at the heart of any ERP system?
A. Database
B. Customers
C. Employees
D. Information
49: Which concept is used to validate that processes achieved in ERP are the best in the industry?
A. Success Rate
B. Benchmarking
C. Localization
D. Standardization
50: What is considered the “third generation of manufacturing software.”?
A. MRP II
B. Y2K
C. ERP
D. MRP
51: What is the main drawback of legacy systems?
A. More modules
B. Less effectiveness
C. No integration
D. High cost
52: What is the terminology used to understand the present business situation?
A. Present
B. Now
C. As Is
D. Current
53: Which is a common mistake that companies resort to when selecting an ERP system?
A. Over-emphasis on system cost
B. Complete set of requirements
C. Non biased selection
D. Not replying on vendor demos
54: In which of the following are phase roles identified and responsibilities assigned?
A. Gap analysis
B. Configuration
C. Project planning
D. Reengineering
55: SaaS (Software as a Service) is also referred to as:
A. IBM Software
B. On Demand Software
C. Cloud Software
D. In House Software
56: What is the term for a broad category of applications and technologies that enable gathering, storing, analyzing and providing access to data to help users make informed decisions?
A. ERP
B. Multiple Data Management
C. Middle Data Measurement
D. Business Intelligence
57: ERP systems have been traditionally been an on premise installation. In what other technology form are they also available as?
A. Cloud computing
B. Service-oriented architecture
C. Everything as a service
D. Business process as a Service
58: What is the type of backup which is taken while the Oracle database is still up and running and in archive log mode?
A. Restore
B. Cold Backup
C. Archiving
D. Hot Backup
59: Which technology is used in building SAP R/3?
A. Wide Area Network
B. Cloud Computing Technology
C. Client Server Technology
D. Mainframe Technology
60: The ability to view detailed source documents from the summary reports is known as:
A. Expansion
B. Drilling
C. Boring
D. Data Mining
61: When all modules are implemented at all locations at the same time, it is called:
A. Wave Approach
B. Big Bang
C. Parallel Approach
D. Phased Approach
62: Which of the folowing extensions is used by Oracle Reports Files?
A. SQL
B. RDF
C. CSV
D. PDF
63: What module is not typical in ERP applications
A. Finance
B. Marketing
C. Customer Relationship Management
D. Project Management
64: True or False? The "Big bang" approach in ERP implementations is essentially rolling out the project in phases, vs.. do it all at once
A. False
B. True
65: What is the strategy of package evaluation?
A. Take it as a trial
B. Do it right the first time
C. Accept with error
D. Trial and error
66: What does ETL mean in data warehousing?
A. Expected Total Lines
B. Extract Transform Load
C. Expected Total Load
D. Extract True Load
67: Which of the following are tasks involved during 'Execution' phase of ERP implementation?
A. Document the new procedures
B. Identify roles
C. Analyze existing system
D. Analyze the system
68: True or False? The benefit of an MRP system depends on the ability to have large amounts of unorganized information readily accessible
A. True
B. False
69: What does SAP represent?
A. Software and Application Products in Data Warehousing
B. Software Assisted Products
C. Systems Applications and Products in Data Processing
D. Systematic Application Products
70: All of the following are disadvantages of an ERP system, EXCEPT:
A. Data security is compromised
B. Overcoming resistance to sharing sensitive business information
C. Customizations can be problematic
D. Extensive training is required
71: What phase is data conversion done?
A. Testing
B. Training
C. Go-live
D. Configuration
72: When Table in source system records changes to a replication table, it is known as a:
A. Archiving Table
B. Logging Table
C. Table to Table
D. Recording Table
73: What is the first activity in ERP projects?
A. Analysis
B. Business modeling
C. Implementation
D. Testing
74: What is ERP system nervousness?
A. Reaction of user population to use new ERP system
B. Inability to meet business requirements
C. Defects associated in testing
D. How a system reacts to changes
75: What does the R in SAP R3 represent?
A. Release
B. Robust
C. Report
D. Real Time
76: What is a common criticism on organizations looking to implement ERPs?
A. It can have a disruptive effect on the organizations operations
B. Doesn’t allow for decisions and databases from all parts of the organization to be integrated
C. Implementation is expensive
D. Effect on business is disappointing
77: Which one of the following is the most critical step to create first in an ERP implementation?
A. Integrated data model
B. Organizational model
C. Business model
D. Data model
78: Which phase is the most difficult during an ERP implementation?
A.
B. Post implementation support
C. Executing work
D. Going live
E. Configuration
79: What is one of the most important things to do at the planning phase?
A. Define user roles and activities
B. Define the top management team
C. Pay for the project
D. Install the software
E. Define the goals of the project
80: Technology that involves a large number of computers connected through a communication network such as the Internet is called as:
A. Cloud Computing
B. Distributed Systems
C. Wide Area Network
D. Distributed Network
81: Which of the following is an advantage of using open source ERP software?
A. Security
B. Cost
C. Scalability
D. Agility
82: Who should be the ultimate owner of the ERP system in an organization?
A. The human resources department
B. The payroll department
C. The information technology department
D. The accounting department
83: How does the ERP system know which general ledger accounts to credit and debit based on the type of entry made into the system?
A. They are predetermined by the ERP software vendor and companies must adopt their GL structure.
B. All entries go into a suspense account that an accountant must code correctly at month end.
C. All possibilities for entry are mapped to specific codes during the implementation phase.
D. Each user must be trained in general ledger coding conventions and manually enter them for each transaction.
84: How long does it take to implement a mid-tier ERP system on an average?
A. 1 week
B. 1 month
C. Several months
D. 2 years
85: How can a company receive help in choosing between several systems without detailed knowledge of them?
A. By utilizing the services of the ERP consultants who also act as third-party resellers and can help companies choose between several options
B. By taking the sales people's advice when listening to their presentation
C. By nominating an employee to learn everything possible and make a selection
D. By Using the lowest cost possible as the deciding factor
86: How do switching costs affect a company once an ERP system is implemented?
A. It is easy to switch over from one ERP system to a different one as implementation costs are low.
B. Once employees learn one ERP system, they can use any ERP system; so switching costs are low.
C. They are prohibitive and make it difficult to change to a different system frequently.
D. It is expensive to maintain ERP systems; so switching over to a lower tier system is beneficial.
87: Why is ERP software typically more expensive as compared with individual software products?
A. The ERP system enjoys a monopoly which leads the prices to be fixed at a high level.
B. It includes several modules which companies do not need but have to pay for.
C. The support feature of the software is more than what is offered by individual software vendors.
D. The software essentially contains several individual software packages all at once, and the price also includes the cost of the time spent by the consultants to implement the software.
88: How do end users of the ERP software learn how to navigate and utilize the software?
A. Through training conducted by the software expert for the employees department
B. Through training offered by the ERP software vendor
C. Through online training and documentation
D. All of the above
89: What is a data warehouse?
A. The physical location where the company's servers are stored
B. A server which only the ERP system can access
C. A repository of the company's data from all of the company's systems to facilitate reporting and analysis
D. The server where the ERP software is hosted
90: Why does having all employees of a company use the same ERP system, enhance the efficiency of the business?
A. Having all employees on one system allows for faster system response.
B. All the employees can duplicate data entries in the same system.
C. Everyone is utilizing the same data and can view it in real time.
D. The management can create their own reports and reduce the burden on the staff.
91: What feature of an ERP system would a manufacturing company require that a financial services company would not?
A. Job costing
B. Human resources
C. Customer relationship management
D. Financial reporting
92: Why would a busy retail chain with multiple locations and a head office choose a high-tier ERP system?
A. They are looking for a lower cost solution.
B. They need fewer user's licenses.
C. The ERP system will be run only at the head office with no store interface.
D. Their needs require that multiple users and locations should be able to use the system simultaneously with no latency.
93: Why is there often resistance from employees to adopting a new ERP system?
A. They do not receive any of the benefits of the new system, but have to learn it.
B. They do not want the company to spend money on a new system.
C. They prefer to work harder and longer hours.
D. They feel it creates an unfair advantage over competitors.
94: Why would user desktops need to be upgraded in order to use the ERP system?
A. The ERP system reseller often includes desktop upgrades as a mandatory clause in the software contract.
B. It will be able to handle future upgrades to the system several years later.
C. Employees will be expected to work extra hard once the new system is in place.
D. To run additional third party software.
95: What data from the human resource module can be used by the payroll module in order to reduce duplicate entries?
A. Wage rates
B. Payroll tax percentages
C. Employee names and addresses
D. Overtime calculations
96: What is meant by "extensions" to the ERP system which need to be implemented?
A. Adding additional modules
B. Third party software which integrates with the software and data capture devices such as scanners
C. Deploying the software to offices outside of the home office
D. Buying additional seats for users that need to be set up during implementation
97: What is involved in the "data migration" process of implementation?
A. Identifying what data is to be migrated to the new system and establishing a clear cut off
B. Creating a copy of the data and moving it to the server the ERP system will exist on
C. Manually entering all the previous data into the new system
D. Identifying which data is the most important to migrate and deleting all other past data
98: Why would a web-based software be chosen over a desktop system?
A. It is faster in general than desktop systems.
B. It is best suited for companies where all employees are in one location.
C. The per seat license fee is typically much lower.
D. It can be hosted online and mitigates the company's need to purchase several hardware upgrades to support the new system.
99: What are the four general steps in an implementation plan?
A. Designing, Training, Testing, Phasing Out
B. Configuration, Documentation, Testing, Training
C. Project Design, Documentation, Training, Phasing Out
D. Testing, Training, Implementation, Configuration
100: Which of the following is a disadvantage of the web based ERP software?
A. It can be accessed anywhere without special desktop software.
B. If a company loses an internet connection, they will have no access.
C. There is no real time data reporting available.
D. The cost is usually lower than that of a desktop solution of equal ability.
List of Enterprise Resource Pl...
Available in:
Enterprise Resource Planning (ERP) MCQs
Вопросы по планированию ресурсов предприятия (ERP) на русском языке
Preguntas sobre planificación de recursos empresariales (ERP) en español
エンタープライズ リソース プランニング (ERP) に関する日本語の質問
Domande sull'Enterprise Resource Planning (ERP) in lingua italiana
Questions sur la planification des ressources de l'entreprise (ERP) en langues françaises
Questões de Enterprise Resource Planning (ERP) em português
Fragen zum Enterprise Resource Planning (ERP) in deutscher Sprache
中文企业资源规划（ERP）问题
أسئلة تخطيط موارد المؤسسات (ERP) باللغات العربية
Soal-soal Enterprise Resource Planning (ERP) dalam bahasa Indonesia
Türkçe dillerinde Kurumsal Kaynak Planlama (ERP) soruları
