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).
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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.”?


B.   Y2K

C.   ERP

D.   MRP