Practice Test GeeksERP - Management Practice Test
← All ERP Flashcard Decks

Materials Flashcards

7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Materials flashcards as text

  1. Which ERP module functionality triggers an automatic purchase requisition when inventory falls below the reorder point?

    Answer: MRP (Material Requirements Planning)

    MRP monitors stock levels and automatically generates purchase requisitions when inventory drops below the defined reorder point.

  2. In ERP materials management, what does the term 'goods receipt' refer to?

    Answer: Recording the physical arrival of purchased materials into the warehouse

    A goods receipt is the formal ERP transaction that records purchased materials arriving at the warehouse and updates inventory accordingly.

  3. What is a 'blanket purchase order' in ERP procurement?

    Answer: A long-term agreement allowing multiple deliveries up to a set quantity or value

    A blanket PO is a long-term contract with a vendor that permits multiple partial deliveries against a pre-agreed total quantity or spend.

  4. Which costing method assigns the cost of the most recently purchased inventory to goods sold first?

    Answer: LIFO

    LIFO (Last-In, First-Out) assumes the most recently purchased items are the first to be consumed or sold.

  5. In ERP, what is the purpose of a 'material ledger'?

    Answer: Recording actual costs for materials and enabling actual costing at period end

    The material ledger captures all price and quantity variances during the period and allows calculation of actual material costs at period close.

  6. What is 'cycle counting' in ERP inventory management?

    Answer: Continuously counting subsets of inventory on a rotating schedule

    Cycle counting is an ongoing process of counting portions of inventory regularly so the entire stock is counted multiple times per year without shutting down operations.

  7. Which ERP concept ensures that a purchase order cannot be created without an approved purchase requisition for controlled spending categories?

    Answer: Procurement workflow and approval hierarchy

    Procurement workflow and approval hierarchies enforce that purchase requisitions are authorized before a buyer can convert them into purchase orders.