Practice Test GeeksERP - Management Practice Test
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Overview 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.

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  1. What does 'total cost of ownership (TCO)' include when evaluating an ERP system?

    Answer: Licensing, implementation, training, customization, maintenance, and ongoing support costs

    TCO encompasses all costs associated with an ERP over its lifetime, including hidden costs like training, upgrades, and internal IT support.

  2. How does ERP support demand planning in a retail company?

    Answer: By analyzing historical sales data and inventory levels to forecast future product demand

    ERP demand planning modules use historical data, seasonality, and trends to forecast future demand and optimize inventory levels.

  3. What is 'exception-based management' in the context of ERP reporting?

    Answer: Focusing management attention on metrics that deviate significantly from targets or thresholds

    Exception-based management uses ERP alerts and reports to highlight only the data points that fall outside acceptable ranges, saving managers time.

  4. Which ERP implementation strategy involves running the old and new systems simultaneously during transition?

    Answer: Parallel running

    Parallel running means both the legacy and new ERP systems operate simultaneously so results can be compared and verified before fully switching over.

  5. A company using ERP notices that purchase order data entered in the procurement module automatically updates the general ledger. This illustrates which core ERP principle?

    Answer: System integration

    ERP system integration means that a transaction entered in one module automatically updates all related modules, eliminating duplicate data entry.

  6. Which factor most commonly drives a mid-market company to replace its existing ERP system?

    Answer: Business growth that causes the current system to lack scalability and functionality

    The most common ERP replacement driver is outgrowing the current system—it can no longer support the company's expanded complexity, volume, or new business requirements.

  7. What is the purpose of 'role-based access control' (RBAC) in an ERP system?

    Answer: To ensure each user can only access data and functions relevant to their job role

    RBAC grants ERP permissions based on job roles, so an accounts payable clerk, for example, cannot access payroll or HR records.