ERP Overview 2 — Questions and Answers
Question 1: Which ERP deployment model gives a company the most control over data security and customization?
- Cloud ERP
- On-premises ERP (Correct answer)
- Hybrid ERP
- SaaS ERP
Correct answer: On-premises ERP
On-premises ERP is hosted on the company's own servers, giving full control over data, security policies, and customization.
Question 2: What is the primary purpose of a 'master data' strategy in ERP systems?
- To back up transaction records daily
- To ensure consistent, accurate core data across all modules (Correct answer)
- To generate executive dashboards automatically
- To archive historical financial reports
Correct answer: To ensure consistent, accurate core data across all modules
Master data management ensures that key entities like customers, vendors, and products are consistent and accurate across all ERP modules.
Question 3: Which term describes the process of moving data from legacy systems into a new ERP system?
- Data warehousing
- Data migration (Correct answer)
- Data replication
- Data normalization
Correct answer: Data migration
Data migration is the process of transferring existing data from old systems into the new ERP during implementation.
Question 4: A company's ERP system is integrated with its e-commerce platform. When a customer places an order online, which ERP module is most immediately triggered?
- Human Resources
- Financial Accounting
- Sales and Distribution (Correct answer)
- Plant Maintenance
Correct answer: Sales and Distribution
The Sales and Distribution module processes incoming customer orders and initiates the fulfillment workflow.
Question 5: What is 'go-live' in the context of an ERP project?
- The date the ERP vendor signs the contract
- The moment the new ERP system becomes operational for end users (Correct answer)
- The start of user acceptance testing
- The final data backup before decommissioning legacy systems
Correct answer: The moment the new ERP system becomes operational for end users
Go-live is the point at which the ERP system is officially launched and employees begin using it for real business operations.
Question 6: Which of the following best describes an ERP system's role in regulatory compliance?
- It eliminates the need for external auditors
- It automates legal filings without human review
- It enforces consistent processes and provides audit trails to support compliance (Correct answer)
- It stores compliance certificates on behalf of regulators
Correct answer: It enforces consistent processes and provides audit trails to support compliance
ERP systems support compliance by enforcing standardized workflows and maintaining detailed audit trails of all transactions.
Question 7: What does 'ERP scope creep' refer to during implementation?
- Unauthorized user access spreading across modules
- Uncontrolled expansion of project requirements beyond the original plan (Correct answer)
- Data errors propagating through integrated modules
- The ERP vendor adding hidden costs after contract signing
Correct answer: Uncontrolled expansion of project requirements beyond the original plan
Scope creep occurs when additional features or requirements are added after the project starts, increasing cost and timeline.
ERP Overview 2
Which ERP deployment model gives a company the most control over data security and customization?