MIS Enterprise Resource Planning 2 — Questions and Answers
Question 1: In ERP terminology, what is a 'module'?
- A hardware component of the server
- A specific functional area covered by the ERP system (Correct answer)
- A security access level for users
- A type of database query
Correct answer: A specific functional area covered by the ERP system
ERP modules are distinct functional components covering specific business areas like finance, HR, manufacturing, or procurement.
Question 2: Which ERP module manages accounts payable, accounts receivable, and general ledger?
- Human Resources module
- Financial Accounting module (Correct answer)
- Supply Chain module
- Customer Relationship module
Correct answer: Financial Accounting module
The Financial Accounting module in ERP handles core accounting functions including accounts payable, accounts receivable, and general ledger.
Question 3: What is 'business process reengineering' in the context of ERP implementation?
- Replacing ERP software with custom-built systems
- Redesigning workflows to align with ERP best practices (Correct answer)
- Eliminating all manual processes regardless of value
- Adding more customization to the ERP software
Correct answer: Redesigning workflows to align with ERP best practices
Business process reengineering involves redesigning organizational workflows to align with the standardized best practices built into ERP systems.
Question 4: Cloud-based ERP systems are also known as:
- On-premise ERP
- Legacy ERP
- SaaS ERP (Software as a Service) (Correct answer)
- Mainframe ERP
Correct answer: SaaS ERP (Software as a Service)
Cloud-based ERP systems are delivered as Software as a Service (SaaS), hosted by the vendor and accessed via the internet.
Question 5: Which factor most significantly contributes to ERP implementation failure?
- Excessive hardware capacity
- Lack of top management support and poor change management (Correct answer)
- Too many qualified IT staff
- Overly detailed project documentation
Correct answer: Lack of top management support and poor change management
Research consistently shows that lack of executive sponsorship and poor change management are the leading causes of ERP implementation failure.
Question 6: The ERP concept of a 'single source of truth' means:
- Only one person can enter data into the system
- All departments access consistent, unified data from one integrated system (Correct answer)
- The ERP vendor controls all company data
- Financial data takes priority over operational data
Correct answer: All departments access consistent, unified data from one integrated system
A single source of truth in ERP ensures all departments work from the same consistent, real-time data rather than maintaining separate systems.
MIS Enterprise Resource Planning 2
In ERP terminology, what is a 'module'?