Deck 5: Information Systems for the Enterprise

Question 1

Nonprofit and government agencies need additional modules for their financial systems.

Answer 1

True

Question 2

Proactive live chats on websites in the customer support context offer considerable savings.

Answer 2

True

Question 3

Long supply chains are less susceptible to disruption than are short supply chains.

Answer 3

False

Question 4

n the United States, the Security and Exchange Commission (SEC) mandates many aspects of compliance.

Question 5

All valuable supply chain metrics stay visible even when no one collects them.

Question 6

Locations communicated through GPS are accurate within no less than a few kilometers.

Question 7

Attracting new customers is often more difficult and expensive than retaining existing ones.

Question 8

Workforce management modules draw on the information stored in sales records that shows when peak demand occurs.

Question 9

Twitter is growing as a way to provide customer support, largely because it can reach customers in near real-time.

Question 10

A good retention management strategy does not promise a fast return on investment.

Question 11

Spammers use "web beacons" routinely to verify that email addresses are valid.

Question 12

SaaS ERP solutions are "instant on" products, which require minimal training and reengineering of workflows compared to on-premise versions.

Question 13

Compliance reports can help identify events that fall outside accepted ranges.

Question 14

Companies have replaced sharing information through sensing technologies with electronic data interchange.

Question 15

Implementing ERPs very often results in dismal success rates and runaway costs.

Question 16

Human capital management systems avoid using social networks due to the unregulated nature of media.

Question 17

Fuel prices affect supply chains.

Question 18

Identifying high-cost points along the supply chain is the first step toward reducing operational costs.

Question 19

The corporate responsibility objectives of a company affect its decisions regarding sources and suppliers.

Question 20

Engineered suites offer solid integration on the back-end and consistent user interfaces throughout.

Question 21

Consistency in a company's financial management system is maintained by ________.

A) supporting multiple finance-related activities and processes
B) creating bridges and interfaces to other information systems
C) generating exception reports regarding unusual financial events
D) creating compliance reports that conform to international regulations

Question 22

The financial management system of a software company automatically updates the general ledger whenever there are any transactions in the company's accounts receivable and accounts payable. This is an example of the financial system's ________.

A) compliance reporting
B) exception reporting
C) service delivery applications
D) integration of components

Question 23

Which of the following organizations requires the most number of modules for their financial systems?

A) a federal government agency
B) a private-sector bank
C) a steel manufacturing company
D) an IT consulting firm

Question 24

Modules such as budget planning, debt management, travel and expense management, and contracts management are typically included in a ________ management system.

A) supply chain
B) financial
C) human capital
D) customer relationship

Question 25

Carrie, the finance manager of an insurance company, suspects some of the sales representatives of submitting their travel expenses receipts twice. Which of the following would help her spot such fraudulent submissions?

A) electronic data interchange
B) exception reports
C) noncompliance reports
D) compliance reports

Question 26

Exception reports that are generated by financial information systems help organizations primarily in ________.

A) conforming to local, national, and international financial regulations
B) comparing financial results and strategies with competitor companies
C) spotting fraudulent transactions and mistakes that require a manual review
D) developing organization- and industry-specific accounting standards

Question 27

Giving clear definitions and tags to financial terms using eXtensible Business Reporting Language (XBRL) makes data ________.

A) less transparent
B) manually manageable
C) concise and error-free
D) computer-readable

Question 28

Which of the following is true of compliance reporting?

A) Supply chain management systems carry the major burden of compliance reporting.
B) Compliance reports primarily help in identifying events that fall outside accepted ranges.
C) Compliance reports relying on XBRL are more advanced than electronic PDFs.
D) In the United States, the South Eastern Conference (SEC) mandates all aspects of compliance.

Question 29

Which of the following components of the HCM systems is responsible for tracking employees' demographic information?

A) workforce management modules
B) talent management applications
C) human resources management modules
D) service delivery modules

Question 30

Which of the following activities is supported by financial management systems?

A) mapping the employee life cycle, starting from recruitment to retirement
B) deciding which suppliers to use for sourcing raw materials
C) negotiating the terms and conditions of payment agreements made with vendors
D) creating and maintaining a repository of employee contact information

Question 31

The goal of using XBRL in compliance reporting is to ________.

A) identify events that fall outside accepted ranges
B) develop a common language for financial reporting
C) create streamlined, manual workflows
D) encourage diversity in reporting practices

Question 32

Which of the following is the central element of the human capital management (HCM) information system?

A) employee record
B) customer service
C) marketing campaigns
D) transportation

Question 33

The goal of using eXtensible Business Reporting Language (XBLR) in compliance reporting is to ________.

A) develop a common language for all accounting and business reports
B) avoid transparency so that financial data are kept confidential
C) ensure that only computer programs know the meaning of tagged concepts in reports
D) ensure that only humans know the meaning of tagged concepts in reports

Question 34

Which of the following is a function of the human capital management system?

A) optimizing labor schedules
B) planning terrestrial transport rounds
C) tracking all correspondence with customers
D) creating a centralized repository of customer contact information

Question 35

________ involves the automatic tagging of unusual events in financial transactions and is used to spot mistakes and fraudulent activities.

A) Exception reporting
B) Compliance reporting
C) Human capital management
D) Electronic data interchange

Question 36

Which of the following is the primary function of the International Accounting Standards Board (IASB)?

A) representing accountants employed in public sector companies around the world
B) representing accountants employed in public sector companies in developed countries
C) developing and promoting a single worldwide set of financial reporting standards
D) training professional accountants worldwide on ethical accounting practices

Question 37

The first targets of process improvements through integration of modules and creation of workflows in companies were ________.

A) financial analytics and financial reporting
B) general ledger and asset management
C) cash management and budget planning
D) procurement and accounts payable

Question 38

Which of the following components of the HCM systems keep track of employee time and attendance, sick leave, vacation leave, and project assignments?

A) talent management applications
B) human resources management applications
C) service delivery modules
D) workforce management modules

Question 39

Which of the following components of the HCM systems would airport managers use for optimizing the task schedules of ground personnel?

A) talent management applications
B) service delivery modules
C) workforce management modules
D) human resources management applications

Question 40

Which of the following is true of the eXtensible Business Reporting Language (XBRL)?

A) It reduces the transparency in a reporting process.
B) It makes data computer-readable.
C) It specializes only in financial reporting.
D) It has failed to advance over electronically delivered PDFs.

Question 41

Which of the following is a function of a supply chain planning software?

A) fleet routing
B) predicting demand
C) cross-docking
D) optimizing shipping

Question 42

The total of termination costs, hiring costs, training costs, and other costs related to replacing a worker is referred to as ________.

A) cost per hire
B) sunk cost
C) turnover cost
D) hidden cost

Question 43

The percentage of workers who left an organization and were replaced during a time period is called employee ________.

A) retention
B) turnover
C) attrition
D) termination

Question 44

Which of the following illustrates a practice that can dramatically reduce supply chain costs?

A) a supplier company depending on the sales of a market leader to supply products accordingly
B) a company replacing its supplier with another larger and more competitive supplier
C) a company supplying products directly to customers by omitting all middlemen
D) a company closely monitoring and tracking each and every inventory in its supply chain

Question 45

Which of the following is a part of a company's supply chain management?

A) aligning supply with demand
B) managing company workforce
C) providing customer support
D) managing customer retention

Question 46

Which of the following is the primary function of supply chain management in companies?

A) optimizing the flow of products and services from their source to the customer
B) restructuring the organizational hierarchy to facilitate effective communication
C) improving the visibility of a product or service through effective promotional strategies
D) identifying the optimum target market to increase the likelihood of the sale of a product

Question 47

A company resorts to discount blowouts to get rid of excess merchandise. Which of the following scenarios is most likely to have triggered this action?

A) increase in inventory costs
B) ineffective tracking of the inventory
C) overestimation of demand
D) increase in the price of raw materials

Question 48

Which of the following is calculated by adding the average advertising costs for job postings, agency fees, recruiter's salary and benefits, and relocation expenses for new employees?

A) turnover cost
B) cost per hire
C) cost of attrition
D) retention cost

Question 49

Which of the following is a factor that directly affects a company's choice of suppliers?

A) demand forecast accuracy
B) business strategy
C) sunken costs
D) turnover costs

Question 50

Demand forecast accuracy is important because overestimating demand leads to ________.

A) discount blowouts
B) decreased inventory costs
C) lost sales
D) increased prices

Question 51

Which of the following components of the HCM systems focuses on employee life cycle and career development?

A) workforce management modules
B) social networking software
C) service delivery modules
D) talent management applications

Question 52

Which of the following will typically have a major impact on global supply chain costs?

A) increasing attrition rate in companies
B) decreasing focus on international business ethics
C) restrictions on grants from governments for research and development
D) restrictions on carbon emissions

Question 53

The distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer, is referred to as the ________.

A) accelerator effect
B) bullwhip effect
C) loyalty effect
D) local multiplier effect

Question 54

________ describes how easily managers can track timely and accurate supply chain metrics.

A) Marketability
B) Sustainability
C) Flexibility
D) Visibility

Question 55

Which of the following modules of the human capital management systems encourages interactions through wikis and blogs?

A) human resources management applications
B) service delivery modules
C) workforce management modules
D) social networking software

Question 56

A steel manufacturing company that follows a low-cost leadership strategy does not accept any product returns from its customers. The company's "no-return" policy aims to ________.

A) effectively track inventories
B) streamline financial workflows
C) increase the sale of its products
D) reduce supply chain costs

Question 57

The first step in the successful management of a next-generation supply chain is ________.

A) sourcing
B) delivering
C) making
D) planning

Question 58

Demand forecast accuracy is important because underestimating demand leads to ________.

A) high inventory costs
B) lost sales
C) customer satisfaction
D) discount blowouts

Question 59

The monetary gains produced by an organization's expenditures on salaries, benefits, bonuses, and other costs for employee talent is called ________.

A) turnover cost
B) net profit
C) human capital return on investment
D) rate of earnings on invested capital

Question 60

Laid-off workers, who are hired back owing to their positive attitude and networking capabilities when businesses recover, are called ________.

A) boomerangs
B) laggards
C) freelancers
D) opinion leaders

Question 61

A bag manufacturing company had suffered financial losses due to overestimation of demand, which led to overproduction. Which of the following software can help the company prevent such situations in the future?

A) sales force optimization software
B) supply chain planning software
C) manufacturing execution system
D) customer relationship management software

Question 62

________ are attached to packages or crates and can transmit data as they pass by readers at seaports, railway stations, or warehouses.

A) RFID chips
B) Wireless scanners
C) GPS devices
D) EDI systems

Question 63

________ help commercial shippers to read the barcodes on packages during transit and upload tracking number, date, time, and place to servers.

A) RFID chips
B) Wireless scanners
C) GPS devices
D) EDI systems

Question 64

Which of the following supply chain management software is used to manage and optimize inventories, space allocation, shipments, and cross-docking?

A) supply chain planning software
B) transportation management software
C) warehouse management software
D) global trade management software

Question 65

Which of the following software is used to ensure compliance for cross-border transactions for importers and exporters?

A) warehouse management software
B) supply chain planning software
C) global trade management software
D) manufacturing execution system

Question 66

The bullwhip effect can be reduced if ________.

A) suppliers occasionally receive faxed purchase orders from the retailer
B) suppliers are provided with warehouse management software
C) suppliers have real-time access to up-to-date retail sales data
D) suppliers are provided with global trade management software

Question 67

A disadvantage of electronic data interchange (EDI) is that it ________.

A) increases the time required for a product to reach the end customer
B) fails to build trust among the partners in a supply chain
C) tends to lock partners into their relationship
D) is not always reliable and may result in wastage of goods

Question 68

An advantage of electronic data interchange (EDI) is that it ________.

A) does not rely on any proprietary software
B) takes very little time to be set up in a company
C) enables a company to easily switch partners when required
D) improves supply chain performance

Question 69

Which of the following is true regarding customer retention?

A) Research has proved that existing customers tend to be less profitable than new customers.
B) The only accurate metric that calculates customer retention is the number of repeat customers.
C) A retention strategy increases the number of loyal customers, but provides no return on investment.
D) Attracting new customers is often more difficult and expensive than retaining existing ones.

Question 70

An electronic bridge between partner companies in a supply chain that is used to transmit real-time information about orders, inventories, invoices, and other data is called ________.

A) electronic market
B) financial network
C) expense and cost recovery system
D) electronic data interchange

Question 71

________ encompasses the strategies, processes, and information systems that an organization uses to build and maintain relationships with the current and prospective users of its products or services.

A) Enterprise resource planning
B) Customer relationship management
C) Human capital management
D) Supply chain management

Question 72

When compared to electronic data interchange, the use of collaborative systems with XML formats to improve visibility between partner companies in a supply chain ________.

A) requires no trust between partners
B) is more flexible
C) is difficult to create
D) requires less time to create

Question 73

An online retail website has a low rate of customer retention. Which of the following would be the most effective way to help the company increase its retention rate?

A) using uninvited pop-up chat to encourage customers to buy products
B) using a CRM system to track customer behavior when they visit the site
C) promoting the website through conventional advertising to gain visibility
D) building seamless financial workflows

Question 74

Which of the following devices receives signals from orbiting satellites that transmit time and location data?

A) electronic data interchange system
B) wireless scanner
C) global positioning systems device
D) RFID chip

Question 75

Which of the following supply chain management software is used to manage and optimize shipping, logistics, fleet routing, and scheduling?

A) supply chain planning software
B) warehouse management software
C) transportation management software
D) global trade management software

Question 76

________ help drivers navigate while transporting materials and keep managers in touch with their transportation fleets.

A) EDI systems
B) Wireless scanners
C) GPS devices
D) RFID chips

Question 77

Which of the following is true regarding the use of electronic data interchange (EDI) between partner companies in a supply chain?

A) EDI often relies on private networks and proprietary software.
B) EDI takes very little time to set up.
C) EDI enables companies to easily switch partners when required.
D) EDI is more flexible than systems with machine-readable formats.

Question 78

Which of the following is a function of warehouse management software?

A) cross-docking
B) predicting demand
C) fleet routing and scheduling
D) ensuring compliance for cross-border transactions

Question 79

Which of the following is a function of transportation management software?

A) fleet routing and scheduling
B) predicting demand
C) optimizing inventory
D) cross-docking

Question 80

Which of the following is a metric that is commonly used in CRM?

A) customer satisfaction index
B) human capital return on investment
C) turnover costs
D) demand forecast accuracy