Question 1

SPL Corporation is an information technology consulting firm with offices in six states.In implementing an ERP system for its own use, management should be careful to:

Accepted Answer

SPL Corporation has offices in multiple states, so resolving multisite issues is important to ensure smooth implementation and usage of the ERP system. Additionally, selecting a compatible ERP system is crucial to ensure that the system meets the company's specific needs and requirements. Therefore, both options (resolve multisite issues and select a compatible ERP system) should be considered by management.

Question 2

Expectancy theory is most likely to be helpful in addressing which of the following common causes of ERP implementation failure?

Accepted Answer

Expectancy theory asserts that individuals are motivated by how their actions can lead to desirable outcomes. Therefore, poor leadership from top management can be addressed by applying expectancy theory principles, which can help identify the desired outcomes of implementing ERP and linking them with employee efforts.

Question 3

An organization is at the "chaotic" level of the capability maturity model.If it attempts to implement an ERP system, which of the following is most likely to cause the implementation to fail?

Accepted Answer

At the "chaotic" level, processes are typically ad-hoc and disorganized, making it difficult to align ERP software with existing processes, leading to a bad match.

Question 4

Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of the conditions is most clearly related to the "internal environment" component of the COSO frameworks on internal control and enterprise risk management?

Accepted Answer

Obtaining organizational commitment is most clearly related to the "internal environment" component of the COSO frameworks, which refers to the tone set by management and the overall attitude toward internal control and risk management within the organization.

Question 5

Common causes of ERP implementation failure include:

Accepted Answer

Both poor leadership from top management and unrealistic expectations are common causes of ERP implementation failure. Poor leadership can result in lack of commitment, inadequate resources, and insufficient training, while unrealistic expectations can lead to overspending, delays, and dissatisfaction with the system's performance. Therefore, both factors should be carefully considered and managed to increase the chances of a successful ERP implementation.

Question 6

An ERP system is a sophisticated form of relational database software; within each module, data are stored in tables.In which modules would you expect to find "employee ID" as a field in one or more tables: (i) customer relationship management, (ii) human resource management, (iii) supply chain management?

Accepted Answer

The answer of An ERP system is a sophisticated form...

Question 7

RVW Corporation uses an enterprise resource planning system.An accountant wants to create a report of the last month's purchases sorted by vendor that also includes the name of the purchasing agent who assisted with each transaction.Which modules of the ERP system will provide the relevant information?

Accepted Answer

The Supply Chain Management (SCM) module will have details on purchases and vendors, while the Human Resource Management (HRM) module will have information on employees, including purchasing agents.

Question 8

Please consider the following short case as you respond to the question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes.They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns.Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations.If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system.Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.Which of the following best pairs a fact from the case with an appropriate cause of ERP system failures?

Accepted Answer

The information provided does not indicate any issues with ERP software and organizational processes mismatch or poor leadership from top management. Sue and Sally's partnership and the nature of their business do not inherently suggest these problems.

Question 9

Modules in an ERP system that contain information about inventory include all the following except:

Accepted Answer

Customer relationship management, human resource management, and financial management modules do not typically contain information about inventory. However, supply chain management modules often have information about inventory levels, locations, and movements.

Question 10

As a processing tool in an accounting information system, ERP software is capable of generating outputs in the form of general-purpose financial statements.Which of the following statements is most true?

Accepted Answer

All four common ERP system modules (financial management, supply chain management, human resources management, and customer relationship management) provide information that can be used to generate general-purpose financial statements. However, it is important to note that some companies may still need to customize their ERP system or use additional software to meet their specific financial reporting needs. Option A is incorrect because while the financial management module provides critical financial data, it does not contain all the information needed to produce financial statements. Option C is incorrect because a separate "financial statement creation" module is not necessary in most cases. Option D is incorrect because option B is true.

Question 11

Please consider the following short case as you respond to the question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes.They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns.Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations.If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system.Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.If Sue and Sally accept Robert's proposal, which of the following common causes of ERP implementation failure is likely to be the most serious?

Accepted Answer

The most serious cause of ERP implementation failure for Sue and Sally's small bakery would be inadequate education and training. As they currently use a simple Excel spreadsheet to manage their financials, they may not have the technical expertise to effectively implement and use an ERP system. However, with proper education and training provided by Robert, they may be able to overcome this issue. Poor leadership and significant technical difficulties may not be as concerning for such a small operation, and therefore may not be the most serious causes of ERP implementation failure in this case. The statement "None of these.Since the company is so small, the ERP project is likely to succeed." is incorrect, as the size of the company does not guarantee the success of ERP implementation.

Question 12

Consider the following short case as you respond to the question: Scott and Logan are the CEO and CFO of MLN Corporation.The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones.They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system.A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of the following statements is most true?

Accepted Answer

Forming a six-person team from only three departments does not ensure that the ERP will be seen as an enterprise-wide venture, as it does not necessarily represent all departments or the entire organization. However, the case does not mention MLN operating in multiple locations, so resolving multi-site issues may indeed not have been a concern for them.

Question 13

Which modules in an ERP system are likely to contain information about a company's plant assets?

Accepted Answer

Financial management modules in an ERP system are designed to handle accounting and financial transactions, including the management of plant assets, which encompasses tracking their costs, depreciation, and valuation. Supply chain management focuses on the flow of goods and materials, not on financial asset management.

Question 14

Umble and Umble suggested six necessary conditions for a successful ERP implementation.Expectancy theory can be useful in achieving all of the following conditions except:

Accepted Answer

Expectancy theory can be used to motivate and obtain organizational commitment, view ERP as an enterprise-wide venture, and ensure data accuracy. However, it is not directly applicable to resolving multisite issues, which are more related to logistical and logistical coordination challenges.

Question 15

RVW Corporation uses an enterprise resource planning system.An accountant wants to create a report of the last month's sales sorted by client that also includes the name of the salesperson who assisted with each transaction.Which modules of the ERP system will provide the relevant information?

Accepted Answer

The answer of RVW Corporation uses an enterprise resource planning...

Question 16

Please consider the following short case as you respond to the question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes.They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns.Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations.If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system.Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.Which of the following best pairs a fact from the case with an appropriate cause of ERP system failures?

Accepted Answer

The answer of Please consider the following short case as...

Question 17

Consider the following short case as you respond to the question: Scott and Logan are the CEO and CFO of MLN Corporation.The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones.They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system.A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of them was best achieved in the case?

Accepted Answer

All three necessary conditions mentioned in Umble and Umble's study were achieved in the case:

A) Communicating strategic goals clearly: Scott and Logan identified the strategic goal of obtaining more timely information to help retain old customers and acquire new ones by implementing an ERP system. They communicated this goal to the team.
B) Viewing ERP as an enterprise-wide venture: Scott and Logan formed a six-person cross-functional team, with representatives from three of MLN's ten departments, to choose and implement the ERP system. This approach views ERP as an enterprise-wide venture.
C) Ensuring data accuracy: When implementing the ERP system, the team transferred data from MLN's general ledger software to the ERP system. This process ensured data accuracy.

Therefore, the best choice is D.

Question 18

Which of the following are conditions commonly associated with a successful ERP implementation?

Accepted Answer

Both obtaining organizational commitment and communicating strategic goals clearly are essential conditions for a successful ERP implementation. Organizational commitment is necessary because it ensures that employees accept and properly utilize the new system, while clear communication of strategic goals ensures that the system is aligned with the organization's overall objectives.

Question 19

TNG Corporation implemented an ERP system using the steps in the systems development life cycle.Which of the following statements is most true?

Accepted Answer

The use of systems development life cycle ensures that TNG followed a structured and organized approach to implementing their ERP system, which should minimize the risk of poor project management. However, it does not mean that top management leadership is unnecessary or that requirements analysis can be omitted.

Question 20

Please consider the following short case as you respond to the question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes.They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns.Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations.If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system.Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.Based on the information in the case, all parties need to be concerned with which of the following common causes of ERP implementation failure?

Accepted Answer

Both inaccurate data in the system and unrealistic expectations are common causes of ERP implementation failure. It is important for Sue, Sally, and Robert to ensure that the data being entered into the new system is accurate and to have realistic expectations of what the system can and cannot do. Without addressing these issues, the implementation could fail, leading to potential financial and operational problems for the bakery.

Quiz 9: E-Business and Enterprise Resource Planning Systems