IS CHAPTER 8 ANSWERS
1.) As an organization's sales system generates sales orders and the items ordered are
dispatched, information is sent to the _____ system to manage the amounts owed to the
organization.
ACCOUNTS RECIEVABLE
2.) You have been asked to consult with an organization on implementing a new enterprise
system. Which of the following is NOT one of the tips you'd give them?
DEVELOP A 21 DAY SCHEDULE FOR THE TRAINING STAFF
3.) While processing data, if any code entered (or scanned) is not present in the database, the
transaction can still be processed.
FALSE
4.) An enterprise system uses multiple databases, one for each department. That is why
information cannot be shared with all authorized users in different functional areas.
FALSE
5.) In the context of purchasing systems involved in the traditional transaction processing
systems, when an invoice arrives from a supplier, it is matched to the original ______ and
the receiving report. A check is then generated if all data is complete and consistent.
ORDER
6.) Concept development, product design, prototyping, and product testing are key features
of a customer relationship management (CRM) system.
FALSE
7.) When implementing an ERP system, an organization has an opportunity to upgrade its' IT
infrastructure.
TRUE
8.) The information about a product from the design stage to its retirement stage is tracked
by the ________ system.
PRODUCT LIFECYCLE MANAGEMENT
9.) Which type of processing system processes business transactions as and when they are
received?
ONLINE TRANSACTION PROCESSING SYSTEMS
10.) In the context of enterprise resource planning (ERP) systems, "best practices" are
_______.
THE MOST EFFICIENT AND EFFECTIVE WAYS TO SOMPLETE A BUSINESS
PROCESS
11.) Running a(n) ________ efficiently and reliably is so critical that it is sometimes
referred to as the lifeblood of the organization.
ORDER PROCESSING SYSTEM
12.) Businesses rely on enterprise systems to perform many of their daily activities so
that work can be performed quickly without waste or mistakes.
TRUE
13.) A transaction processing system typically includes three types of systems: order
processing, accounting, and marketing.
FALSE
14.) An enterprise that has up to 500 employees is classified as a ___________.
SMALL OR MEDIUM SIZED ENTERPRISE
15.) Enterprise resource planning (ERP) systems are commonly used in manufacturing
companies.
TRUE
16.) Many organizations employ decision support systems that capture and process the
detailed data necessary to update records about the fundamental business operations of an
organization.
FALSE
17.) The ability to support customer service representatives so that they can quickly,
thoroughly, and appropriately address customer requests and resolve customer issues is
known as contact management.
FALSE
18.) In a study of nearly 200 ERP implementations done by Panorama, an ERP
consulting firm, it was determined that three-quarters of them were judged to be failures.
FALSE
19.) Computer-aided manufacturing (CAM) is the use of software to control machine
tools and related machinery in the manufacture of components and products.
TRUE
20.) The MIS, DSS, and KM systems get inputs from the XML.
FALSE
21.) In an organization, a transaction processing system (TPS) would support routine
operations such as customer ordering and billing.
TRUE
22.) If an organization is using several programs in different departments, most often
those applications can be replaced with a single integrated set of programs.
TRUE
23.) The goal of supply chain management (SCM) is to decrease costs and improve
customer service, which allows an organization to invest more in inventory in the supply
chain.
FALSE
24.) When an organization adopts the hosted software model, it retains internal
management of systems.
FALSE
25.) Manufacturing enterprise resource planning (ERP) systems follow a systematic
process for developing a production plan that begins with ___________.
SALES FORECASTING
26.) A(n) _____ is necessary to share information across all business functions and all
levels of management.
ENTERPRISE RESOURCE PLANNING SYSTEM
27.) In a transaction processing system (TPS), the purchasing systems must track the
flow of data related to all the cash flows that affect the organization.
FALSE
28.) Supply chain management includes _______.
The planning, executing, and controlling of all activities involved in raw material
sourcing and procurement, converting raw materials to finished products, and the
warehousing and delivering of finished products
29.) When ERP systems were becoming popular, mostly the small and medium
enterprises started implementing them before larger organizations did.
FALSE
30.) Existing, separate systems are often maintained alongside a new ERP system in
order to save money.
FALSE
31.) Many business application software vendors are pushing the use of the hosted
software model because it helps customers benefit from new technology while avoiding
much of the related complexity and high start-up costs.
TRUE
32.) With online transaction processing systems, the data is timely and accurate.
TRUE
33.) Which of the following transactions definitely requires immediate processing and
cannot be processed in batches?
CREDIT CARD PURCHASE
34.) In a transaction processing cycle, capturing data at its source and recording it
accurately in a timely fashion with minimal manual effort and in an electronic or digital
form so that it can be directly entered into the computer is known as source data
automation.
TRUE
35.) Which large business outsourcing company processes the payrolls for more than
600,000 companies in 125 countries?
AUTOMATIC DATA PROCESSING (ADP)
36.) Access to and use of a customer relationship management (CRM) is limited to
members of the marketing and sales teams in an organization.
FALSE
37.) The bill of materials (BOM) is the bill received from raw material vendors.
FALSE
38.) Which of these is a disadvantage of the hosted software model?
The hosted software model increases potential data security issues.
39.) With online transaction processing, the data is processed later, after a delay.
FALSE
40.) Which of the following situations require access to current data?
ATM TRANSACTIONS
41.) A customer relationship management (CRM) system helps a company in
managing ______.
ALL ASPECTS OF CUSTOMER ENCOUNTERS, INCLUDING MARKETING AND
SALES
42.) Data editing is ________.
CHECKING DATA FOR VALIDITY AND COMPLETENESS TO DETECT ANY
PROBLEMS
43.) A small retail business is currently using manual entry for its point-of-sale
system, which is slow and error-prone. Which system upgrade will make the process
faster and have fewer errors?
SOURCE DATA AUTOMATION
44.) With an online transaction processing (OLTP) system, each transaction is held
until the end of the day when all accumulated transactions are processed as a group.
FALSE
45.) External users of product lifecycle management (PLM) software include packaging
suppliers and contract manufacturers.
TRUE
