Flashcards and Answers – Cis Chapter 5
Unlock all answers in this set
Unlock answersquestion
1) Nonprofit and government agencies need additional modules for their financial systems.
answer
TRUE
question
2) Compliance reports can help identify events that fall outside accepted ranges.
answer
False
question
16) Spammers use "web beacons" routinely to verify that email addresses are valid.
answer
True
question
16) Spammers use "web beacons" routinely to verify that email addresses are valid.
answer
true
question
15) Proactive live chats on websites in the customer support context offer considerable savings.
answer
true
question
14) A good retention management strategy does not promise a fast return on investment.
answer
false
question
13) Attracting new customers is often more difficult and expensive than retaining existing ones.
answer
true
question
12) Locations communicated through GPS are accurate within no less than a few kilometers.
answer
false
question
11) Companies have replaced sharing information through sensing technologies with electronic data interchange.
answer
false
question
10) Fuel prices affect supply chains.
answer
true
question
9) Long supply chains are less susceptible to disruption than are short supply chains.
answer
false
question
8) Identifying high-cost points along the supply chain is the first step toward reducing operational costs.
answer
true
question
7) All valuable supply chain metrics stay visible even when no one collects them.
answer
false
question
6) The corporate responsibility objectives of a company affect its decisions regarding sources and suppliers.
answer
true
question
5) Workforce management modules draw on the information stored in sales records that shows when peak demand occurs.
answer
true
question
4) Human capital management systems avoid using social networks due to the unregulated nature of media.
answer
false
question
3) In the United States, the Security and Exchange Commission (SEC) mandates many aspects of compliance.
answer
true
question
17) Twitter is growing as a way to provide customer support, largely because it can reach customers in near real-time.
answer
true
question
104) A company tried implementing an ERP system and failed. Which of the following is the most likely reason for its failure? A) lack of security B) lack of integration C) lack of preparatory training D) unsuitability for small or medium businesses
answer
C) lack of preparatory training
question
103) Companies pay subscription fees to access a vendor's software in the cloud, via the web, in the case of ________. A) software-as-a-service (SaaS) products B) remote web-application frameworks C) middleware D) web beacons
answer
A) software-as-a-service (SaaS) products
question
102) Vendors are providing software-as-a-service (SaaS) products because of the need to ________. A) lower implementation costs B) standardize ERP services C) address security concerns D) lower turnover costs
answer
A) lower implementation costs A) lower implementation costs
question
101) The "big bang" approach for implementing ERP involves ________. A) implementing software-as-a-service (SaaS) or on-demand software products B) going live with all the core modules in the engineered suite at the same time C) matching ERP modules to company needs D) using best-of-breed suites for enhancing ERPs through mergers
answer
B) going live with all the core modules in the engineered suite at the same time
question
99) Which of the following is a characteristic of best-of-breed suites? A) They are built from the ground up. B) Processes, interfaces, and data are integrated and consistent across systems. C) They match user requirements closely. D) They have a single architectural foundation.
answer
C) They match user requirements closely.
question
98) Software used as a bridge to integrate separate information systems and synchronize data across multiple systems is referred to as ________. A) malware B) web beacon software C) middleware D) bundled software
answer
C) middleware
question
105) Sam, the CEO of a product development company, is planning to implement an ERP system in his company. However, most of his colleagues advise him against implementing such a system saying that such systems have more weaknesses than strengths. Why should Sam still go ahead with the implementation? A) ERP systems are very easy to implement, especially in large organizations. B) Research shows that almost all ERP implementations have been a success. C) Once in place, the ERP can dramatically enhance operational efficiencies and reduce costs. D) ERP implementation rarely affects workflow and therefore requires very little usage training.
answer
C) Once in place, the ERP can dramatically enhance operational efficiencies and reduce costs.
question
100) Which of the following is a disadvantage of best-of-breed suites? A) failure to meet changing business needs B) lack of features that users require C) error-prone synchronization between systems D) high switching costs due to module interdependence
answer
C) error-prone synchronization between systems
question
97) A disadvantage of using a suite with synchronized modules is that ________. A) they have high switching costs B) the bridges between modules can be fragile C) there is no consistency across the modules D) required information will appear only in one system
answer
B) the bridges between modules can be fragile
question
95) In which of the following approaches for integrating ERP modules does the vendor provide middleware to connect systems that may be running on different platforms? A) best-of-breed suite B) engineered suite C) suite with synchronized modules D) global positioning system
answer
C) suite with synchronized modules
question
96) Which of the following requires application suites with synchronized modules? A) building ERP products from the ground up B) creating platforms that match user requirements closely C) building modules that are highly interdependent D) enhancing ERPs through mergers or acquisitions
answer
D) enhancing ERPs through mergers or acquisitions
question
88) Early integrated application suites evolved from systems that supported ________. A) supply chain management B) manufacturing resource planning C) customer relationship planning D) human capital management
answer
B) manufacturing resource planning
question
94) The advantage of using a suite with synchronized modules is that ________. A) the switching costs are far lower for ERP systems with interdependent modules B) a common architecture overlays the systems to improve consistency across the modules C) the introduction of changes in such systems to meet new business needs takes little time D) modules can have very rich functionality and can be implemented individually, reducing risk
answer
B) a common architecture overlays the systems to improve consistency across the modules
question
93) Which of the following is a disadvantage of the engineered suite? A) high switching costs B) independent modules C) high IT support costs D) multiple architectural foundations
answer
A) high switching costs
question
92) Which of the following approaches for integrating ERP modules has high switching costs? A) suite with synchronized modules B) engineered suite C) best-of-breed suite D) electronic data interchange
answer
B) engineered suite
question
91) Which of the following strategies for integrating ERP modules is built from the ground up with consistent user interfaces, integrated backend database, and a single architectural foundation? A) suite with synchronized modules B) global positioning system C) best-of-breed suites D) engineered suite
answer
D) engineered suite
question
90) In an ERP suite that includes modules specialized for higher education, which of the following would be used to track donations, pledges, and gifts, and manage contacts and donor relationships? A) enrollment management B) institutional advancement C) e-learning D) human resources
answer
B) institutional advancement
question
89) An integrated application suite to support a whole establishment that includes modules to manage financials, human resources, supply chain, customer relationships, and other business processes is called ________. A) enterprise resource planning B) total quality management C) business process automation D) business process management
answer
A) enterprise resource planning
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
answer
C) GPS devices
question
87) Sellers Forever Inc. makes use of a system that sends emails to all employees in the organization with requests to recognize and congratulate the top performing sales reps at the end of every week to encourage and motivate the sales team. Which of the following has the company employed? A) sales outsourcing B) email marketing C) sentiment analysis D) sales force automation
answer
D) sales force automation
question
86) ________ boosts the performance of an organization's sales reps by helping them track and manage their accounts, contacts, leads, and to-do lists. A) Sales outsourcing B) Sales force automation C) Sentiment analysis D) Email marketing
answer
B) Sales force automation
question
85) E-marketing information systems provide extensive tracking capabilities by embedding in the HTML email a ________. A) web trojan B) web beacon C) server log D) web log
answer
B) web beacon
question
84) The information systems used by customer relationship management (CRM) are often ________. A) outdated B) unified C) fragmented D) redundant
answer
C) fragmented
question
83) ________ helps organizations classify user-generated content as pro, con, or neutral toward the company or product. A) Predictive analytics B) Affective computing C) Polarity item-analysis D) Sentiment analysis
answer
D) Sentiment analysis
question
82) The use of live chats as a CRM strategy in the context of customer support will most likely result in ________. A) high employee turnover costs B) decreasing profitability C) considerable savings D) a decreasing retention rate
answer
C) considerable savings
question
81) Which of the following is a CRM strategy used to earn more revenue from existing customers? A) cross-selling B) permission marketing C) predictive analytics D) foot-in-the-door technique
answer
A) cross-selling
question
80) 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
answer
B) using a CRM system to track customer behavior when they visit the site
question
79) 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
answer
A) customer satisfaction index
question
78) 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.
answer
D) Attracting new customers is often more difficult and expensive than retaining existing ones.
question
77) ________ 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
answer
B) Customer relationship management
question
18) Engineered suites offer solid integration on the back-end and consistent user interfaces throughout.
answer
false
question
31) 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.
answer
C) Compliance reports relying on XBRL are more advanced than electronic PDFs.
question
30) 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
answer
A) develop a common language for all accounting and business reports
question
29) 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
answer
C) spotting fraudulent transactions and mistakes that require a manual review
question
28) 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
answer
B) exception reports
question
27) ________ 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
answer
A) Exception reporting
question
26) 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
answer
D) procurement and accounts payable
question
25) 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
answer
D) integration of components
question
24) 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
answer
B) creating bridges and interfaces to other information systems
question
23) 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
answer
C) negotiating the terms and conditions of payment agreements made with vendors
question
22) 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
answer
A) a federal government agency
question
21) 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
answer
B) financial
question
20) SaaS ERP solutions are "instant on" products, which require minimal training and reengineering of workflows compared to on-premise versions.
answer
false
question
19) Implementing ERPs very often results in dismal success rates and runaway costs.
answer
true
question
32) 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.
answer
B) It makes data computer-readable.
question
41) 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
answer
D) talent management applications
question
40) 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
answer
C) workforce management modules
question
39) 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
answer
D) workforce management modules
question
38) 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
answer
C) human resources management modules
question
37) 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
answer
A) optimizing labor schedules
question
36) 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
answer
A) employee record
question
35) 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
answer
C) developing and promoting a single worldwide set of financial reporting standards
question
34) 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
answer
B) develop a common language for financial reporting
question
33) 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
answer
D) computer-readable
question
54) Demand forecast accuracy is important because underestimating demand leads to ________. A) high inventory costs B) lost sales C) customer satisfaction D) discount blowouts
answer
B) lost sales
question
53) ________ describes how easily managers can track timely and accurate supply chain metrics. A) Marketability B) Sustainability C) Flexibility D) Visibility
answer
D) Visibility
question
52) 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
answer
D) reduce supply chain costs
question
51) 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
answer
A) aligning supply with demand
question
50) 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
answer
B) business strategy
question
49) The first step in the successful management of a next-generation supply chain is ________. A) sourcing B) delivering C) making D) planning
answer
D) planning
question
48) 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
answer
A) optimizing the flow of products and services from their source to the customer
question
47) 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
answer
C) human capital return on investment
question
46) 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
answer
B) cost per hire
question
45) 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
answer
C) turnover cost
question
44) 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
answer
B) turnover
question
43) 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
answer
A) boomerangs
question
59) 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
answer
D) restrictions on carbon emissions
question
75) 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
answer
C) global positioning systems device
question
74) ________ 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
answer
A) RFID chips
question
73) ________ 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
answer
B) Wireless scanners
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
answer
B) is more flexible
question
71) 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
answer
C) tends to lock partners into their relationship
question
70) 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
answer
D) improves supply chain performance
question
69) 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.
answer
A) EDI often relies on private networks and proprietary software.
question
68) 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
answer
D) electronic data interchange
question
67) 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
answer
C) suppliers have real-time access to up-to-date retail sales data
question
66) 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
answer
C) global trade management software
question
65) 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
answer
B) supply chain planning software
question
64) 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
answer
C) transportation management software
question
63) 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
answer
A) fleet routing and scheduling
question
62) 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
answer
C) warehouse management software
question
61) 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
answer
A) cross-docking
question
60) 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
answer
B) predicting demand
question
55) Demand forecast accuracy is important because overestimating demand leads to ________. A) discount blowouts B) decreased inventory costs C) lost sales D) increased prices
answer
A) discount blowouts
question
58) 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
answer
C) a company supplying products directly to customers by omitting all middlemen
question
57) 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
answer
B) bullwhip effect
question
56) 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
answer
C) overestimation of demand
