CIS chapter 5

1) Nonprofit and government agencies need additional modules for their financial systems.
TRUE
2) Compliance reports can help identify events that fall outside accepted ranges.
False
16) Spammers use “web beacons” routinely to verify that email addresses are valid.
True
16) Spammers use “web beacons” routinely to verify that email addresses are valid.
true
15) Proactive live chats on websites in the customer support context offer considerable savings.
true
14) A good retention management strategy does not promise a fast return on investment.
false
13) Attracting new customers is often more difficult and expensive than retaining existing ones.
true
12) Locations communicated through GPS are accurate within no less than a few kilometers.
false
11) Companies have replaced sharing information through sensing technologies with electronic data interchange.
false
10) Fuel prices affect supply chains.
true
9) Long supply chains are less susceptible to disruption than are short supply chains.
false
8) Identifying high-cost points along the supply chain is the first step toward reducing operational costs.
true
7) All valuable supply chain metrics stay visible even when no one collects them.
false
6) The corporate responsibility objectives of a company affect its decisions regarding sources and suppliers.
true
5) Workforce management modules draw on the information stored in sales records that shows when peak demand occurs.
true
4) Human capital management systems avoid using social networks due to the unregulated nature of media.
false
3) In the United States, the Security and Exchange Commission (SEC) mandates many aspects of compliance.
true
17) Twitter is growing as a way to provide customer support, largely because it can reach customers in near real-time.
true
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
C) lack of preparatory training
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
A) software-as-a-service (SaaS) products
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
A) lower implementation costs
A) lower implementation costs
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
B) going live with all the core modules in the engineered suite at the same time
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.
C) They match user requirements closely.
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
C) middleware
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.
C) Once in place, the ERP can dramatically enhance operational efficiencies and reduce costs.
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
C) error-prone synchronization between systems
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
B) the bridges between modules can be fragile
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
C) suite with synchronized modules
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
D) enhancing ERPs through mergers or acquisitions
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
B) manufacturing resource planning
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
B) a common architecture overlays the systems to improve consistency across the modules
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
A) high switching costs
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
B) engineered suite
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
D) engineered suite
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
B) institutional advancement
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
A) enterprise resource planning
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
C) GPS devices
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
D) sales force automation
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
B) Sales force automation
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
B) web beacon
84) The information systems used by customer relationship management (CRM) are often ________.
A) outdated
B) unified
C) fragmented
D) redundant
C) fragmented
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
D) Sentiment analysis
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
C) considerable savings
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
A) cross-selling
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
B) using a CRM system to track customer behavior when they visit the site
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
A) customer satisfaction index
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.
D) Attracting new customers is often more difficult and expensive than retaining existing ones.
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
B) Customer relationship management
18) Engineered suites offer solid integration on the back-end and consistent user interfaces throughout.
false
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.
C) Compliance reports relying on XBRL are more advanced than electronic PDFs.
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
A) develop a common language for all accounting and business reports
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
C) spotting fraudulent transactions and mistakes that require a manual review
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
B) exception reports
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
A) Exception reporting
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
D) procurement and accounts payable
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
D) integration of components
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
B) creating bridges and interfaces to other information systems
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
C) negotiating the terms and conditions of payment agreements made with vendors
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
A) a federal government agency
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
B) financial
20) SaaS ERP solutions are “instant on” products, which require minimal training and reengineering of workflows compared to on-premise versions.
false
19) Implementing ERPs very often results in dismal success rates and runaway costs.
true
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.
B) It makes data computer-readable.
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
D) talent management applications
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
C) workforce management modules
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
D) workforce management modules
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
C) human resources management modules
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
A) optimizing labor schedules
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
A) employee record
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
C) developing and promoting a single worldwide set of financial reporting standards
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
B) develop a common language for financial reporting
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
D) computer-readable
42) 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
Answer: D
AACSB: Information Technology
Chapter LO: 2
Difficulty: Easy
Course LO: Discuss the role of information systems in supporting business processes
54) Demand forecast accuracy is important because underestimating demand leads to ________.
A) high inventory costs
B) lost sales
C) customer satisfaction
D) discount blowouts
B) lost sales
53) ________ describes how easily managers can track timely and accurate supply chain metrics.
A) Marketability
B) Sustainability
C) Flexibility
D) Visibility
D) Visibility
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
D) reduce supply chain costs
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
A) aligning supply with demand
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
B) business strategy
49) The first step in the successful management of a next-generation supply chain is ________.
A) sourcing
B) delivering
C) making
D) planning
D) planning
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
A) optimizing the flow of products and services from their source to the customer
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
C) human capital return on investment
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
B) cost per hire
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
C) turnover cost
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
B) turnover
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
A) boomerangs
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
D) restrictions on carbon emissions
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
C) global positioning systems device
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
A) RFID chips
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
B) Wireless scanners
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
B) is more flexible
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
C) tends to lock partners into their relationship
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
D) improves supply chain performance
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.
A) EDI often relies on private networks and proprietary software.
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
D) electronic data interchange
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
C) suppliers have real-time access to up-to-date retail sales data
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
C) global trade management software
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
B) supply chain planning software
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
C) transportation management software
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
A) fleet routing and scheduling
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
C) warehouse management software
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
A) cross-docking
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
B) predicting demand
55) Demand forecast accuracy is important because overestimating demand leads to ________.
A) discount blowouts
B) decreased inventory costs
C) lost sales
D) increased prices
A) discount blowouts
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
C) a company supplying products directly to customers by omitting all middlemen
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
B) bullwhip effect
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
C) overestimation of demand