Chapter 5: ERP Systems MCQ

ERP systems primarily improve business efficiency by:

• Eliminating the need for data storage

• Integrating information across departments

• Restricting access to organizational data

• Reducing employee collaboration

What is the primary benefit of integrating CRM with an ERP system?

• Improves financial transactions

• Enhances customer relationship management

• Eliminates supply chain issues

• Reduces cybersecurity concerns

In an ERP system, what does real-time data access facilitate?

• Delayed decision-making

• Improved transparency and accuracy

• Increased manual work

• Lack of organizational collaboration

The term ‘Bullwhip Effect’ in supply chain management refers to:

• Stable supply chain demands

• Accurate inventory levels

• Demand distortion leading to inefficiencies

• Improved supplier relationships

What is a key feature of cloud-based ERP solutions?

• Limited scalability

• Increased accessibility and flexibility

• Lack of remote work integration

• Reduced data security

How do ERP systems contribute to financial management?

• By eliminating transaction tracking

• Through real-time financial reporting and automation

• By restricting cost analysis

• By increasing manual bookkeeping efforts

Which department benefits the most from ERP’s human resource management integration?

• Marketing

• Finance

• HR

• Logistics

What is a major challenge of ERP system implementation?

• Reduced data accuracy

• High initial costs and complex integration

• Decreased automation

• Less scalability

The function of supply chain management in an ERP system includes:

• Ignoring inventory levels

• Optimizing logistics and vendor management

• Restricting procurement processes

• Reducing data visibility

How does ERP enhance decision-making?

• By restricting business intelligence tools

• Through data centralization and analytics

• By limiting financial reporting

• By increasing the need for manual data processing