Enterprise resource planning mcq questions and answers

Enterprise resource planning mcq questions and answers

Enterprise resource planning mcq questions and answers pdf

Are you looking for Enterprise Resource Planning (ERP) Multiple Choice Questions (MCQs) with answers? If so, then you are in the right place.

ERP is an integrated information system that helps organizations to manage their business processes and operations more efficiently and effectively. In order to have a better understanding of ERP, it is important to assess your knowledge by attempting ERP MCQs.

Introduction to Enterprise resource planning

Enterprise Resource Planning (ERP) is a business management system that allows organizations to better manage their resources.

It is a comprehensive system of tools and processes used to improve the efficiency of operations, allowing for smoother and more efficient management of resources such as financials, production, inventory, sales, marketing, human resources, customer service and more.

Enterprise Resource Planning systems have become increasingly popular over recent years as businesses seek to increase transparency and streamline their internal operations.

Enterprise Resource Planning with Answer

50 Enterprise resource planning mcq questions and answers pdf

1. Purchase refers to a business or organisation attempting to acquire ___ or ___ to accomplish the goals of the enterprise.
Ans. Goods, services

2. Sales, an essential function for an organisation reflects a ___ in the market.
Ans. Company’s position

3. How does the purchase department initiate the purchase process?
Ans. The purchase department raises the purchase order to initiate the purchase process.

4. The Purchase module is also referred to as ___.
Ans. Supply Chain Management

5. ERP Purchase module _ procurement of required raw materials
Ans. Streamlines

6. What does the purchase process emphasises on?
Ans. The purchase process emphasises to ensure that materials with correct quality specifications are available at right prices at right time.

7. The Purchase module contains a for accounting and purchasing.
Ans. Supplier file

8. How is a purchase order created?
Ans. The Purchasing system adopts information from the requisition and the quotation to create a purchase order.

9. What are the different ways of creating purchase requisition?
Ans. Different ways of creating purchase requisition are:
• Directly from a maintenance requirement
• Easily by copying an existing requisition, using the “same as/except” capability
• Automatically from MRP for suggested raw material purchases
• Easily by entering multiple items or lines on a single requisition

10. Name the sales related business transactions?
Ans. The sales related business transactions are:
• Sales queries, such as inquiries and quotations
• Sales orders
• Outline agreements, such as contracts and scheduling agreements
• Delivery/Shipment
• Issue invoice/bill
• After sales support

11. ___ module supports the entire sales and purchase processes from start to finish.
Ans. Order management

12. The billing system is integrated with the other modules like ___.
Ans. Financial Accounting

13. ___ is an essential element of the logistics chain.
Ans. Transportation

14. How are changes in inventory updated?
Ans. Automatically/mechanically

6. The key to MRP is time-phasing of requirements for components are, based upon the structure of the ___.
Ans. Bill of Material

7. _ is an expansion of closed loop MRP for managing an entire manufacturing company.

8. Is also important when suppliers or the shop floor cannot meet order due dates
Ans. Feedback

9. DRP plays a has a central ___ role in the physical distribution system
Ans. Coordinating

10. ___ eliminates waste by eliminating defects.
Ans. Total Quality Management

11. The Kanban process of production is sometimes incorrectly described as simple _ technique
Ans. Just-in-Time management

12. JIT continuously seeks to reduce ___ levels of raw materials, work in process and finished goods.
Ans. Inventory

13. When operating a JIT system, ___ has a minimum impact.
Ans. Disruption

14. Manufacturing companies are usually good at recording systematically the _and ___.
Ans. Component, assembly drawings

15. Most systems allow the current status of the entire task, with all supporting data, to be tracked and viewed by ___ individuals at all times.
Ans. Authorised

16. The way systems differ is in how much flexibility they permit allow within the discipline.
Ans. Framework

17. The challenge is how far you can allow ___ and cross-fertilisation to carry on
Ans. Informal teamwork

18. Historically, a design engineer would spend as much as 25-30% of his; time simply.
Ans. Handling information

19. The ___ no longer needs to know where to look for release designs or other data, since it is all there on demand.
Ans. Designer

20. The single concept ensures that, while data is immediately accessible to those who need it.
Ans. Central vault

21. The ___ company’s production planning is based also on firm customer orders.
Ans. Make to Order

22. MTO manufacturers traditionally have had to choose between ___ and ___.
Ans. Assemble to Order, Engineer-to-Order

23. What is a bar code?
Ans. Image to identify a product number

24. Moving inventory from a warehouse is called ___.
Ans. Location transfers

25. What is minimum inventory requirement?
Ans. Minimum amount of stock required to work

26. ___ Module assures safe payment mode.
Ans. Inventory Bills and Challans

27. Moving of inventory within the warehouse is called ___.
Ans. Inter-warehouse transfer

28. ERP Inventory systems are economical. State True or False.
Ans. False

29. ___ requests for materials from various units of the organisation.
Ans. Material request management

30. The systems that deploy ERP systems support cross functional suite for transactions.
State True or False.
Ans. True

31. CRM software system automates business tasks.
Ans. Customer-related

32. Name the components of a CRM system.
Ans. The components of a CRM system are: CRM Software, Business Processes, Users and Hardware and Operating Systems

33. The CRM module provides a platform for enhanced ___ and ___.
Ans. Customer service, customer satisfaction.

34. Name the three types of CRMs
Ans. The three types of CRMs are: Operational CRM, Collaborative CRM and Analytical CRM

35. ___ CRM is used in management decisions
Ans. Analytical

36. What is the need for maintaining a customer interaction history?
Ans. The customers can easily contact with the service personnel without having to repeat any of the earlier communication or information.

37. ___ CRM reduces the company costs and improves the services provided.
Ans. Collaborative

38. ___ system provides an array of capabilities to streamline all phases of the sales process.
Ans. Sales Force Automation

39. ___ is the core of a CRM
Ans. Business processes

40. What are the aspects that result in failure of CRM system?
Ans. The aspects that result in failure of CRM system are: Poor planning, Not working toward a solution and Poor integration

41. Human Resources department is responsible for recruiting employees for an organisation.
(True / False)
Ans. True

42. ___ bridges a gap between employee related activities with the organisations financial management systems.
Ans. Payroll activities

43. ___ module helps the employees to interact with the HR regarding any queries.
Ans. Employee self service

44. ERP systems also maintain policy information of an organisation. (True / False)
Ans. True

45. How is security of information maintained by deploying ERP Human Resources?
Ans. By maintaining an automatic centralised database

46. What is ERP financial module?
Ans. The system that maintains the financial information from various units of an organisation.

47. ___ creates multiple views of legal entities of an organisation.
Ans. Legal Consolidation

48. Balance sheets and financial reports of an organisation are maintained by _.
Ans. Advanced reporting and analysis

49. Cash management systems keep track of liquidity of an organisation. (True / False)
Ans. False

50. What is a General Ledger?
Ans. Organisations accounting records


Enterprise Resource Planning MCQs with Answers has provided readers a comprehensive overview of the fundamentals of this important business software.

They now understand its main components and how it helps organizations improve their processes, increase efficiency and become more competitive in the marketplace. Furthermore, readers have been presented with 50 practice questions that help them review the key concepts covered in this article.

With the knowledge gained from this article, they are now better equipped to confidently navigate ERP systems and make informed decisions when it comes to their businesses.

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