2. Understanding the interrelationship existing between the different function areas within an organization is an example of a. benefit / cost ratio b. cost-and-effect analysis c. plan-do-check-act d. systems thinking

3. Quantifying the need for change is an important early step in implementing an ERP system because it helps a. assign the project manager b. establish the organizations human resources plan c. determine the implementation plan d. garner management and employee support

4. Improved employee satisfaction is a. an installation cost b. a non-financial benefit c. an ongoing cost d. a tangible financial benefit

5. Customer service benefits are those that a. improve the efficiency of the customer service department b. improve customer service level in the eyes of customers c. improve the job satisfaction of customer service employees d. reduce the paperwork of customer service employees

6. A software maintenance agreement is an example of a. an acquisition cost b. an installation cost c. an ongoing cost d. a long-term benefit

7. If expected ERP benefits are $1,500,000 and total costs are $1,200,000, the benefit/cost ratio is a. 0.8 b. 1.25 c. 20% d. 25%

8. If expected ERP benefits are $2,000,000 and total costs are $1,500,000, the ROI is a. 0.75 b. 1.33 c. 25% d. 33%

9. An ERP system is justified by a. benefits accruing from its implementation b. borrowing funds from a bank c. an increase in prices to customers d. setting up an independent subsidiary

10. The strongest reason an ERP project should be undertaken by a company is a. the number of people required will be less b. the internal financial systems can be linked to the operational system c. the company cannot compete without an integrated system, resulting in shrinking market share d. the return on investment (ROI) calculated for the ERP project meets the minimum return required