Chapter 2

INTRODUCTION TO SAP ERP

Multiple Choice Questions

1. Which term relates to the technical capabilities that allow systems to connect with one another through standardized
interfaces called Web services?

a. Enterprise Resource Planning

b. Supply Chain Management
c. Architecture
d. Service-Oriented Architecture
e. None of the above

Answer: d Difficulty: Medium Page Reference: 2

Section: Enterprise Systems

2. Which term refers to the technical structure of the software, how users interact with the software, and how the software
is physically managed on computer hardware?

a. Architecture
b. Supply Chain Management
c. Enterprise Resource Planning
d. Service Oriented Architecture
e. None of the above

Answer: a Difficulty: Medium Page Reference: 1

Section: Enterprise Systems

3. Which of the following is used to integrate several client-server applications and create enterprise mash-ups, or
composite applications?

a. Management System
b. Accounting System
c. Enterprise System
d. All of the above
e. Web Services

Answer: e Difficulty: Medium Page Reference: 2

Section: Enterprise Systems

4. Which system connects a company’s ERP system to those of its customers?

a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)
e. None of the above

Answer: b Difficulty: Medium Page Reference: 4

Section: Enterprise Systems

5. Which of the following systems helps companies administer the processes of research, design, and product
management?

a. Application Platform
b. Customer Relationship Management (CRM)
c. Enterprise Solution
d. Product Lifecycle Management (PLM)
e. None of the above

Answer: d Difficulty: Medium Page Reference: 4

Section: Enterprise Systems
 6. Which program is the “operating system” for an entire company’s business processes?

a. Microsoft Vista
b. Linux
c. SAP NetWeaver
d. SAP Prolific
e. None of the above

Answer: c Difficulty: Medium Page Reference: 5

Section: Application Platforms

7. The highest organizational level in SAP ERP is the

a. Vendor
b. Client
c. Material Master
d. Plant
e. None of the above

Answer: b Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data

8. Which of the following is(are) used to represent the structure of an enterprise?

a. Organizational Data
b. Project Management
c. Client
d. Plant
e. Lifecycle Data Management

Answer: a Difficulty: Easy Page Reference: 6

Section: Data in an Enterprise System – Organizational Data

9. Which of the following terms refers to an organizational element that performs multiple functions and is relevant to
several processes?

a. Warehouse
b. Procurement
c. Plant
d. Fulfillment
e. Lifecycle Data Management

Answer: c Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data

10. How many company codes can a plant belong to?

a. One
b. Two
c. Three
d. Any Number

Answer: a Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Organizational Data

11. Which of the following master data is used in numerous processes?

a. Material Master
b. Plant
c. Company Code
d. Customer Master
e. Vendor Master

Answer: a Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data
12. Materials that are created by the production process from other materials are referred to as _____________

a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials
e. None of the above

Answer: a Difficulty: Medium Page Reference: 10

Section: Data in an Enterprise System – Master Data

13. What type of materials is purchased from a vendor?

a. Trading Goods
b. Finished Goods (FERT)
c. Semi-finished Goods (HALB)
d. Material Types
e. None of the above

Answer: a Difficulty: Difficult Page Reference: 10

Section: Data in an Enterprise System – Master Data

14. Materials that are purchased from an external source (a vendor) and used in the production process are known as
______________

a. Finished Goods (FERT)

b. Semi-finished Goods (HALB)
c. Trading Goods (HAWA)
d. Raw Materials
e. None of the above

Answer: d Difficulty: Easy Page Reference: 10

Section: Data in an Enterprise System – Master Data

15. Which of the following terms refers to materials with similar characteristics?

a. Material Master
b. Material Group
c. Transaction Data
d. Material number
e. None of the above

Answer: b Difficulty: Easy Page Reference: 11

Section: Data in an Enterprise System – Master Data

16. ____________reflect(s) the consequences of executing process steps.

a. Material Groups
b. Organizational Data
c. Transaction Data
d. Project Management
e. None of the above

Answer: c Difficulty: Medium Page Reference: 12

Section: Data in an Enterprise System – Transaction Data

17. Financial accounting (FI) documents, management accounting or controlling (CO) documents, and material documents
are referred to as

a. Transaction Documents
b. Transaction Data
c. Material Group
d. Virtual Documents
e. None of the above

Answer: d Difficulty: Difficult Page Reference: 13

 Section: Data in an Enterprise System – Transaction Data

18. Which term is generally used to describe the ways that users can view and analyze data to help them make decisions
and complete their tasks?

a. Reporting
b. Evaluating
c. Characteristics
d. Period Definition
e. Online Analytic Processing (OLAP)

Answer: a Difficulty: Easy Page Reference: 14

Section: Data in an Enterprise System – Reporting

19. Which of the following is(are) used to capture specified transaction data in an aggregated and summarized form that
enables users to analyze the data as needed.

a. Reporting
b. Evaluating
c. Information Structures
d. Period Definition
e. Online Analytic Processing (OLAP)

Answer: c Difficulty: Medium Page Reference: 15

Section: Data in an Enterprise System – Reporting

20. Which of the following identify tasks that are scheduled to be completed in a process?

a. Online Lists
b. Parameters
c. Information Structures
d. Work Lists
e. Period definitions

Answer: d Difficulty: Medium Page Reference: 16

Section: Reporting – Work Lists

Multiple Answer Questions

1. A three-tier architecture includes which of the following components?

a. Operating system layer

b. Data layer
c. Presentation layer
d. Application layer
e. Network layer

Answer: b, c, d Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems

2. Which of the following statements concerning Web services are true?

a. Web services expose functionality to other applications.

b. One Web service can be used to execute multiple steps in a process.
c. Web services have standard interfaces for input and output.
d. Web services are an essential component of enterprise systems.
e. Web services can be used to create composite applications.

Answer: a, d, e Difficulty: Difficult Page Reference: 2

Section: Enterprise Systems – Client-Server Architecture

3. Which of the following SAP systems are used to support inter-company processes? (2 correct answers)

a. SAP ERP
b. SAP SCM
c. SAP CRM
 d. SAP BI
e. SAP Netweaver

Answer: b, c Difficulty: Medium Page Reference: 4

Section: Enterprise Systems

4. Which of the following SAP systems are used to support inter-company processes?

f. SAP SCM
g. SAP CRM
h. Production planning (PP) module
i. Materials management (MM) module
j. Strategic enterprise management (SEM) module

Answer: a, b Difficulty: Medium Page Reference: 4

Section: Enterprise Systems

5. Which of the following statements regarding organizational data are true?

a. Organizational data represent entities such as customers and vendors.

b. Organizational data define the structure of an enterprise.
c. Organizational data are a consequence of the execution of process steps.
d. Organizational data are constantly changing.
e. Organizational data change infrequently.

Answer: a, b Difficulty: Medium Page Reference: 6

Section: Data in an Enterprise System – Organizational Data

6. Which of the following statements regarding master data are true?

a. Master data represent entities such as customers and vendors.

b. Master data define the structure of an enterprise.
c. Master data are a consequence of the execution of process steps.
d. Master data are constantly changing.
e. Master data change infrequently.

Answer: a, c Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise Systems – Master Data

7. Which of the following statements concerning transaction data are true?

a. Transaction data represent entities such as customers and vendors.

b. Transaction data define the structure of an enterprise.
c. Transaction data are a consequence of the execution of process steps.
d. Transaction data are constantly changing.
e. Transaction data change infrequently.

Answer: c, d Difficulty: Medium Page Reference: 12

Section: Enterprise Systems – Transaction Data

8. Which of the following are examples of organizational data in SAP?

a. Client
b. Customer
c. Purchasing Organization
d. Vendor
e. Plant

Answer: a, b, d Difficulty: Medium Page Reference: 6

Section: Data in an Enterprise System – Organizational Data

9. Which of the following are examples of master data in SAP?

a. Client
b. Customer
c. Purchasing Organization
 d. Vendor
e. Plant

Answer: b, d Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data

10. A plant can be used to represent which of the following?

a. A factory
b. A storage facility (warehouse, DC)
c. An office
d. A legal entity
e. A company vehicle

Answer: a, b, c Difficulty: Easy Page Reference: 8

Section: Data in an Enterprise System – Organizational Data

11. Material master data are grouped based on:

a. Process
b. Material type
c. Company Code
d. Organizational Element
e. Key segments

Answer: b, c, d Difficulty: Medium Page Reference: 9

Section: Data in an Enterprise System – Master Data

12. Which of the following statements regarding instance level reporting are true?

a. It provides the status of one occurrence of a process (e.g., one customer order).
b. It provides information on the performance of a process across many occurrences (e.g., customer orders over
time).
c. It is based on data in the transactional system.
d. It is based on data in the informational system.
e. It uses aggregated data.

Answer: a, c Difficulty: Medium Page Reference: 15

Section: Reporting

13. Which of the following statements regarding process level reporting are true?

a. It provides the status of one occurrence of a process (e.g., one customer order).
b. It provides information on the performance of a process across many occurrences (e.g., customer orders over
time).
c. It is based on data in the transactional system.
d. It is based on data in the informational system.
e. It uses aggregated data.

Answer: b, c, e Difficulty: Difficult Page Reference: 15

Section: Reporting

14. Which of the following are examples of online lists?

a. Picking list
b. Billing due list
c. List of customers
d. Delivery due list
e. List of documents

Answer: c, e Difficulty: Medium Page Reference: 17

Section: Reporting - Online Lists

15. Which of the following are examples of work lists?

a. Picking list
b. Billing due list
 c. List of customers
d. Delivery due list
e. List of documents

Answer: a, b, d Difficulty: Medium Page Reference: 16

Section: Reporting - Work Lists

16. Supply chain management deals with

a. Managing relationships with suppliers

b. Planning for production demand requirements
c. Optimizing transportation and logistics for materials
d. Providing data to help manage sales

Answer: b, c Difficulty: Medium Page Reference: 4

Section: Enterprise Systems – Enterprise Resource Planning System

17. Which of the following statements concerning SAP NetWeaver are true?

a. It deals exclusively with processes that are executed within a company.

b. It helps companies integrate with other non-SAP applications.
c. It serves as the application platform on which the SAP Business Suite runs.
d. It enables companies to plug in independent software vendor (ISV) applications on top of their core ERP and
suite applications.

Answer: b, c, d Difficulty: Medium Page Reference: 5

Section: Enterprise Systems – Application Platform

18. Plant is an organizational element where

a. Financial accounting takes place

b. Products and services are created
c. Production planning is carried out
d. Services and maintenance is performed

Answer: b, c, d Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise Systems – Organizational data

19. Transaction data make use of which types of data?

a. Master
b. Organizational
c. Situational
d. None of the above

Answer: a, b, c Difficulty: Medium Page Reference: 12

Section: Data in an Enterprise Systems – Transaction data

20. Information structures enable which types of analysis?

a. Standard analysis
b. Flexible analysis
c. Rigid analysis
d. All of the above

Answer: a, b Difficulty: Medium Page Reference:19

Section: Reporting – Information Systems

True – False Questions

1. The architecture of an enterprise system refers to the technical structure of the software, how users interact with the
software, and how the software is physically managed on computer hardware.

Answer: True Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems
 2. The three layers of the “three-tier client-server architecture” are the presentation layer, windows layer, and data layer.

Answer: False Difficulty: Medium Page Reference: 1

Section: Enterprise Systems – Architecture of Enterprise Systems

3. When you access the Internet, your browser is the presentation layer.

Answer: True Difficulty: Medium Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems

4. Scalability is the ability of the hardware and software to support a greater number of users easily over time.

Answer: True Difficulty: Easy Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems

5. Service-oriented architecture (SOA) is the fundamental concept behind systems connecting through standardized
interfaces called Web services.

Answer: True Difficulty: Difficult Page Reference: 2

Section: Enterprise Systems – Architecture of Enterprise Systems

6. Enterprise resource planning (ERP) focuses on the internal operations of an organization.

Answer: True Difficulty: Medium Page Reference: 3

Section: Enterprise Planning Systems

7. Inter-company processes take place within a single company.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems

8. Customer relationship management (CRM) systems connect a company’s ERP system to its accounting software
system.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems

9. Supply chain management (SCM) systems help companies execute the processes of research, design, and product
management.

Answer: False Difficulty: Medium Page Reference: 4

Section: Enterprise Planning Systems

10. Application platforms serve as a type of "enterprise operating system" for a company’s ES landscape by allowing all
of the various systems to communicate seamlessly with one another as well as with systems outside the company.

Answer: True Difficulty: Medium Page Reference: 5

Section: Application Platforms

11. Current versions of the SAP business suite can’t run on SAP NetWeaver.

Answer: False Difficulty: Easy Page Reference: 6

Section: Application Platforms

12. SAP NetWeaver is the “operating system” for an entire company’s business processes.

Answer: True Difficulty: Medium Page Reference: 6

Section: Application Platforms

13. Organizational data are used to represent the structure of an enterprise.

Answer: True Difficulty: Easy Page Reference: 6

Section: Data in an Enterprise System – Organizational Data

14. A company code is the highest organizational level in SAP ERP.

 Answer: False Difficulty: Medium Page Reference: 7
Section: Data in an Enterprise System – Organizational Data

15. A client represents each company within an enterprise.

Answer: False Difficulty: Easy Page Reference: 7

Section: Data in an Enterprise System – Organizational Data

16. Material master are organizational elements that performs multiple functions and is relevant to several processes.

Answer: False Difficulty: Medium Page Reference: 7

Section: Data in an Enterprise System – Organizational Data

17. A building can house only a single plant.

Answer: False Difficulty: Difficult Page Reference: 8

Section: Data in an Enterprise System – Organizational Data

18. A plant can be a factory, a warehouse, a regional distribution center, or a service center.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Organizational Data

19. The material master is the most commonly used organizational data in an enterprise.

Answer: False Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data

20. The material master includes a large amount of data because it is used in numerous processes.

Answer: True Difficulty: Medium Page Reference: 8

Section: Data in an Enterprise System – Master Data

21. Materials are categorized into different material types based on the way they are used in the firm’s operations.

Answer: True Difficulty: Medium Page Reference: 9

Section: Material Types

22. The four most common material types are raw materials, semi‐finished goods, finished goods, and exported goods.

Answer: False Difficulty: Difficult Page Reference: 9

Section: Material Types

23. Raw materials (ROH) are purchased from an external source ‐ a vendor‐ and used in the production process.

Answer: True Difficulty: Easy Page Reference: 10

Section: Material Types

24. Trading goods (HAWA) are resold to customers after they have been modified by the company.

Answer: False Difficulty: Medium Page Reference: 10

Section: Material Types

25. Transaction data reflect the consequences of executing process steps.

Answer: True Difficulty: Medium Page Reference: 12

Section: Enterprise Systems – Transaction Data

26. The financial accounting documents, management accounting or controlling documents, and material documents are
all “virtual.”

Answer: True Difficulty: Medium Page Reference: 13

Section: Enterprise Systems – Transaction Data

27. Reporting is a general term for the methods a user can utilize to update data in the ERP system to execute process steps.
 Answer: False Difficulty: Medium Page Reference: 14
Section: Reporting

28. The online transaction processing (OLTP) system is designed to capture and store detailed organizational data.

Answer: False Difficulty: Medium Page Reference: 15

Section: Reporting

29. Work lists identify tasks that are scheduled to be completed in a process.

Answer: True Difficulty: Medium Page Reference: 16

Section: Reporting – Work Lists

30. Information structures display lists of master data, such as materials, vendors, and purchasing info records, and
documents, such as transaction documents, FI, CO, and material documents that are generated during the execution of
a process.

Answer: False Difficulty: Medium Page Reference: 17

Section: Reporting – Online Lists