ERP Systems (e.g., SAP) MCQs

1. What does ERP stand for?
(A) Enterprise Resource Planning
(B) Efficient Resource Planning
(C) Enterprise Risk Prevention
(D) Effective Resource Process

2. Which of the following is a key feature of ERP systems?
(A) Decentralized data management
(B) Integrated data across departments
(C) Standalone applications for each department
(D) Manual report generation

3. Which ERP system is widely recognized as an industry leader?
(A) SAP
(B) Excel
(C) PowerPoint
(D) Google Docs

4. What is the main purpose of an ERP system?
(A) To manage individual business processes
(B) To streamline and integrate business processes
(C) To serve as a financial reporting tool
(D) To improve social media management

5. Which module in ERP systems manages employee payroll and records?
(A) Customer Relationship Management (CRM)
(B) Human Resource Management (HRM)
(C) Financial Management
(D) Warehouse Management

6. What does the Supply Chain Management (SCM) module primarily focus on?
(A) Employee relations
(B) Managing production and logistics
(C) Tracking customer behavior
(D) Generating financial reports

7. Which is a common benefit of implementing ERP systems?
(A) Increased data silos
(B) Improved efficiency and data sharing across departments
(C) Reduced system flexibility
(D) Isolated department-specific software

8. Which ERP system module is primarily used for inventory management?
(A) Financial Management
(B) Warehouse Management
(C) Customer Relationship Management
(D) Human Resource Management

9. What does the term “real-time data” mean in an ERP system?
(A) Data updated instantly as changes occur
(B) Data processed at specific intervals
(C) Data stored for long-term archival
(D) Data accessed only during working hours

10. What is a major challenge of ERP implementation?
(A) Low cost
(B) Resistance to change by employees
(C) Lack of data integration
(D) Inability to automate processes

11. Which ERP module helps in managing customer relationships?
(A) Supply Chain Management
(B) Customer Relationship Management
(C) Financial Management
(D) Warehouse Management

12. What is the primary advantage of a cloud-based ERP system?
(A) High initial costs
(B) Limited accessibility
(C) Scalability and remote access
(D) Complex maintenance requirements

13. Which industry commonly uses ERP systems?
(A) Manufacturing
(B) Retail
(C) Healthcare
(D) All of the above

14. What does the Financial Management module in ERP systems handle?
(A) Inventory tracking
(B) Financial planning and reporting
(C) Employee recruitment
(D) Customer engagement

15. What does the Human Resource Management (HRM) module manage?
(A) Supply chain operations
(B) Payroll, recruitment, and performance
(C) Financial records
(D) Inventory tracking

16. Which feature of ERP enables informed decision-making?
(A) Manual processes
(B) Real-time data integration
(C) Isolated departmental data
(D) Standalone operations

17. What is a common risk during ERP implementation?
(A) Increased automation
(B) Employee resistance to change
(C) Enhanced collaboration
(D) Reduced scalability

18. Which ERP module is used for supply chain optimization?
(A) Customer Relationship Management
(B) Supply Chain Management
(C) Warehouse Management
(D) Financial Management

19. Which ERP module is primarily responsible for managing raw materials and inventory?
(A) Warehouse Management
(B) Financial Management
(C) Customer Relationship Management
(D) Human Resource Management

20. Which ERP module generates invoices and tracks expenses?
(A) Financial Management
(B) Supply Chain Management
(C) Human Resource Management
(D) Warehouse Management