Answer to Question 1
Enterprise resource planning (ERP) control refers to the locus of control over the computing systems and data contained in these systems, as well as decision-making authority. Companies either opt for centralized control or allow particular business units to govern themselves. In the context of ERP, these decisions are based on the level of detail in the information that must be provided to management. Some corporations want to have as much detail as possible made available at the executive level, whereas other companies do not require such access. For instance, an accountant in one company may want the ability to view costs down to the level of individual transactions, while an accountant in another company may want only summary information. Another area related to control involves the consistency of policies and procedures. Some companies prefer that policies and procedures remain consistent throughout an organization. Other companies want to allow each business unit to develop its own policies and procedures to accommodate the unique ways that they do business. ERP applications vary widely in their allowance for control, typically assuming either a corporate or a business-unit locus of control. Some ERP applications allow users to select or customize the locus of control. In either case, management must consider the ERP's stance on control to ensure that it will meet the business requirements of the company.
Answer to Question 2
D
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