Which of the Following Is Not a Benefit of a Well-Developed

question 67

Multiple Choice

Which of the following is not a benefit of a well-developed ERP system?

• A)It is relatively inexpensive to customize.
• B)It can integrate all of the operations of a firm.
• C)It can reduce transaction costs.
• D)It can increase speed of information.

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Definitions:

Invested Capital

The total amount of money invested into a company by shareholders and debtors, used to fund the company's operations and growth.

Residual Income

Income that remains after all costs and expenses, including a charge for capital, have been deducted.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit of the investment by its initial cost.

Cost Of Capital

Cost of capital represents the return rate that a company must achieve to maintain its market value, affecting its ability to invest in new projects or assets.