Which of the Following Is Not an Example of the Benefits

question 17

Multiple Choice

Which of the following is not an example of the benefits enterprise systems provide to firms?

• A) Products are shipped to stores more quickly.
• B) When products are ordered, the manufacturing and logistics teams are notified immediately.
• C) There is more accurate sales information for managers to analyze.
• D) The cost of information systems falls, making the firm more productive.

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Definitions:

Salvage Value

The estimated residual value of an asset after its useful life is over and it has been fully depreciated.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A calculation used to determine the present value of a series of future cash flows minus the initial investment, often used in capital budgeting.