Which of the Following Is Not a Potential Drawback of an ERP

question 49

Multiple Choice

Which of the following is not a potential drawback of an ERP system?

• A)Training employees on the use of the new software can be expensive.
• B)The software is costly to customize.
• C)The software is expensive to buy.
• D)The implementation may require a company to change its normal operations.
• E)It does not incorporate inventory control decisions.

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Definitions:

Factory Overhead

The indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Current Asset

Resources anticipated to be transformed into cash, disposed of, or utilized within one year or during the business's standard operating period.

Depreciation Expense

An accounting method that spreads the purchase cost of a physical asset minus its salvage value over its expected useful life.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, depreciation, and salaries for managerial staff, not directly tied to production.