Consider the Following Short Case as You Respond to the Next

question 65

Multiple Choice

Consider the following short case as you respond to the next question: Scott and Logan are the CEO and CFO of MLN Corporation. The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones. They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system. A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation. Which of the following pieces of advice is most applicable to MLN?

• A)Form a smaller implementation team.
• B)Ensure that the implementation team has wider representation.
• C)Both A and B.
• D)Neither A nor B.

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Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold during the period.

Inventory Value

The total cost or market value of all the goods held by a company that are ready or will be ready for sale.

FIFO Inventory

An accounting method where the first items added to inventory are the first ones considered sold.

Net Realizable Value

The estimated selling price of goods minus the cost of completion and the costs necessary to make the sale.