You Are Consulting for a Cosmetics Distributor Who Is Interested

question 19

Multiple Choice

You are consulting for a cosmetics distributor who is interested in determining the benefits it could achieve from implementing new information systems.What will you advise as the first step?

• A)Identify the business ecosystem the distributor is in.
• B)Implement a strategic transition to the new system.
• C)Perform a strategic systems analysis.
• D)Benchmark existing systems.
• E)Set up a strategic transition.

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.

Depreciation Expenses

The systematic allocation of the cost of a tangible asset over its useful life.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a firm that are due to be paid to creditors within a short period of time, usually within a year.