What Is One Primary Benefit of an Enterprise Resource Planning

question 49

Multiple Choice

What is one primary benefit of an enterprise resource planning (ERP) system?

• A)It reduces inventory levels.
• B)It permits companies to be more streamlined in production.
• C)It replaces research and development in a company.
• D)It requires an increased emphasis on product quality.

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Definitions:

Externally Restricted Contribution

Funds received by an organization that are designated for specific purposes by the donor, restricting their use by the recipient.

General Fund

The principal fund of a governmental entity, covering most basic operational activities and services.

Deferral Method

An accounting practice where revenue or expenses are recognized at a date later than when they were initially incurred, often applied to revenue received in advance or prepayments of expenses.

Pledge

A commitment or security for the payment of a debt, performance of an action, or purchase of a good.