All of the Following Are Advantages of an Enterprise Resource

question 79

Multiple Choice

All of the following are advantages of an enterprise resource planning system except:

• A)helps companies adjust to changes.
• B)expensive to implement.
• C)can replace hundreds of separate software systems.
• D)can save lots of money.

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Definitions:

Fixed Manufacturing

Costs that do not vary with the level of production or sales, associated with the operation of a production facility.

Break-Even Level of Sales

The sales amount at which a company's total revenues equal its total expenses, resulting in no net profit or loss.

Variable Production Costs

Costs that fluctuate with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.

Monthly Fixed Cost

Expenses that do not change regardless of the level of production or sales, such as rent or salaries, calculated on a monthly basis.