Which Statement Is True of Electronic Data Interchange (EDI)

question 108

Multiple Choice

Which statement is true of electronic data interchange (EDI) ?

• A)It uses proprietary protocols and networks.
• B)It is more beneficial when there are more companies in its network.
• C)When Web-based EDI is used, the process of sales forecasting is disrupted.
• D)When it uses the Internet and Web protocols, the cost of transmitting documents increases.

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Definitions:

Diseconomies of Scale

occur when a company or production process becomes less efficient as it scales up, leading to increased average costs per unit.

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-term average cost, allowing it to be competitively viable.

3-D Printers

3-D printers are machines that create three-dimensional objects by adding material layer by layer, based on digital models.

Third Industrial Revolution

The period characterized by the digital revolution and the use of electronics and information technology to automate production.