The Advantages of Electronic Data Interchange Are No Longer Limited

question 111

Multiple Choice

The advantages of electronic data interchange are no longer limited to large companies, because even small firms can exchange and process data such as orders, invoices, and payments using

• A) groupware.
• B) an extranet.
• C) spreadsheet software.
• D) integrated software suites.

Explain the concept of open and closed systems and their relevance to organizational structure.

Understand the criticisms of traditional human relations doctrine and how management theories evolve.

Illustrate the importance of viewing organizations as open systems and considering the external environment in management.

Appreciate the role of employee well-being and motivation in enhancing productivity.

---

Definitions:

Inventory Levels

The quantity of goods and materials on hand available for sale or used in production at any given time within a business.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in the cost of goods sold and treats fixed overhead expenses as period costs.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards used in the United States for preparing financial statements.

Variable Costs

Costs that vary directly with the level of production or sales volume.