SAP Helped CBI Overcome the Problems of Its Old Procurement

question 25

Multiple Choice

SAP helped CBI overcome the problems of its old procurement process by ________.

• A) bringing all the data into one place for use in real time
• B) establishing independent functional databases
• C) avoiding the process of checking three-way matches
• D) creating accounting, sales, and operational databases

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Definitions:

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Fair Value Method

An accounting approach that assesses and assigns a price to a company's assets and liabilities based on current market value.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan on the basis on an effective interest rate rather than the nominal rate.