An Organization Implements an Information System to Optimize Its Supply

question 116

Multiple Choice

An organization implements an information system to optimize its supply chain. The system helps the organization decrease wastages. Hence, the system provides a competitive advantage to the organization. Here, the information system helped the organization achieve competitive advantage by ________.

• A) locking in customers
• B) reducing costs
• C) locking in suppliers
• D) differentiating the products

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead costs.

Control Account

A summary account in the general ledger that consolidates the details recorded in subsidiary ledgers for easier and more effective financial analysis.

Raw Materials Inventory

The stock of unprocessed materials used in the manufacturing process.

Factory Labor

Workforce involved in producing goods within a factory setting, often comprising a significant portion of production costs.