The TCO of an ERP System Includes Getting the System

question 15

Multiple Choice

The TCO of an ERP system includes getting the system installed and also the cost of running the system for ________ years afterward.

• A) two
• B) five
• C) ten
• D) twenty
• E) none of the above

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Definitions:

Conversion Cost

The sum of direct labor and manufacturing overhead costs that are required to transform raw materials into finished goods.

Depreciation

The methodical distribution of the expense of a physical asset throughout its expected lifespan.

Oven

An enclosed compartment, usually part of a stove, used for cooking and baking.

Factory Supplies

Items used in the manufacturing process that are not directly part of the final product, including cleaning supplies, tools, and machinery maintenance materials.