An Enterprise Resource Planning System

question 57

Multiple Choice

An enterprise resource planning system

• A)increases the quality of the data of a transaction subsystem.
• B)decreases the costs for a business.
• C)increases information sharing between business processes.
• D)decreases the complexity of business systems.

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Definitions:

Indirect Expense

Costs incurred that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Department Store

A retail establishment offering a wide range of consumer goods in different product categories known as "departments."

Profit Center

A department or unit within a company responsible for generating profits, with its performance measured based on its ability to produce excess revenue over expenses.