Wayne Is Looking at the Business Processes That Are Critical

question 165

Multiple Choice

Wayne is looking at the business processes that are critical in his firm.The processes include procurement,inventory management,purchasing,shipping,production planning,production scheduling,material requirements planning,quality control,distribution,transportation execution,and plant and equipment maintenance.Which of the business processes supported by enterprise software is most critical for this firm?

• A)financial and accounting processes
• B)human resources processes
• C)manufacturing and production processes
• D)sales and marketing processes processes

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Definitions:

Material Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantities purchased.

Standard Quantity

The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Direct Materials

Raw materials that are directly traceable to the finished product and constitute a significant part of its costs.