The Division Manager at Xperience Inc

question 103

Multiple Choice

The division manager at Xperience Inc. wants to replace the SAP ERP currently used in his division with Epicor ERP as it costs 30 percent less to train new staff in Epicor ERP. But this leads to a conflict with the general manager, who insists that they can simply hire only people who already know how to use SAP ERP. Which of the following, if true, weakens the general manager's objection to the replacement of SAP ERP with Epicor ERP?

• A) Currently all employees in the company are required to attend workshops on how to use SAP ERP.
• B) Once employees learn how to use an ERP system, they tend to change employers more readily than before.
• C) Experienced users of SAP ERP command much higher salaries than do prospective employees who have no experience in the use of any ERP.
• D) The average productivity of employees in the company is below the average productivity of the employees of its competitors.
• E) The high costs of updates and upgrades make Epicor ERP more expensive to maintain than SAP ERP.

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Definitions:

Factory Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and management salaries, excluding direct labor and materials.

Advertising Expense

Costs incurred in promoting products, services, or the brand itself through various media channels.

Selling

The process of persuading customers to purchase goods or services from a company.

Administrative Expense

Expenses related to the management and overall operations of a company, which do not directly tie to the manufacturing or selling of products or services.