Which of the Following Is a Disadvantage of an Enterprise

question 20

Multiple Choice

Which of the following is a disadvantage of an enterprise resource planning (ERP) system?

• A) The use of standard costing systems is not allowed in an ERP system.
• B) Shifting manufacturing and distribution plans rapidly in response to changes in supply and demand is not possible in an ERP system.
• C) The ERP systems must often be customized to fit the strategic needs of the user.
• D) The ERP system increases lead times when purchasing material from a different supplier.

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Definitions:

Cash Collections

The process or total amount of cash received from customers for goods or services.

Cost of Goods Sold

This refers to the direct costs attributable to goods produced and sold by a business, including materials, labor, and overhead expenses.

Merchandise Inventories

Goods and products that a company holds for the purpose of resale to customers.

Sales Budget

An estimate of the expected sales revenue a company aims to achieve in a specific period, including both volume and value of sales.