Which of the Following Statements Best Defines an Enterprise Resource

question 42

Multiple Choice

Which of the following statements best defines an enterprise resource planning (ERP) system?

• A) a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line as planned by enterprise resource management
• B) a system that comprises a single database that collects data and feeds it into software applications supporting all of a company's business activities
• C) a planning system that omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods
• D) a system that is made up of work areas with different types of equipment grouped together to make related products

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly, resulting in equal depreciation expenses per year.

Fixed Asset Turnover Ratio

An efficiency ratio that measures a company's ability to generate net sales from its fixed-asset investments, such as property, plant, and equipment.

Asset Impairment Loss

A charge recognized when the carrying amount of an asset exceeds its recoverable amount, indicating the asset's value has declined.

Net Book Value

The value at which an asset is carried on a balance sheet, calculated as the original cost minus accumulated depreciation and impairment costs.