Which of the Following Statements Is True of Electronic Data

question 73

Multiple Choice

Which of the following statements is true of electronic data interchange (EDI) ?

• A) It helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools.
• B) It allows companies to exchange information by purposely providing outsiders with direct access to authorized parts of the company's intranet.
• C) It works only if the data in different companies' computer, database, and network systems adheres to a particular set of standards for data structure and processing.
• D) It requires human inputs to carry out the interactions between the different purchasing and ordering applications in companies.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns the same average cost to each unit of inventory, calculated as the total cost of goods available for sale divided by the total units available.

Cost Reconciliation

The process of verifying and adjusting the cost of a production process or manufacturing order to reflect actual costs incurred.

Work in Process Inventory

The value of all unfinished goods currently in production, including materials, labor, and overhead costs up to the point of calculation.

Units Transferred Out

A rephrased definition is: The quantity of products that have completed a particular stage of the production process and are moved to the next stage or finished goods inventory.