What Is the Primary Goal of an ERP System

question 25

Multiple Choice

What is the primary goal of an ERP system?

• A) The integration of data processes and data storage
• B) Creating consistent definitions across all functional areas
• C) The efficient handling of the transactions as goods move through each step of the process
• D) The scheduling of machinery to minimize downtime and reduce scrap

---

Definitions:

Limited Resources

The finite availability of inputs (like labor, capital, and land) that are used for the production of goods and services.

Economics

A branch of social science that examines the methods by which people, governmental bodies, corporations, and states allocate finite resources to meet their infinite needs.

Opportunity Cost

The cost of foregone alternatives when a decision is made, essentially what is given up to undertake a certain action.

Alternative Use

speaks to the different ways an asset or resource can be utilized outside its current application, highlighting its opportunity cost.