In Electronic Data Interchange (EDI), the Software That Includes the Purchasing

question 17

Multiple Choice

In Electronic Data Interchange (EDI) , the software that includes the purchasing system at the origin and the order entry system at the destination is known as

• A) translation software
• B) value-added network (VAN)
• C) the communications network
• D) application software

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees who are directly involved in the production process, typically used as a base for applying manufacturing overhead costs.

Overhead Cost

Indirect costs of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming for more precise cost allocation.

Machine-Hours

Represents the amount of time machines are operational during production, critical for planning and cost allocation purposes.