The Advantage of Using a Suite with Synchronized Modules Is

question 72

Multiple Choice

The advantage of using a suite with synchronized modules is that ________.

• A)the switching costs are far lower for ERP systems with interdependent modules
• B)a common architecture overlays the systems to improve consistency across the modules
• C)the introduction of changes in such systems to meet new business needs takes little time
• D)modules can have very rich functionality and can be implemented individually, reducing risk

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Variable Costing

A financial recording method that counts only the variable expenses related to production (direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.

Variable Costing

A financial recording approach that incorporates only variable manufacturing expenses, such as raw materials, direct workforce, and fluctuating production overheads, into the costs of goods produced.

Net Operating Income

A financial term representing the profit made from a company’s operations, after subtracting operating expenses from operating income.