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

---

Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead from inventory valuation.

Fixed Overhead

Recurring operating expenses that remain relatively constant regardless of the level of production or business activity.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Inventory

Products and items that a company keeps with the final intention of selling or further processing.