A Chinese Furniture Company Implemented the SAP Module, but Failed

question 103

Multiple Choice

A Chinese furniture company implemented the SAP module, but failed. Which of the following is the most likely reason for its failure?

• A) it was not very secure
• B) it required placing valuable assets on servers in the cloud
• C) it was foreign-developed
• D) it was very expensive

Recognize the tax implications and advantages of different inventory costing methods.

Acknowledge the rules and applications of internal controls in inventory management.

Understand the basic principles of inventory valuation methods including FIFO, LIFO, and the lower of cost or market.

Recognize the impact of inventory valuation errors on financial statements and company performance indicators.

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Definitions:

Activity-Based Product Costing

A costing method that assigns costs to products based on the activities they require, focusing on the relationship between costs, activities, and products.

Product Line

A group of related products marketed by the same company under a single brand.

Cheap

An adjective describing products or services that are low in price, often implying lower quality or less prestige.

Differential Level Activity

Refers to changes in operating activities that result in differences in costs or revenues under different scenarios or volumes.