Which of the Following Is an Example of an ERP

question 21

Multiple Choice

Which of the following is an example of an ERP system?

• A)Alexis uses a computerized information system to keep track of all the financial data generated by her bakery.She is considering opening a new bakery on the east side of town.
• B)Betty has a system that keeps track of the accounts payable and receivable for her plumbing business.At the end of the year,the system helps her to prepare her taxes in just two hours.
• C)Charlie keeps records of all his business records in a shoe box.Each week he enters all of the data into spreadsheets that automatically generate purchase orders,based on predetermined inventory reorder points.Production quotas for the coming week are also automatically generated based on customer orders.
• D)Doug is a freelance photographer.He keeps records of all expenses and revenues on his cell phone and then e-mails them to himself every month.The files are stored on his personal computer and backed up to CD quarterly.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Factory Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor, such as utilities, maintenance, and managerial salaries.

Direct Labor Dollars

The total amount of money spent on wages for employees who are directly involved in the production of goods.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the accounting period begins based on estimated costs and activity levels.