Please Consider the Following Short Case as You Respond to the Question

question 5

Multiple Choice

Please consider the following short case as you respond to the question: Sue and Sally are partners in a small local bakery specializing in wedding and birthday cakes.They use a simple Excel spreadsheet to record journal entries and prepare financial statements and tax returns.Robert, the owner of a consulting company that installs and maintains ERP systems, has recently approached them about the possibility of implementing an ERP system in their operations.If they accept his offer, Robert will provide a series of online tutorials to help them learn about the new system.Sue and Sally believe the implementation of the ERP system will make it easier for them to borrow money to expand the bakery.Based on the information in the case, all parties need to be concerned with which of the following common causes of ERP implementation failure?

• A)Inaccurate data in the system
• B)Unrealistic expectations
• C)Both inaccurate data in the system and unrealistic expectations
• D)Neither inaccurate data in the system nor unrealistic expectations

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one extra unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition and efficiency.

Utility Functions

Represent mathematical models that quantify an individual's preference for certain bundles of goods or services under conditions of scarcity.

Public Good

An item or resource that cannot be withheld from anyone and whose consumption by one individual does not diminish its accessibility to others, characterized by being both non-excludable and non-rival.