When Companies Use an Enterprise Resource Planning System to Roll

question 55

True/False

When companies use an enterprise resource planning system to roll up or consolidate the budgets of the individual business units, it is more difficult for managers to conduct sensitivity analysis on their own budget data.

---

Definitions:

Infinite Projections

Speculative forecasts that extend indefinitely into the future, often used in theoretical models and not typically applicable in practical financial analysis.

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation used for tax purposes in the United States, allowing businesses to recover investments in certain property through deductions over a specified life.

Equipment

Tangible physical assets used in the operation of a business, such as machinery, computers, or tools.

Buildings

Structures that are constructed for residency, business, storage, or other purposes, recognized as fixed assets on a balance sheet.