Which of the Following Is True Due to the Advent

question 147

Multiple Choice

Which of the following is true due to the advent of ERP systems?

• A)As ERP systems are software based, they have given way to a more service-based economy.
• B)As ERP systems track costs more efficiently, the benefit from the cost information outweighs the cost of obtaining the information.
• C)As ERP systems track costs more efficiently, large quantities of similar products can be produced at lower costs.
• D)As ERP systems have the ability to trace all production costs to individual units, all product costs can now be classified as either direct materials or direct labor.

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Definitions:

Optimal Capital Structure

The best mix of debt and equity financing that minimizes the company's cost of capital and maximizes its value.

Weighted Average Cost of Capital

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.