Which of the Following Is True About ERP Systems

question 71

Multiple Choice

Which of the following is true about 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.

---

Definitions:

Conversion Costs

The total expenses of direct labor plus the manufacturing overheads used in transforming raw materials into completed products.

Equivalent Units

A measure used in process costing that represents the incomplete work in a production process as a certain number of fully completed units.

Cost Reconciliation

The process of analyzing and adjusting the differences between the reported cost and the actual cost to ensure accuracy in financial records.

Equivalent Units

A concept used in cost accounting to normalize mixed units of production into a singular unit count, facilitating cost analysis.