What Is Considered One Disadvantage of an Enterprise Resource Planning

question 50

Multiple Choice

What is considered one disadvantage of an enterprise resource planning (ERP) system?
Variant question

• A)The use of standard costing systems is not allowed
• B)The systems increase lead times when purchasing material from a supplier
• C)The systems must often be customised to fit the strategic needs of the user
• D)These systems are not in accordance with Generally Accepted Accounting Principles (GAAP)

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Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly used in the United States.

Business Entity Assumption

An accounting principle that treats a business as a separate legal entity from its owners, requiring separate accounting records.

Personal Financial Information

Data related to an individual's finances, including income, debt, investments, and credit history.

Sole Stockholder

An individual or entity that is the only owner of all the shares of a company.