Which of the Following Statements Best Defines an Enterprise Resource

question 42

Multiple Choice

Which of the following statements best defines an enterprise resource planning (ERP) system?

• A) a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line as planned by enterprise resource management
• B) a system that comprises a single database that collects data and feeds it into software applications supporting all of a company's business activities
• C) a planning system that omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods
• D) a system that is made up of work areas with different types of equipment grouped together to make related products

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Definitions:

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Future Earnings

Projected profits or income a company expects to generate in future periods.

Prior Period Adjustment

Corrections of errors in previously published financial statements not related to the current period.

Income Statement

A report detailing a company’s financial activities, including income and expenditures, over a designated accounting timeframe.