Which of the Following Is True About ERP Systems

question 59

Multiple Choice

Which of the following is true about ERP systems?

• A) Because ERP systems are software based, they have given way to a more service-based economy.
• B) Because ERP systems track costs more efficiently, the benefit from the cost information outweighs the cost of obtaining the information.
• C) Because ERP systems track costs more efficiently, process costing systems are becoming more prevalent.
• D) Because 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.

Distinguish between relevant and irrelevant costs, including sunk costs, opportunity costs, and incremental costs, in project analysis.

Understand the impact of depreciation and tax shields on operating cash flows and the overall valuation of projects.

Apply the principles of incremental cash flow analysis in evaluating projects.

Grasp the significance of equivalent annual cost in project and asset evaluation.

---

Definitions:

Fixing Beneficial Allele

The process by which a favorable genetic variant becomes present in all individuals within a population due to natural selection.

Population Size

The total number of individuals within a defined area at a specific time.

Hardy-Weinberg Equilibrium

A rule indicating that in a population, allele and genotype frequencies will stay unchanged over time if there are no evolutionary forces at play.

Setae

Bristle-like structures on the surface of organisms, such as the hairs on worms or insects, used for sensory detection or locomotion.