Which of the Following Is a Disadvantage of an Enterprise

question 20

Multiple Choice

Which of the following is a disadvantage of an enterprise resource planning (ERP) system?

• A) The use of standard costing systems is not allowed in an ERP system.
• B) Shifting manufacturing and distribution plans rapidly in response to changes in supply and demand is not possible in an ERP system.
• C) The ERP systems must often be customized to fit the strategic needs of the user.
• D) The ERP system increases lead times when purchasing material from a different supplier.

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Definitions:

Bond Indenture

A legal contract between a bond issuer and bondholders detailing the characteristics of the bond, such as its maturity date, coupon rate, and payment schedule.

Bond Issuer

An entity, such as a corporation or government, that creates and sells bonds to finance its projects and operations.

Fiscal Year

A one-year period used for financial reporting and budgeting purposes, which does not necessarily align with the calendar year.

Semiannual Interest

Interest that's computed and disbursed semi-annually, commonly associated with bonds and loans.