Which of the Following Is a Potential Benefit of an ERP

question 11

Multiple Choice

Which of the following is a potential benefit of an ERP system?

• A) easy to implement
• B) streamlined work processes
• C) access to data with more redundancy
• D) low initial investment in time and money

---

Definitions:

Direct Labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating the contribution towards covering fixed costs.

Fixed Costs

These are expenses that do not change with the level of output or sales, such as rent, salaries, and insurance.

Variable Selling

Expenses related to sales that vary with the level of sales activity, such as commissions or shipping costs.