Which of the Following Statements About Electronic Data Interchange Is

question 118

Multiple Choice

Which of the following statements about electronic data interchange is FALSE?

• A) Inventory information is automatically updated.
• B) EDI has not yet spread to international markets.
• C) A customer transmits its order information directly to the supplier's computer.
• D) EDI is very common in the United States.
• E) EDI puts information into a standardized format.

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Definitions:

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage, indicating the portion of each dollar of revenue that results in net income.

Gross Profit Margin

A financial metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its production costs.

Operating Expenses

Costs incurred through normal business operations, such as rent, utilities, and payroll, that are not directly tied to production.

Periodic Inventory System

A system where inventory levels and cost of goods sold are determined at the end of the accounting period, rather than continuously.