Which of the Following Statements About EDI Is Not True

question 21

Multiple Choice

Which of the following statements about EDI is not true?

• A)EDI can have high setup costs
• B)EDI can result in increased inventory carrying costs
• C)EDI can lead to increased billing accuracy
• D)The Internet is likely a complement to,rather than substitute for,EDI

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services, an integral part of manufacturing costs.

Raw Materials

The basic substances used in production processes to create goods, often transformed or converted during the manufacturing.

Cost of Goods Available

The total cost of inventory that is available for sale during a given period.

Net Operating Income

The earnings from a company's core business operations, indicating the efficiency in managing its operational costs.