Lessons Learned from ERP Failures Include Each of the Following

question 64

Multiple Choice

Lessons learned from ERP failures include each of the following except:

• A) Several of the best companies have suffered devastating consequences from ERP failures that had led to multi-million dollar losses, bankruptcy, or lawsuits.
• B) Most often, ERP failures are eventually fixed and remain in use, which gives the false impression that the ERP was successful from the start.
• C) The success-as well as failure-of ERP depends on organizational and technological factors that occur prior to, during, and after the implementation.
• D) Vendor blogs, white papers, and YouTube posts are good sources of objective data for selecting a compatible ERP solution.

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Definitions:

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the actual level of activity.

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.

Relevant Information

Data that can influence a decision-making process because it is pertinent and has a bearing on the situation.