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Although the Benefits of ERP Are Many, the Costs and Risks

question 96

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Although the benefits of ERP are many, the costs and risks can be considerable. Which of the following make up the bulk of the cost of implementing a new ERP system?


Definitions:

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the time resources are expected to be used in activities, improving accuracy and flexibility in allocating costs.

Order Fulfillment Department

The division within a company responsible for processing customer orders and ensuring they are delivered promptly and correctly.

Matching Capacity

A strategy to adjust the supply of a company's capacity to meet demand by scaling operations or workforce.

Impact on Expenses

The effect or influence that certain actions or events have on the costs incurred by a business.

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