The Drawbacks of ERP Systems Include All of the Following

question 12

Multiple Choice

The drawbacks of ERP systems include all of the following except:

• A) They are complex
• B) They are expensive
• C) They are time-consuming to implement
• D) Companies may need to change existing business processes to fit the software
• E) They consist of modules

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Definitions:

Net Operating Income

Income from a company's operations, excluding taxes and interest, reflecting the profitability of the core business activities.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, labor, and allocated overhead.

Unit Product Cost

The total cost to produce one unit of a product, comprising both direct costs like materials and labor, and allocated indirect costs.

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.