Which of the following statements is true of electronic data interchange (EDI)?
A) It uses proprietary protocols and networks.
B) It is more beneficial when there are more companies in its network.
C) When Web-based EDI is used, the process of sales forecasting is disrupted.
D) When it uses the Internet and Web protocols, the cost of transmitting documents increases.

Question

Quizplus · Accepted Answer

EDI becomes more efficient when more companies and trading partners are connected to the network, as it enables faster and more automated transfer of business documents between them. Proprietary protocols and networks are not a necessary feature of EDI, and the use of Web-based EDI does not typically disrupt sales forecasting. Using the Internet and Web protocols can actually decrease the cost of transmitting EDI documents.

Which of the Following Statements Is True of Electronic Data