ERP systems store vast quantities of information about the materials, machines and equipment, labor, power, maintenance, and setups needed to manufacture different products. This helps simplify the budgeting process as ERP systems ________.
A) can quickly calculate the manufacturing and nonmanufacturing costs based on a given sales quantity
B) automatically identify and record changes in processes involved in producing products
C) identify which underlying assumptions are likely to change
D) always use a rolling budget ensuring that a budget is always available for a specified future period

Question

Quizplus · Accepted Answer

ERP systems can use the stored information to quickly calculate the manufacturing and nonmanufacturing costs based on a given sales quantity, which streamlines the budgeting process. Therefore, Choice A is the correct answer. Option B is incorrect because while ERP systems can record changes in processes, it is not directly related to simplifying the budgeting process. Option C is not entirely accurate as ERP systems do not specifically identify which assumptions are likely to change. Option D is also incorrect because not all ERP systems use rolling budgets.

ERP Systems Store Vast Quantities of Information About the Materials