Which of the following is true about ERP systems?
A) Because ERP systems are software based, they have given way to a more service-based economy.
B) Because ERP systems track costs more efficiently, the benefit from the cost information outweighs the cost of obtaining the information.
C) Because ERP systems track costs more efficiently, process costing systems are becoming more prevalent.
D) Because ERP systems have the ability to trace all production costs to individual units, all product costs can now be classified as either direct materials or direct labor.

Question

Quizplus · Accepted Answer

ERP systems are designed to track costs more efficiently, providing valuable cost information for decision-making. The benefits of having accurate cost information outweigh the costs associated with implementing and maintaining the system. This has led to a greater adoption of ERP systems in many industries. However, this does not have a direct impact on the service-based economy (choice A), process costing systems (choice C), or the classification of product costs (choice D).

Which of the Following Is True About ERP Systems