ACC200 Ch2 Set 3

Question 1

Electronic data interchange

Answer 1

to communicate with it’s suppliers. Every year it processes over half a million invoices electronically, thereby eliminating paper documents & dramatically reducing costs & errors. This has resulted in higher profits & more accurate information. EDI is the electronic communication of transactions (orders, confirmations, & invoices) between organisations.

Question 2

Reports

Answer 2

are used by employees to control operational activities & by managers to make decisions as well as to formulate business strategies.

Question 3

Integrated enterprise resource planning system?

Answer 3

Integrated ERP database:
- Revenue cycle

• Expenditure cycle
• General ledger & reporting cycle
• Production cycle
• HRM cycle / payroll sub cycle

Question 4

Typical ERP module includes?

Answer 4

• financial (general ledger & reporting cycle
• human resources & payroll (HRM cycle/payroll subcycle)
• order to cash (revenue cycle)
• purchase to pay (expenditure cycle)
• manufacturing (production cycle)
• project management
• customer relationship management (CRM)
• system tools

Question 5

ERP advantages?

Answer 5

• an ERP provides an integrated, enterprise-wide, single view of the organisation’s data & financial situation. Storing all corporate data in a single database breaks down barriers between departments & streamlines flows of information.
• data input is captured or keyed once, rather than multiple times, as it is entered into different systems. Downloading data from one system to another is no longer needed

Question 6

ERP advantages?

Answer 6

• Management gains greater visibility into every area of an enterprise & greater monitoring capabilities. Employees are more productive & efficient because they can quickly gather data from both inside & outside their own department.
• An organisation gains better access control. An ERP can consolidate multiple permissions & security models into a single data access structure.

Question 7

ERP advantages

Answer 7

• Procedures & reports are standardised across business units. This standardisation can be especially valuable with mergers & acquisitions because an ERP system can replace different systems with a single, unified system.
• Customer service improves because employees can quickly access orders, check inventory, shipping information & past customer transaction details.

Question 8

ERP advantages

Answer 8

• Manufacturing plants receive new orders in real time, & automation of manufacturing processes leads to increased productivity.

Question 9

ERP disadvantages

Answer 9

• cost
• amount of time required
• changes to business processes
• complexity
• resistance