Which of the following statements is/are true w.r.t. Enterprise Resource…
2017
Which of the following statements is/are true w.r.t. Enterprise Resource Planning (ERP) ?
(A) ERP automates and integrates majority of business processes.
(B) ERP provides access to information in a Real Time Environment.
(C) ERP is inexpensive to implement.
- A.
(A), (B) and (C) are false.
- B.
(A) and (B) false; (C) true.
- C.
(A) and (B) true; (C) false.
- D.
(A) true ; (B) and (C) are false.
Attempted by 63 students.
Show answer & explanation
Correct answer: C
Answer: Statements (A) and (B) are true; statement (C) is false. The correct selection is the choice that states (A) and (B) are true and (C) is false.
Statement (A): ERP automates and integrates the majority of business processes.
Explanation: True — ERP systems provide integrated modules (for finance, HR, procurement, inventory, sales, etc.) that reduce duplication, automate workflows, and coordinate processes across the organization.
Statement (B): ERP provides access to information in a Real Time Environment.
Explanation: True — because ERPs use a single, centralized database and integrated transactions, they enable real-time or near-real-time reporting and operational visibility, supporting timely decision-making.
Statement (C): ERP is inexpensive to implement.
Explanation: False — ERP implementations are generally expensive and resource-intensive due to licensing, customization, integration, data migration, training, and ongoing support costs.
Implication: When evaluating ERP options, plan carefully for budget, timeline, and change management to realize the automation and real-time benefits.