Author Question: Explain the benefits of an enterprise resource planning (ERP) application to multinational ... (Read 86 times)

joblessjake · **on:** Jul 7, 2018

Explain the benefits of an enterprise resource planning (ERP) application to multinational organizations.

What will be an ideal response?

Question 2

Consistency in a company's financial management system is maintained by ________.

A) supporting multiple finance-related activities and processes
B) creating bridges and interfaces to other information systems
C) generating exception reports regarding unusual financial events
D) creating compliance reports that conform to international regulations

missalyssa26 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

ERP brings huge benefits to multinational organizations. International ERP solutions are designed to work with multiple currencies, manage international transfers of goods in inventories, and work effectively with international supply chains. Even more important, ERP solutions provide a worldwide consolidation of financial statements on a timely basis. As a result, they can produce one set of financial reports, better analyze where costs could be saved, and identify where production can be optimized. While it is advantageous for these international firms to consolidate all their operations within one large ERP implementation, called a single instance, some firms maintain multiple instances, or an ERP for each country, business unit, or region. For these firms, the advantages of one set of data, a single financial system and worldwide process standards are outweighed by the cost of consolidating or the disparity among divisions.

Answer to Question 2

B