ITPEC FE Morning October 2019 Question 74

Exchanging business transaction data between computers over a network using standard protocols — that is EDI.

EDI (Electronic Data Interchange) replaces paper business documents such as estimates, orders, delivery notes and invoices with data sent directly from one company's computer to another's. Because both sides follow agreed standards (communication protocol, message format, business rules), the data can be processed automatically without re-entry.

Answer (d)

Why not others:

• •(a) — a communication service that adds value such as storing transmitted data and converting its format is a VAN (value-added network), which EDI may run over
• •(b) — an international e-mail standard based on the OSI model for creating, sending and processing messages is MHS (message handling system, X.400)
• •(c) — placing orders by sending order data from a data entry terminal to the head office or a supplier is EOS (electronic ordering system)

Key rule: EDI is defined by standardized business data exchanged computer to computer between companies; the network that carries it (VAN, Internet) is a separate thing.

Business Industry · AI-written, may contain errors