ITPEC IP October 2018 Question 91
Which of the following describes EDI?
Explanation
Exchanging business transaction data between computers over a network under standard conventions — that is EDI (Electronic Data Interchange).
Companies send orders, delivery notes, invoices and payment data to each other electronically instead of on paper. Because both sides follow agreed conventions (communication protocol, message format, business rules), the receiving system can process the data directly without re-entering it.
Answer (c)
Why not others:
- •(a) — an OSI-based international standard for creating, transmitting and processing messages is MHS (Message Handling System, ITU-T X.400), an e-mail standard
- •(b) — a communication service that adds value such as storing data and converting formats is a VAN (Value Added Network); a VAN can carry EDI, but it is not EDI itself
- •(d) — sending order information from a data entry terminal to the head office or suppliers is EOS (Electronic Ordering System), used by retail stores for ordering only
Key rule: EDI is defined by standard conventions between companies' computers; VAN is a network service, EOS an ordering system, and MHS an e-mail standard.
Business Industry · AI-written, may contain errors
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