ITPEC IP April 2023 Question 89

An integrated business system used by companies of various sizes in various industries — the correct description of an ERP package.

ERP (Enterprise Resource Planning) manages the whole company's resources — people, goods, money and information — in one integrated way. An ERP package is ready-made software for this: modules for accounting, sales, purchasing, inventory, production and human resources share one database, so a transaction entered once updates every related department. Packages are built around general business processes and configured for each company, which is why large and small companies across many industries use them.

Answer (c)

Why not others:

• •(a) — an ERP package is general-purpose, not restricted to certain sectors; software for the business unique to one industry is an industry-specific package
• •(b) — ERP is not limited to financial accounting; passing accounting data on to general accounting is exactly the integration ERP provides, not something developed or bought separately
• •(d) — integrating sales, purchasing and accounting is right, but ERP is not specialised for small, individually owned shops; it is used by companies of every size, large enterprises included

Key rule: ERP means company-wide integration on one shared database; it is not tied to one function, one industry or one company size.

Business Strategy Management · AI-written, may contain errors