IPA IP 2020 Question 27

A question IPA Japan published in 令和2年度 10月 ITパスポート試験 公開問題 問27, translated into English. ITPEC is based on the same exams.

Which of the following is a mechanism that unifies the formats of business transaction information and the communication procedures between companies, and exchanges information electronically?

Explanation

EDI — Electronic Data Interchange, the exchange of business transaction data between companies by computer, under agreed formats and communication procedures.

The trading partners agree on the format of each business document (purchase order, delivery note, invoice), the communication protocol and the operating rules. The buyer's system then sends an order that the supplier's system can read and process directly, with no paper, fax or re-keying, which cuts input errors, cost and lead time. Industry-wide standards let one company trade with many partners in the same way.

Answer (a)

Why not others:

  • •(b) EIP — enterprise information portal, a single web entry point through which employees reach the information and applications inside their own company
  • •(c) ERP — enterprise resource planning, integrated management of one company's resources (people, goods, money, information) across its departments; it is not about exchange between companies
  • •(d) ETC — electronic toll collection, paying road tolls automatically by radio between a vehicle's on-board unit and the toll gate

Key rule: EDI standardizes the electronic exchange of transaction documents between companies; ERP integrates resources within one company, and EIP is a company's internal portal.

Business Industry · AI-written, may contain errors

This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.