US CMA Part 1 · Chapter 6 · Question 1 of 22
What is the defining characteristic of an enterprise resource planning (ERP) system?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It integrates business processes such as finance, purchasing, production and sales around a single shared database
Explanation
An ERP system links the main functional areas of a business through a common database, so data entered once is available across the organization. This reduces duplication and inconsistency, but ERP systems still require strong internal controls.
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