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Which of the following best captures the distinction the chapter draws between ERP and a basic accounting package?
AERP runs only on the cloud and an accounting package runs only on-premise
BERP only stores transactions; an accounting package generates statements
CERP is reserved for listed companies; private companies must use simple accounting packages
DERP uses a single defined data schema with a common database that connects procurement, projects, accounting, risk, compliance and supply chain, eliminating data duplication and enforcing data integrity across the enterprise
Answer & Solution
Correct answer: D. ERP uses a single defined data schema with a common database that connects procurement, projects, accounting, risk, compliance and supply chain, eliminating data duplication and enforcing data integrity across the enterprise
The chapter defines ERP by its single defined data structure, shared transactional data across multiple sources, elimination of duplication and data integrity from a single source of authentication — connecting many business processes, not just accounting. Hosting model and listing status are not the distinguishing features.
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