60.1K

Verified Solution

Link Copied!

As CEO of , knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When IDG Consulting proposes that invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant. A month later, management accountant reports that the team and IDG estimate that if implements the ERP system, it will incur the following costs: LOADING...(Click the icon to view 's anticipated project costs.) The team estimates that the ERP system should provide several benefits: LOADING...(Click the icon to view 's anticipated project benefits.) Requirements LOADING... Requirement 1. If the ERP installation succeeds, what is the dollar amount of the benefits? If the ERP installation succeeds, the dollar amount of the benefits is $ nothing. Requirement 2.Should install the ERP system? Why or why not? Show your calculations. Complete the table below to calculate the expected net benefits (costs) of the project. (Use parentheses or a minus sign for net costs.) Expected benefits Expected costs Net benefits (costs) Since the expected value of the benefits are greater than are less than the total costs, should should not undertake the project. Requirement 3. Why did create a team to evaluate IDG's proposal? formed a team to evaluate the feasibility of installing an ERP system for the following reasons. (Select all that apply.) A. The representatives of different functional business areas have the same knowledge and will offer similar perspectives. B. Forming a team would lower the cost of evaluating the system. C. She did not want to have sole responsibility for the decision. D. The representatives of different functional business areas have different knowledge and information to contribute. E. The project was probably too big for one person. Consider each piece of cost-benefit information that management accountant reported. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?) (Leave unused cells blank.) a. Estimating software costs Estimating software costs b. Estimating cost of loading data into the new ERP system Estimating cost of loading data into the new ERP system c. Customize the ERP software Customize the ERP software d. Estimate customization costs Estimate customization costs e. Estimate training costs Estimate training costs f. Savings from more efficient order processing Savings from more efficient order processing g. Savings from streamlining the manufacturing process Savings from streamlining the manufacturing process h. Evaluate the effects of integrating purchasing, production, marketing, and distribution into a single system Evaluate the effects of integrating purchasing, production, marketing, and distribution into a single system i. Estimate increase in sales from higher customer satisfaction Estimate increase in sales from higher customer satisfaction j. Estimate benefits and costs Estimate benefits and costs

Answer & Explanation Solved by verified expert

See Answer