Future Market,a supermarket chain,uses bar codes for all its products.As soon as a product is sold,the information is electronically transferred to the firm's warehouse and the product's supplier.In addition,changes are automatically made to the firm's sales account and stock ledger.This helps the firm reduce its paperwork and makes managing inventory easier.This is an example of _____.
A)activity-based costing (ABC)
B)electronic data interchange (EDI)
C)an automated assembly line
D)a just-in-time inventory system

Question

Future Market,a supermarket chain,uses bar codes for all its products.As soon as a product is sold,the information is electronically transferred to the firm's warehouse and the product's supplier.In addition,changes are automatically made to the firm's sales account and stock ledger.This helps the firm reduce its paperwork and makes managing inventory easier.This is an example of _____.​
A)activity-based costing (ABC)
B)​electronic data interchange (EDI)
C)​an automated assembly line
D)a just-in-time inventory system

Quizplus · Accepted Answer

This scenario describes the use of electronic data interchange (EDI) to transfer information between Future Market, its warehouse, and its suppliers. EDI is a computer-to-computer exchange of business documents in a standard electronic format, which helps to automate processes and reduce paperwork. This is not an example of activity-based costing, an automated assembly line, or a just-in-time inventory system.

Future Market,a Supermarket Chain,uses Bar Codes for All Its Products