Which of the following statements is true of electronic data interchange (EDI)?
A) It helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools.
B) It allows companies to exchange information by purposely providing outsiders with direct access to authorized parts of the company's intranet.
C) It works only if the data in different companies' computer, database, and network systems adheres to a particular set of standards for data structure and processing.
D) It requires human inputs to carry out the interactions between the different purchasing and ordering applications in companies.

Question

Quizplus · Accepted Answer

EDI requires a standard format for data exchange between different companies' computer systems. This format ensures that the electronic exchange of data is seamless and error-free. Without adherence to these standards, the systems will not be able to exchange data successfully. Options A and B refer to different aspects of management information systems and are not related to EDI. Option D is incorrect as EDI automates the exchange of data, and human interaction is not required.

Which of the Following Statements Is True of Electronic Data