Nobody downloaded yet

Costs and Benefits Associated with ERP Systems - Advanced Accounting Information systems - Essay Example

Comments (0) Cite this document
Summary
Enterprise Resource Planning is a business process management software that permits an organization to use a system of integrated application that aids business administration and automate many functions related to the business like procurement, human resource etc.
The reasons…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Costs and Benefits Associated with ERP Systems - Advanced Accounting Information systems
Read TextPreview

Extract of sample "Costs and Benefits Associated with ERP Systems - Advanced Accounting Information systems"

Download file to see previous pages P.Regardless of the reason that has contributed to need of searching a new ERP, the fundamental question to be kept in mind is how the ERP will cost (Busco et al., 2007).
The cost of an ERP varies depending on different factors. These factors include the size of the company; type of solution needed for instance the more specialized the solution is the pricier the ERP will be. The needed resources also contributes to the decision to be made regarding the ERP.The more external resources are the more costlier the ERP is.The level of customization is also an a factor determining the cost of an ERP (Nixon, 2012).
There is the purchase cost and the licensing cost. When an ERP is purchased, licenses for the Database Management System need to be bought separately. Often, the licenses are excluded in purchase price of the software since it is distinct product developed by a different company. There are two types of users’ license in the ERP; the named user and parallel operator. Respective worker has to require an authorization to be able to use the software in the named user licensing. In a parallel user licensing, there has to be a password available to each connected user (Li, 2011).
There are also infrastructure related costs. The infrastructure cost incorporates all the required hardware to ride the ERP. However, this will fluctuate for each company, but the following should be included irrespective of the company. Firstly, there is server infrastructure cost, the cost of storage, the cost of backups and new desktop computers, or the computers that require upgrading. The infrastructure costs are responsible for about ten to twenty of an ERP implementation project (Li, 2011).
There are also human resources. Human resources accounts for the greatest ERP implementation budget. Consultant costs and the employees’ wages consume more than fifty percent of the total ERP cost. Internal resources cost is also a cost related to ERP. The wages of employees should cater ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Costs and Benefits Associated with ERP Systems - Advanced Accounting Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1686773-costs-and-benefits-associated-with-erp-systems-advanced-accounting-information-systems
(Costs and Benefits Associated With ERP Systems - Advanced Accounting Essay)
https://studentshare.org/finance-accounting/1686773-costs-and-benefits-associated-with-erp-systems-advanced-accounting-information-systems.
“Costs and Benefits Associated With ERP Systems - Advanced Accounting Essay”, n.d. https://studentshare.org/finance-accounting/1686773-costs-and-benefits-associated-with-erp-systems-advanced-accounting-information-systems.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Costs and Benefits Associated with ERP Systems - Advanced Accounting Information systems

Accounting Information Systems

...possibility that the company could be exposed to computer fraud and abuse in many ways (Sori, 2009, p.36). There are some general types of threat related to accounting information systems of the company. Terrorist attack and natural deserter in New Zealand and other operating countries are considered as macroeconomic threats to the company’s information systems. Other micro environmental threats are malfunction of hardwires software errors, human unintentional manual errors, and lastly the most dangerous intentional acts or computer crimes. Now fraud refers to intentional unethical and unfair business practice by organizations or individual or groups....
10 Pages(2500 words)Assignment

Advanced Information Systems Management

...a customer requests for data on taxation, salaries or benefits, the government owned organizations are mandated to provide it immediately. Nonetheless, the efficiency of data mining and presentation data to the client or customer depends on the level of expertise, skills and knowledge that a government employee has (Stjepanovic, 2010, p. 276). The skills that are required include the use of various software applications within the CRM system such as Microsoft Word Excel and database management applications. Shanks, Jagielska and Jayaganesh (2009, p. 264) point out that CRM is valuable to a government organization because it reduces the costs that are associated with...
7 Pages(1750 words)Essay

Ikea-ERP Management Information Systems

...IKEA-ERP Management information systems implementation As one of the most crucial technological development in business, Enterprise Resource Planning (ERP) has led to incredible efficiencies and advantages in the operations of businesses (Valiukonytė & Zakarauskienė, 2009)). IKEA is a business group based in Dubai, Europe, North America and Asia. The company is so capacious that it deals with 12000 and above products. IKEA has a large number of workers and operation the company without the use of modern technology is impossible. For the normal functioning of the company, the company has adopted ERP. IKEA leads in the world as a furniture retailer dealing...
3 Pages(750 words)Essay

ERP Systems

...flexibility, and centralise information among others (Hallikainen 3). The software infrastructure also presents an opportunity for the business to sustain a competitive advantage in the evolving world of information technology in business. This is achieved by ensuring cooperation and integration of various departments in an organisation and is in line with information technology, a key aspect in relation to effective management (Bernroider and Koch). There are various applications offered by ERP system depending on the needs of the organisation, which include supply-chain management, human resource management, customer relationship manager and...
4 Pages(1000 words)Essay

Accounting Information Systems

...quick resolution. The usual benefits acquired from the use of strategic M/AIS indicated by Brynjolfsson and Hitt (2004) are as follows. Cost reduction. Improving operational performance with new technologies, like inventory management and supply chain integration system, will allow reducing financial expenditures, which were previously thought as inevitable for business running. For instance, the successful combination of information systems and supplier management practices will eventually lead to inventory reductions. Faster introduction of new products and services. System innovations may not necessarily lead to the creation of...
4 Pages(1000 words)Essay

Accounting information systems development

...Accounting Information Systems Development Background The company in this scenario is a small, local CPA firm. The personnel at the organization include three new CPAs and an office manager. Primarily, the company's business consists of tax and write-up work. However, recently the company has required a new client: a homeowner's association with a total of 150 homeowners. The firm has agreed to provide the homeowner's association with several services. Service Areas There are six service areas that the company has agreed to service the homeowner's association with: billing, collection, payments, reporting, tax, and advisory. With...
6 Pages(1500 words)Essay

Business-accounting information systems

...and the overall financial results of an enterprise. Great Plains is a great business solution, but it is quite expensive. Microsoft Great Plains costs $50,000 - $250,000 depending on the overall package the company purchases (2020software, 2007). Peachtree Accounting is an accounting software solution developed by Sage Software. Peachtree comes in four different versions depending on the sophistication of the user. The four versions are basic, standard, advance and premium. The prices go from $70 for the basic up to $500 for the premium version (Peachtree, 2007). A user can upgrade between versions at any time for a fraction of the overall cost. The...
6 Pages(1500 words)Essay

Accounting information systems

...ACCOUNTING INFORMATION SYSTEMS Problems: 5 Instruction: ify each of the five situations as a fraudulent act, an indicator of fraud, or an event unrelated to the investigation. Justify your answers. An experienced senior auditor was assigned to investigate a possible freaudulent situqtion characterized by extremely high, unexplained merchandise shortages at one location of the companys department store chain. During the course of the investigation, the auditor determined the following: 1. The supervisor of the receiving department was the owner and operator of a small boutique carrying many of the same labels as he chain store. The chain stores general manager was unaware of the...
5 Pages(1250 words)Coursework

ACCOUNTING INFORMATION SYSTEMS

...to the company’s database. The use of QuickBooks establishes a proper way of controlling the cash, and this ensures no fraudulent action happens in the company as there are individuals who are accountable for every receipt. However, the owner admitted again that she is not on top as far as keeping track and keeping a list of the inventories. Most of the time, she use the check to pay the cost of goods sold to the credit card company without checking the book records, portrays poor record keeping and the company may end up paying more than what is required hence lowering the profits accrued. According to the owner, the network used in the company is more secure because not everyone can access the network....
2 Pages(500 words)Essay

Knowledge Worker Information Systems

...is not only a door to business success, but also a vital element of survival. An advanced ERP system is vital to companies that face problems of real time running of reports , waste age of time through re-entering the similar data in multiple systems, or where major business metrics are done by hand on normal spreadsheets. Despite the listed benefits, however, the systems extract an enormous cost. Implementation demands considerable time commitments from either outside professionals or the information technology department in the company. A research for instance carried out showed that only 5% of...
11 Pages(2750 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Costs and Benefits Associated with ERP Systems - Advanced Accounting Information systems for FREE!

Contact Us