As CEO of OceanSideMarine, BarbJackson 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 OceanSideMarine 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 Myles Calaway reports that the team and IDG estimate that if

OceanSideMarine implements the ERP system, it will incur the following costs:

Costs of the Project

a. $370,000 in software costs

b.$97,000 to customize the ERP software and load OceanSide's data into the new ERP systemc.

$145,000 for employee training

Benefits of the Project

a.	More efficient order processing should lead to savings of $190,000.
b.	Streamlining the manufacturing process so that it maps into the ERP system will create savings of $220,000.
c.	Integrating purchasing, production, marketing, and distribution into a single system will allow OceanSideMarine to reduce inventories, saving $225,000.
d.	Higher customer satisfaction should increase sales, which, in turn, should increase profits by $170,000.

Requirement 3. Why did

Jackson

create a team to evaluate IDG's proposal?

BarbJackson

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 different knowledge and information to contribute.

B.

Forming a team would lower the cost of evaluating the system.

C.

The project was probably too big for one person.

D.

She did not want to have sole responsibility for the decision.

E.

The representatives of different functional business areas have the same knowledge and will offer similar perspectives.