Question

Which of the following is true about EDI? Select all that apply.

A) The EDI documents generally contain the same information found in paper documents.
B) The EDI documents are more likely than paper documents to contain errors.
C) The speed in which the EDI documents are exchanged is much faster than that of paper documents.

Answer 1

EDI documents contain the same information as paper documents and are exchanged much more quickly, thus A and C are true. EDI can also reduce the likelihood of errors encountered with paper documents, making B generally false.

Step-by-step explanation:

You asked which statements are true about EDI, or Electronic Data Interchange. Here are the facts:

A) The EDI documents generally contain the same information found in paper documents. This is true. EDI is a way to exchange business documents in a standardized electronic format. These documents often mirror traditional paper documents like invoices and purchase orders.

B) The EDI documents are more likely than paper documents to contain errors. This is typically false. One of the main advantages of EDI is that it reduces human intervention and thus, the potential for human error, making EDI transactions more accurate than manual paper processes.

C) The speed in which the EDI documents are exchanged is much faster than that of paper documents. This is absolutely true. EDI allows for near-instantaneous transmission of business information, which greatly increases efficiency compared to the slow process of mailing or faxing paper documents.