Companies that use ERP systems, and other such budgeting tools, find that these systems simplify budgeting and
reduce the computational burden and time required to prepare budgets. The Concepts in Action box on page 198 provides an example of one such company. ERP systems store vast quantities of information about the materials, machines and equipment, labor, power, maintenance, and setups needed to manufacture different products. Once sales
quantities for different products have been identified, the software can quickly compute the budgeted costs for manufacturing these products.