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ACCA Applied Knowledge · Business and Technology · Technological factors

A manufacturer installs sensors and software that automatically reorder raw materials when stock falls to a preset level, with no manual intervention. Which benefit of technology in business processes does this most directly illustrate?

This illustrates automation of routine tasks. Software triggers purchase orders when stock hits a preset level without human involvement, which cuts administrative effort, speeds up the process and reduces errors. The other options relate to branding, supplier power or diversification, not process automation.

  1. AAutomation of routine tasks, reducing errors and administrative effortCorrect
  2. BDifferentiation of the product through unique branding
  3. CIncreased bargaining power of suppliers
  4. DDiversification into unrelated markets

Explanation

Automatic reordering replaces a manual, repetitive task with a system-driven process. This reduces clerical effort and the risk of human error. The other options describe strategic or competitive-force ideas unrelated to process automation.

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