Which statement is true regarding core ERP applications?

Core ERP applications play a fundamental role in supporting day-to-day business activities across various functions within an organization. These applications are designed to integrate essential business processes, such as finance, inventory management, human resources, and supply chain management, facilitating efficient operations and information flow. By providing a centralized framework for managing core business functions, they help organizations operate more effectively and respond quickly to changing business conditions.

In contrast, auxiliary applications tend to be supplementary and provide support for specific needs but are not as critical as core functions. The claim that core ERP systems are only for financial reporting is inaccurate because they encompass a much broader range of business processes, not just financial management. Similarly, stating that they are designed for limited operational scope undermines their purpose, as they are meant to encompass a wide array of functions in an organization to provide comprehensive support for operational and strategic decisions.