What does Electronic Data Interchange (EDI) facilitate?

Electronic Data Interchange (EDI) is a technology that allows businesses to exchange documents and data in a standardized electronic format directly between their computer systems. This automation eliminates the need for manual processes and reduces errors associated with document handling.

Choice C is correct because EDI streamlines transactions by enabling various types of business documents, such as purchase orders, invoices, and shipping notices, to be exchanged seamlessly and efficiently. Using a standardized format ensures that the receiving computer can interpret the data correctly without human intervention, which enhances operational efficiency and speeds up business cycles.

The other options do not accurately represent the purpose or functionality of EDI. Handwritten formats and paper invoices are both manual processes that EDI aims to replace. Additionally, while a consumer's financial management might involve some electronic data, it does not capture the essence of EDI as it specifically pertains to B2B transactions and integrations. Thus, focusing on the direct computer-to-computer communication aspect emphasizes the transformative nature of EDI in modern business operations.