What Is an Open System

question 151

Multiple Choice

What is an open system?

• A) Any proprietary software licensed under exclusive legal right of the copyright holder.
• B) Any software whose source code is made available free for any third party to review and modify.
• C) Contains instructions written by a programmer specifying the actions to be performed by computer software.
• D) Nonproprietary hardware and software based on publicly known standards that allow third parties to create add-on products to plug into or interoperate.

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Definitions:

Variable Costing

An economic recording tactic that involves only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in determining product costs.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a particular period, providing insights into its financial performance.

Absorption Costing

A product costing method in accounting that adds up all manufacturing expenses, including direct materials, direct labor, and both kinds of overheads (variable and fixed), to derive a product’s cost.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead.