One of the Problems with a Parallel Conversion Is

question 16

Multiple Choice

One of the problems with a parallel conversion is:

• A)there is a higher risk
• B)the old hardware might fail
• C)there is a lower risk
• D)the users have to enter data into both systems
• E)there is an abrupt conversion

---

Definitions:

Conversion Costs

Conversion costs are the costs incurred to convert raw materials into finished goods, and typically include direct labor and manufacturing overhead expenses.

Weighted-Average Method

A costing method for inventory that determines the cost of goods sold and the remaining inventory value by averaging the costs of all available units for sale throughout the period.

Equivalent Units

A concept in cost accounting that is used to allocate costs to the production process when there is more than one stage of production, converting work-in-process into complete units of output.

Direct Labor Costs

These are wages and benefits paid for the labor directly involved in the manufacturing of products.