When Considering Costs of a New System Conversion,which Is NOT

question 50

Multiple Choice

When considering costs of a new system conversion,which is NOT a common cost to consider?

• A)the cost of running two systems with a parallel conversion
• B)the costs of more staff at more locations for support in a simultaneous conversion
• C)the salary costs of users,trainers,administrators,consultants
• D)the hardware costs for a pilot system
• E)the extra programming costs for a modular conversion

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Definitions:

Accounts Receivable

Unpaid amounts from customers for goods or services that a business has already provided.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Depreciation Expense

The allocated amount of the cost of an asset, spread out over the time it is expected to be used, reflecting its consumption, wear and tear, or obsolescence.

Indirect Method

In cash flow calculation, this method adjusts net income for non-cash transactions and changes in working capital to arrive at net cash provided by operating activities.