Within the Context of Accounting Packages for Small Businesses, the Term

question 23

Multiple Choice

Within the context of accounting packages for small businesses, the term "scalability" refers to:

• A)The weight of the package
• B)The ability of the system to grow with a business
• C)The ability to measure the benefits of the system in monetary terms
• D)none of these

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Theory of Constraints

A management approach that focuses on identifying and managing the most limiting factor (constraint) that stands in the way of achieving a goal.

Goldratt and Cox

Eliyahu M. Goldratt and Jeff Cox, co-authors of "The Goal," a book introducing the Theory of Constraints, a methodology for improving organizational performance.