An Outside Supplier That Provides Both the Computers and the Application

question 12

Multiple Choice

An outside supplier that provides both the computers and the application support for managing an information system is referred to as (an) ____________________________.

• A) cloud computing
• B) offshore provider
• C) application service provider
• D) enterprise IT manager

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Definitions:

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the costs needed to convert raw materials into finished goods.

Direct Materials

These are the raw materials that are directly incorporated into a finished product.

Prime Cost

The combined direct costs of raw material and labor that are directly associated with the production of a product.

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.