With This Kind of Conversion, Only One Location in the Company

question 92

Multiple Choice

With this kind of conversion, only one location in the company uses a new system - so it can be tested. What is this kind of conversion?

• A) phased conversion
• B) direct conversion
• C) parallel conversion
• D) pilot conversion

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), calculated as gross income minus operating expenses.

Variable Cost

A variable cost varies directly with the level of production or sales volume, such as materials and labor costs.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from regular business operations.

Transfer Price

The price at which goods and services are sold between divisions within the same company or between a company and its subsidiary.