Backward Compatibility Is an Important Consideration for Software Users Who

question 19

Multiple Choice

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in_____________ .

• A) coercive change
• B) dominant design manipulation
• C) generational change
• D) intuitive change
• E) incremental modification

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold or used.

Process Costing

A costing method used in industries where production is continuous, allocating costs to products based on the process they go through.

Assembly Department

A segment of a manufacturing process where components are put together to assemble a final product.

Process Costing

An accounting methodology used for homogenous products, where costs are accumulated to produce an average cost per unit across the entire production process.