The Disadvantage of This Kind of Conversion Is That It

question 142

Multiple Choice

The disadvantage of this kind of conversion is that it is extremely risky and can disrupt operations seriously if the new system does not work correctly the first time. Which kind of conversion is this?

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

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Definitions:

Marginal Cost

The increase in total cost that arises from an extra unit of production, emphasizing the cost variability.

Total Cost

The sum of all costs associated with producing a certain quantity of goods or services, including both fixed and variable costs.

Computer Software

Programs and other operating information used by a computer to perform specific tasks.

Variable Cost

Costs that vary directly with the level of production or output in a company, such as raw materials and labor expenses.