Case 2 You Have Been Hired to Create an Information

question 64

Multiple Choice

Case 2 You have been hired to create an information system for the TeaTime Tea House. You have met with the company owners to get a general idea of what they need. The owner requests a document describing the objectives for the new information system. What will you give him?

• A) A design
• B) An executive report
• C) A system requirements report
• D) A system development report

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other expenses.

Markup

The amount added to the cost of goods to cover overhead and profit, usually expressed as a percentage of the cost.

Discontinued Inventory

Discontinued inventory includes products that are no longer being produced or sold by a company, often due to obsolescence or strategy shifts.

Gross Profit Margin

A profitability metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency in producing goods.