Which of the Following Statements Regarding CMM Scaling Is TRUE

question 46

Multiple Choice

Which of the following statements regarding CMM scaling is TRUE?

• A) DBS VMs can scale out in steps of a single VM.
• B) NECC VMs can scale out in steps of a single VM.
• C) CPPS VMs can scale out in steps of a single VM.
• D) IPDS VMs can scale out in steps of a single VM.

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Definitions:

Reversing Temporary Difference

An accounting adjustment that reverses differences between tax and financial reporting over time.

Originating Temporary Difference

A difference that arises in a particular period between the book income and taxable income, which is expected to reverse in the future.

Municipal Bonds

Debt securities issued by municipalities or local governments to finance public projects, typically offering tax-exempt interest payments to investors.

Permanent Difference

Refers to the discrepancy between book income and tax income that arises from certain items being recognized in either financial accounting or tax accounting, but not in both, leading to a difference that does not reverse over time.