A Company Will Be Moving from an On-Premises Data Center

question 372

Multiple Choice

A company will be moving from an on-premises data center to the AWS Cloud. What would be one financial difference after the move?

• A) Moving from variable operational expense (opex) to upfront capital expense (capex).
• B) Moving from upfront capital expense (capex) to variable capital expense (capex).
• C) Moving from upfront capital expense (capex) to variable operational expense (opex).
• D) Elimination of upfront capital expense (capex) and elimination of variable operational expense (opex)

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Definitions:

Direct Labor

Labor costs that are directly attributed to the work on specific goods or services, easily traced to individual units of production.

Manufacturing Overhead

These are indirect costs associated with manufacturing, not directly attributable to a specific product, such as factory rent, utilities, and maintenance.

Direct Materials

The raw materials used in the manufacturing process of a product that are directly incorporated into the final product.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the production process, awaiting use in manufacturing.