A Small Business Is Engaged with a Cloud Provider to Migrate

question 23

Multiple Choice

A small business is engaged with a cloud provider to migrate from on-premises CRM software. The contract includes fixed costs associated with the product. Which of the following variable costs must be considered?

• A) Time to market
• B) Operating expenditure fees
• C) BYOL costs
• D) Human capital

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Definitions:

Annual Depreciation

The gradual reduction in the recorded value of a fixed asset, representing its wear and tear, obsolescence, or other declines in value over time.

Book Value

The net value of a company's assets, as recorded on the balance sheet, minus its liabilities and intangible assets.

Financial Statements

Documents that present the financial activities and conditions of a business or entity, including the balance sheet, income statement, and cash flow statement.

Basic Assumptions

Fundamental accounting principles that underpin the preparation and presentation of financial statements.