Custom Software Is Expensive Both Initially and in the Long-Term

question 87

True/False

Custom software is expensive both initially and in the long-term because it is not guaranteed to work with newer versions of ERP software.

---

Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Designations for accounts or job positions that indicate if they are expected to last indefinitely or have a fixed duration, respectively.

Gross Method

An accounting method for recording purchases at the invoice amount without deducting any discounts offered.

Periodic Method

An inventory accounting system where updates to inventory accounts and cost of goods sold are made periodically at the end of a reporting period.