CASE Scenario - Kandi Apple

question 122

Multiple Choice

CASE
Scenario - Kandi Apple
The continuing development and improvement of computer information systems has made a powerful impression on Kandi Apple, CEO of Merry-Go-Rounds (MGR) . The current computer system at MGR is seven years old, and while still highly useful and reliable, Kandi is wondering if a new system would be more efficient and more useful. Kandi recognized that some of her managers would prefer to keep the old system, while others have been requesting that the company update its information capability.
-To overcome the resistance to the new system, Kandi can use any of the following techniques, EXCEPT

• A) education and communication.
• B) participation in designing the system.
• C) negotiation.
• D) coercion.
• E) all of these can be used.

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Activity Level

A measure of the volume of production or operations, often used to plan and control various business activities.

Period Costs

Expenses that are not directly tied to the production of goods and are expensed in the period in which they are incurred.

Average Costs

The cost per unit calculated by dividing the total cost of production by the number of units produced.