Explain the Main Advantage and Disadvantage of a Centralized Processing

question 31

Essay

Explain the main advantage and disadvantage of a centralized processing system.

---

Definitions:

Fixed Cost

Expenses that do not change with the level of output or sales, remaining constant even if the business activity varies.

Activity Variance

The difference between what was expected in terms of expenses or revenues for a particular activity level and what was actually realized.

Vehicle Operating Cost

The total expense associated with keeping a vehicle running, including fuel, maintenance, insurance, and depreciation.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular expense category in a specific period.