Case-Based Critical Thinking Questions

question 42

Multiple Choice

Case-Based Critical Thinking Questions
Case OFF 1
Paul has taken over his father's business of running a gas station.Paul's father used spiral notebooks to record all customer-related information.Paul decides he cannot work using this method and purchases a new computer system for the gas station.He also purchases a copy of Microsoft Office Professional 2010 for all of his software needs.
-Paul's first goal is to record the names,addresses,phone numbers,and e-mail addresses of each customer.He wants this information in a program where he can take all of a customer's information and create an invoice form.Paul chooses ____ for this job.

• A) Outlook
• B) Access
• C) Excel
• D) Word

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Definitions:

Administrative Expenses

Administrative Expenses are overhead costs not directly tied to a specific function such as manufacturing, production, or sales, and can include salaries, rent, and office supplies.

Budgeting

A financial planning process whereby individuals or entities estimate their expected incomes and expenditures over a defined period.

Activity Variance

Activity variance calculates the difference between the planned quantity of activity and the actual quantity, analyzing the impact on costs and operational efficiency.

Direct Labor

The wages and benefits paid for the labor directly involved in the production of goods or services.