A Mainframe Computer Is Designed to Meet the Computing Needs

question 62

True/False

A mainframe computer is designed to meet the computing needs of hundreds of people in a large business environment. Mainframe computers are a step up in size, power, capability, and cost from minicomputers.

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Definitions:

Inventoriable Costs

Direct costs associated with the acquisition or production of goods that are capitalized as inventory and recognized as cost of goods sold when the inventory is sold.

Matching Principle

A fundamental accounting concept that requires expenses to be recorded in the same period as the revenues they helped generate.

Percentage-of-Completion

An accounting method that recognizes revenue and expenses of long-term projects as a percentage of work completed during the period.

Product Costs

Costs directly associated with the production of goods, including materials, labor, and overhead expenses.