Which of the Following Statements Related to Implementation Approaches Is

question 78

Multiple Choice

Which of the following statements related to implementation approaches is true?

• A) The parallel system significantly decreases employee's work load during the conversion period.
• B) The parallel system terminates the operation of the old system and then compares the outputs of the two systems
• C) The modular approach can only be combined with the direct approach.
• D) The direct approach is the riskiest of the three approaches

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Definitions:

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs for utilities, rent, and maintenance, that are not directly tied to production.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base.

Machine-Hours

A measure of production time, representing the hours a machine is operated within a given period.

Direct Labor-Hours

A metric for quantifying the manual work done by employees on the production floor, correlating with the labor costs of manufacturing.