What Type of Conversion Changes the Old System to a New

question 26

Multiple Choice

What type of conversion changes the old system to a new one by gradually replacing elements of the old with the new until the old system has been entirely replaced?

• A)Direct conversion.
• B)Parallel conversion.
• C)Phase-in conversion.
• D)Pilot conversion.

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Definitions:

Direct Labor Rate

The cost per hour for direct labor applied to the production of goods or services.

Direct Labor-Hours

The sum of hours spent by workers directly engaged in producing a good or delivering a service.

Schedule of Expected Cash Collections

A financial report that outlines the anticipated inflow of cash from receivables or other income sources over a specific time period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a retail company needs to purchase over a specific period to meet expected sales.