Identify One Major Drawback That Is Frequently Associated with Canned

question 20

Multiple Choice

Identify one major drawback that is frequently associated with canned software.

• A)A commercial software development company develops it.
• B)Canned software is sold on the open market to a broad range of users with similar requirements.
• C)Canned software may not meet all of a company's information or data processing needs.
• D)Canned software may offer easy availability and lower costs.

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Definitions:

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.

Activity-Based Costing

An accounting method that assigns costs to products based on the activities involved in producing those products.

Decision

The process of making choices among alternative courses of action.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future business decisions.