Why Does Pepsi Create Most of the Software It Uses

question 52

Multiple Choice

Why does Pepsi create most of the software it uses in business operations?

• A)Pepsi does not trust canned software.
• B)Using canned software actually cost Pepsi more than using custom software.
• C)Pepsi could not find canned software sophisticated enough to meet its needs.
• D)There is no canned software available in Pepsi's industry.

---

Definitions:

Accounting Period

A specific duration of time for which financial statements are prepared, often annually or quarterly.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was first utilized.

Artificial Time Periods

A concept in accounting referring to arbitrary time intervals chosen for the purpose of financial reporting, such as quarters or fiscal years.

Cash Basis Accounting

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.