Although Gillette Uses Canned Software in Its Business Operations,it Does

question 56

Multiple Choice

Although Gillette uses canned software in its business operations,it does so with the intention of creating a competitive advantage.Identify how Gillette aims to gain a greater competitive advantage from using canned software.

• A)From deciding how the software should be used.
• B)From deciding what software should be used.
• C)From the cost savings it gains by using canned software.
• D)From deciding when software should be used.

---

Definitions:

Sequential Method

An approach to cost allocation in which support department costs are allocated to other support and operating departments sequentially, one after another, based on a predetermined order.

Reciprocal Services

Services exchanged between departments within an organization, used in cost accounting to allocate service department costs to producing departments.

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.

ABC

An abbreviation for Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.