The Task of Improving the Efficiency of Crawford Insurance's Accounting

question 23

Multiple Choice

The task of improving the efficiency of Crawford Insurance's accounting information system was given to a project development team.During the ________ step in the systems development life cycle,the team determined that implementing a new system will yield an internal rate of return of approximately 16.0%.

• A)systems analysis
• B)operations and maintenance
• C)implementation and conversion
• D)conceptual design

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased, indicating cost management efficiency.

Purchasing Department

The division of a business responsible for acquiring goods, services, and materials necessary for the company’s operations.

Labour Rate Variance

The difference between the actual cost of labor per hour and the standard cost of labor per hour, multiplied by the number of hours worked.

Actual Hours (AH)

The real time spent on a task or project, as opposed to planned or estimated hours.