Which of the Following Is the Most Costly and Least

question 46

Multiple Choice

Which of the following is the most costly and least risky method of converting from one system to another?

• A) direct
• B) parallel
• C) pilot
• D) phase-in

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Definitions:

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Electrical Cost

Electrical cost refers to the expenses incurred from the use of electricity, often a significant component of utility costs for homes and businesses.

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.