Materials Costs in System Application Development Projects Primarily Consist of

question 116

Multiple Choice

Materials costs in system application development projects primarily consist of

• A) computer use charges for program development and testing.
• B) wages and salaries paid to project team members.
• C) supplies used by the project team during the course of the project.
• D) pro-rated amounts for temporary office space used by the project team.

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Definitions:

Accounting Period

A specific period of time used for financial reporting and analysis, often a quarter or a year.

Estimates

Approximations used in accounting when precise data is unavailable, often used for calculating allowances for doubtful accounts or depreciation.

Actual Overhead Cost

The real expenses incurred for overhead, including costs associated with running the business that are not directly tied to a specific product or service.

Overhead Applied

The process of assigning a portion of fixed and variable overhead costs to individual units of production.