Which of the Following Is Not an Advantage of Using

question 158

Multiple Choice

Which of the following is not an advantage of using purchased or "canned" software packages?

• A) They are less expensive.
• B) They seldom meet all of a company's needs precisely.
• C) They are already debugged.
• D) The company can "test drive" the product before making a substantial investment.

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Total Variable Cost

The sum of all variable costs associated with the production of a given level of output.

Total Fixed Cost

The sum of all costs required to produce any product or service that does not change with the level of output.

Average Fixed Costs

Average fixed costs are the total fixed costs of production divided by the quantity of output produced, which decreases as production increases.