Which of the Following Is True of the Comparison Between

question 127

Multiple Choice

Which of the following is true of the comparison between a manual and a computerized accounting information system?

• A)In both manual and computerized systems, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint.
• B)In a computerized system, the software can generate financial reports instantaneously that can never be manipulated.
• C)In a manual system, data are contained in paper documents that are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system, data are stored on a main computer called a server.
• D)In both manual and computerized systems, processing data includes manually journalizing transactions and posting to the accounts.

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Definitions:

Total Costs

The total expense of manufacturing that encompasses all constant and fluctuating costs.

Average Variable Cost

The cost of labor and materials divided by the quantity of output, representing the variable cost per unit of production.

Total Variable Cost

The sum of all costs that vary with output level, including costs such as labor and raw materials.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.