Consider the Following as You Answer the Question: Jon Is

question 4

Multiple Choice

Consider the following as you answer the question: Jon is an information systems consultant with a diverse client base.Some of his clients recently posed the questions listed below; Jon is considering which type of flowchart would best be used to answer each question.
i.What happens to a federal tax return once it is received by the IRS?
ii.How should a company calculate payroll withholding taxes?
iii.What kind of computer network is in place at a local IRS office?
iv.What process does an organization employ to determine how to invest money in a pension fund?
v.What steps must be completed to write and publish an accounting textbook?
Which of the preceding questions would best be answered by the type of flowchart indicated below?

• A)I and II, document flowchart
• B)II and IV, systems flowchart
• C)I and II, systems flowchart
• D)II and IV, document flowchart

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Definitions:

High-Low Method

An accounting method used to estimate the fixed and variable components of a cost based on the highest and lowest levels of activity.

Variable Maintenance Cost

Costs that change in proportion to the operational activity of a company, such as repairs and maintenance expenses that vary with usage.

Mixed Cost

A cost containing both variable and fixed cost elements, changing in total with activity level but not proportionately.

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.