When Canned Software Is Used for Systems Acquisition,the Maintenance Aspect

question 59

Multiple Choice

When canned software is used for systems acquisition,the maintenance aspect of the operations and maintenance phase of the SDLC

• A) is more costly.
• B) is not necessary and is eliminated.
• C) is usually the responsibility of the vendor.
• D) requires trained personnel.

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Cost Of Goods Sold

The expenses directly related to the manufacturing of products a company sells, encompassing both materials and labor costs.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, used to control and manage costs.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard hourly labor rate.