The Purchase of a New 'Off the Shelf' Program Reduces

question 47

Multiple Choice

The purchase of a new 'off the shelf' program reduces the risks as;

• A)There is an ease in adapting the software for the companies reporting needs.
• B)The business will adjust to meet the new software needs.
• C)The software has been tested before being made available for sale.
• D)There is no risk of date being lost in transition to the new system.

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Definitions:

Flexible Budget

A budget that shows the expected results of a responsibility center for several activity levels.

Static Budgets

Financial plans that remain unchanged over the budget period, irrespective of any variations in activity levels.

Master Budgeting

A comprehensive financial planning document that includes all of an organization's budgets for a specific period.

Budget Preparation

The process of creating a plan that estimates the revenue and expenses for a future period.