The Process of Building New Systems by Combining Packaged Software

question 53

Multiple Choice

The process of building new systems by combining packaged software, existing legacy systems, and new software written to integrate everything together is called _____.

• A) customization
• B) formal methodology
• C) outsourcing
• D) systems integration
• E) workaround

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Definitions:

Normal Return

The minimum profit necessary for a company to remain competitive in the market, often covering the cost of capital.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and loan payments.

Variable Costs

Costs that change in relation to the level of goods or services produced, such as materials and labor, in contrast to fixed costs.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.