BelAir Tech Has a Five-Member Team in Charge of Development

question 92

Multiple Choice

BelAir Tech has a five-member team in charge of development and maintenance of its information systems.An information system is in place,and the team performs routine maintenance to keep it running smoothly.Which of the following scenarios is an example of adaptive maintenance?

• A) Jason notices a faulty component in the system and modifies the component.
• B) Justin works on the system to make the user interface more user-friendly.
• C) Sara knows that the company is migrating to a new operating environment next month,and makes the appropriate changes to the system.
• D) Dylan predicts that the company's old system may fail under new demands,and takes steps to avert this.
• E) Kiera detects a fault in the coding,which is hampering system performance,and rectifies it.

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

GAAP

Generally Accepted Accounting Principles, the standardized set of accounting rules, practices, and procedures used in preparing financial statements in the U.S.

Product Costing

Product costing involves determining all expenses related to the creation of a product, including materials, labor, and overhead, to establish its total cost.

Absorption Costing

In this accounting method, total costs of manufacturing, from direct materials and labor to both fixed and variable overheads, are completely absorbed into the product’s final cost.