Middle Range Accounting Software Programs Can Cost as Much as $100,000

question 14

True/False

Middle range accounting software programs can cost as much as $100,000 when you include the costs of customizing the software for a particular organization.

---

Definitions:

Equivalent Unit

A measure used in process costing that converts the work done on partial units into a number of fully completed units.

Process Costing

A costing method used in manufacturing where costs are assigned to products based on the average cost of production steps or processes.

Conversion Costs

The aggregate cost of direct labor and the overheads in manufacturing necessary for turning raw materials into final goods.

Cutting Department

A section within a manufacturing facility where materials are cut to size or shape before proceeding to further stages of production.