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

question 3

Multiple Choice

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

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

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Definitions:

Factory Supervisor

An individual responsible for overseeing the daily operations, personnel, and production processes in a factory or manufacturing plant.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Administrative Expense

Overhead or general expenses related to the day-to-day operations of a business but not directly tied to a specific project or product.

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to the production of inventory.