In a Parallel Conversion Strategy, the New System

question 81

Multiple Choice

In a parallel conversion strategy, the new system:

• A) is tested by an outsourced company.
• B) replaces the old one at an appointed time.
• C) and the old are run together.
• D) is introduced in stages.
• E) is run in at least two separate divisions in order to compare results.

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Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period.

Market Rate

The interest rate available in the marketplace for similar transactions.