A Conversion Strategy Whereby the New System Is First Implemented

question 37

Multiple Choice

A conversion strategy whereby the new system is first implemented in only part of the organization to solve any problems before implemented in the rest of the organization is called a:

• A) pilot strategy.
• B) phased strategy.
• C) cutover strategy.
• D) parallel strategy.

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position and operating results of a parent company and its subsidiaries.

Intangible Assets

Non-physical assets owned by a business that can produce future economic benefits, such as intellectual property, goodwill, and licenses.

Expected Useful Life

It refers to the estimated duration a fixed asset is expected to be economically useful to the owner, beyond which it is considered to depreciate.

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the reduction of debt through regular payments of principal and interest over a set period.