Switching from the Use of a Present System to the Operation

question 43

Multiple Choice

Switching from the use of a present system to the operation of a new or improved system is a(n) _______________ activity.

• A) acquisition
• B) software development
• C) documentation
• D) conversion

---

Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes towards covering fixed costs and generating profit.

Manufacturing Overhead Cost

All indirect costs associated with the production process, including indirect labor, indirect materials, and other overhead expenses not directly tied to the production of specific goods or services.

Produced Units

The total number of units of product completed in a given period of time, often used to evaluate manufacturing efficiency.

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) associated with producing a specific amount of goods or services.