The operation manager of Marcoba Bhd is seeking your advice on his company's request for acomputer software to be used in managing the sales of the company. He is unsure of how toobtain the computer software but realizes that different types of acquisition will impact thecompany's financial statement differently. He is considering the following possibilities: a)Making a purchase of the computer software externally. The quotation that he has receivedincludes packages for payroll and general ledger. b) Making a purchase of a computersoftware that can be incorporated into a sales system that the company will develop. c)Signing a contract with independent programmers to develop a computer software that willspecifically cater for Marcoba Bhd's own use d) Employing own programmers to write acomputer software that the company will use. Required: Advice the operation manager on theimpact of each possibility above on the company's financial statement

The objective of this question is to understand the financial implications of different methods of…

Answered: The operation manager of Marcoba Bhd is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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