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Question 1 BEF Pte Ltd develops and sells both standard and customised software. On 1 January...
Really Nice Company Pte Ltd (RNC), a non-GST registered company, manufactures and markets computer hardware, middleware and software, and provides hosting and consulting services in areas of mainframe computer. On 1 September 2017, RNC entered into a 36-month InfoSphere Information Server (IIS) contract with a Singapore-based internet search provider. RNC’s financial year ends on 31 December. The terms of the contract are as follows: Monthly server consulting and maintenance fixed fee: $5,500 (to be billed monthly) A complimentary IIS computer...
Assume that TSA Inc. entered into a contract with Client Anon for $230,000 on January 1, Year 1, to transfer a software license and an additional $15,000 for the installation of the 16 software. The license entitles Anon to use the software in its current form over an unlimited period and does not include updates. Two years of customer support come free with the license. In recent stand-alone contracts with other customers for the same software, TSA has charged $200,000...
Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call center where customers can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and are shown below (all activities and costs are in thousands): Month Support Calls Call Center Cost 1 40...
Problem 5-52 High-Low Method, Scattergraph (LO 5-4) Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call center where customers can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and are shown below (all activities and costs are in thousands): Month...