The operation manager of Marcoba Bhd is seeking your advice on his company$$s request for

a computer software to be used in managing the sales of the company. He is unsure of how

to obtain the computer software but realizes that different types of acquisition will impact the

company$$s financial statement differently. He is considering the following possibilities:

a$)$ Making a purchase of the computer software externally. The quotation that he has

received includes packages for payroll and general ledger.

b$)$ Making a purchase of a computer software 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

will specifically cater for Marcoba Bhd$$s own use

d$)$ Employing own programmers to write a computer software that the company will use.

 

 

Required:

Advice the operation manager on the impact of each possibility above on the company$$s

financial statement