Hardware and Software Acquisition Costs Account for About ________ Percent

question 16

Multiple Choice

Hardware and software acquisition costs account for about ________ percent of TCO.

• A) 20
• B) 40
• C) 60
• D) 80

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Definitions:

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable net assets.

Acquisition Differential Amortization

The process of systematically reducing the value of the excess amount paid over the fair value of net assets acquired in a business combination.

Equity Method

An accounting technique used to record investments in which the investor has significant influence but not control over the investee.

Voting Shares

Shares of a corporation’s stock that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.