You Are Using a Capital Budgeting Method to Assess the Worth

question 97

Multiple Choice

You are using a capital budgeting method to assess the worth of your company's new information system.Which of the following costs would you include in measuring the cash outflow?

• A)Increased sales of products
• B)Hardware and software expenditures
• C)Labor expenditures
• D)Reduced costs in production and operation
• E)Hardware,software,and labor expenditures

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Definitions:

Misrepresentations

False statements or lies that are made with the intention of deceiving or misleading someone, often in a legal or contractual context.

Principal

The main party to a transaction, who has the primary responsibility, or in an agency relationship, the person for whom the agent acts.

Agent

A person authorized to act on behalf of another (known as the principal) in business transactions or other matters.

Transaction

An agreement or exchange between two or more parties that entails a transfer of goods, services, funds, or any other item of value.