The Expenses and Risks Associated with the Implementation or Upgrading

question 92

Multiple Choice

The expenses and risks associated with the implementation or upgrading of enterprise systems arise from the ________.

• A) need for encrypting a company's data before an enterprise system can use the data
• B) lack of resources within a company to handle the implementation of the system
• C) lack of variety in the enterprise systems currently being sold in the market
• D) resistance from a company's employees to changes in existing systems

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Definitions:

Unit Variable Costs

Costs that vary directly with the production volume, such as materials and labor, on a per-unit basis.

Contribution Margin Ratio

A financial metric that shows how much of a company's revenue is available after variable costs to cover fixed costs and generate profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, showing how much each unit contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.