Which of the Following Is a Limitation of Using a Financial

question 51

Multiple Choice

Which of the following is a limitation of using a financial approach to evaluate information systems?

• A)inability to measure ROI
• B)inability to control vendor costs
• C)inability to assess risk
• D)inability to assess costs from organizational disruption
• E)inability to assess the cost of technology

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Definitions:

MPC

Stands for Marginal Propensity to Consume, which measures the portion of additional income that an individual spends on consumption.

Multiplier Value

A factor that quantifies the impact of a change in some economic activity on the rest of the economy.

MPC (Marginal Propensity to Consume)

A measure of the change in consumption resulting from a change in income; specifically, the proportion of additional income that is spent on consumption.

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.