Which of the Following Statements Is True About Information Systems

question 42

Multiple Choice

Which of the following statements is true about information systems?

• A) Most firms spend a huge portion of their information technology budgets on training and system security.
• B) New programs should be thoroughly tested across the range of a firm's ware after deployment.
• C) Purchase, configuration, and licensing costs for packaged software account for most information technology expenses of a firm.
• D) Firms need to vigilantly manage the moving target of computer security issues.
• E) Total cost of ownership of information systems is often a redundant concept while making technology investment decisions.

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Definitions:

Opportunity Cost

The value of the next best alternative that is foregone as a result of making a particular decision.

Accounting Profits

The total revenues of a business minus the explicit costs, essentially the net income on the financial statements.

Total Revenue

The total income received by a firm from its sales of goods or services, calculated as the quantity sold multiplied by the selling price.

Barriers to Entry

Factors that prevent or hinder new competitors from easily entering an industry or area of business.