ERP Implementations Are at Risk to Extensive Cost Overruns

question 52

Essay

ERP implementations are at risk to extensive cost overruns. Discuss three of the more commonly experienced problems area.

---

Definitions:

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Implicit Cost

The opportunity cost equal to what a firm must give up or forgo in order to use resources in its own operations, not directly paid in money.

Part-Time Employees

Part-time employees are workers who are employed for fewer hours than the standard full-time work schedule, often without the same benefits as full-time employees.