When a Company Outsources a System, Control Over Prioritizing Fixes

question 94

Multiple Choice

When a company outsources a system, control over prioritizing fixes for software failures and problems belongs to the ________.

• A)CTO
• B)vendor
• C)hiring organization
• D)CIO

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Definitions:

Time Value

The idea that money currently in hand is more valuable than an identical sum received later, because of its ability to earn more over time.

Relevant Cash Flow

Cash flows that will occur as a direct result of a decision made by a business, essential in capital budgeting and investment analysis.

Interest Expense

The cost incurred by an entity for borrowed funds, often a significant component of its operating costs.

Initial Cost

The total expense incurred to acquire an asset, including the purchase price and any other costs necessary to get the asset ready for use.