Explain Systems Thinking and How Management Information Systems Enable Business

question 43

Essay

Explain systems thinking and how management information systems enable business communications.

---

Definitions:

Avoidable Cost

Costs that can be eliminated if a certain decision is made, not incurred if a particular activity is avoided.

Sunk Cost

A sunk cost is an expense that has already been incurred and cannot be recovered, often considered irrelevant for future business decisions.

Opportunity Cost

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

Incremental Revenue

Additional income generated from a new sale, project, or strategy, over and above existing revenue streams.