In the Context of the Planning Phase of the Systems

question 25

Multiple Choice

In the context of the planning phase of the systems development life cycle (SDLC) , which of the following is an example of an internally identified problem in information systems?

• A) Distributers demanding an increase in their profit margin before the launch of the system
• B) Suppliers noting inefficiency in the inventory control procedure
• C) Management voicing concern about the organization's lack of a competitive edge in the marketplace
• D) Government regulations that need to be followed by the system for its approval in the global marketplace

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Definitions:

Time Value of Money Concept

A principle that the value of money is dependent on time, primarily due to the potential earning capacity of money over time.

Investment Rationing

Allocating scarce capital funds among various potential investments to achieve the best return, often under budget constraints.

Capital Rationing

The process of selecting the most profitable projects under a fixed budgeting limit to maximize the value of a firm.

Cost-Volume-Profit Analysis

The systematic examination of the relationships among selling prices, volume of sales and production, costs, expenses, and profits.