To Determine If an Information System Delivers Net Savings in Costs

question 96

True/False

To determine if an information system delivers net savings in costs, the cost of developing and operating the information system will need to be offset against the gains in reduced errors and paper, ink, and printing costs.

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Definitions:

Disposable Income

Available monetary resources for households post-income tax for spending and saving purposes.

Consumption

The use of goods and services by households. It is a primary component of economic activity and a key indicator of economic health.

Dissaving

Dissaving occurs when expenditures exceed income, leading to a depletion of savings or the accumulation of debt.

APC

The abbreviation for Average Propensity to Consume, which is the fraction of income that is spent on consumption rather than saved.