Management Should Control the Development of End-User Applications by

question 4

Multiple Choice

Management should control the development of end-user applications by

• A) developing a formal development methodology.
• B) requiring cost justification for end-user IS projects.
• C) establishing standards for user-developed applications.
• D) both B and C
• E) both A and B

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Definitions:

Replacement Projects

Investments undertaken to replace old or damaged assets in order to maintain operational efficiency.

Perpetuity Formulas

Mathematical equations used to calculate the value of payments or cash flows that continue indefinitely.

Terminal Values

The estimated value of an asset at the end of its useful life or an investment at the end of a forecast period.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.