How Does the Technical View of Organizations Fall Short of Understanding

question 8

Multiple Choice

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?

• A)It sees information systems as a way to rearrange the inputs and outputs of the organization.
• B)It sees capital and labor as primary production factors.
• C)It sees an organization as a collection of rights,privileges,obligations,and responsibilities.
• D)It sees the organization as a social structure similar to a machine.
• E)It sees the inputs and outputs,labor and capital,as being infinitely malleable.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future investment or business decisions.

Variable Costs

Expenses that directly fluctuate in relation to the amount of goods produced or the volume of sales.

Total Fixed Cost

The sum of all costs that do not change with the level of output or sales in the short term, such as rent and salaries.

Activity Bases

Metrics used to allocate costs based on various activities or drivers that cause costs to be incurred.