Omaco, a Technological Firm, Recently Invested $20 Million to Design

question 53

Multiple Choice

Omaco, a technological firm, recently invested $20 million to design a data system that can access the already-stored information in the company servers at a higher speed than previous data systems. In this scenario, the money invested in the data system can be considered to be_____.

• A) acquisition cost
• B) processing cost
• C) retrieval cost
• D) storage cost

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Definitions:

Cost Reduction

The process or strategies aimed at decreasing the total expenses incurred by a business, thereby increasing its profitability.

Internet Business Models

Refers to the strategies and structures that businesses operating online use to generate revenue and sustain their operations.

Advertising-Based

Pertaining to a revenue model or content strategy that relies primarily on advertising for income generation.

Markup-Based

Referring to a pricing strategy where the selling price of a product is determined by adding a specific amount or percentage to its cost.