During Physical Design, the Characteristics of the Hardware, Software, Database

question 25

True/False

During physical design, the characteristics of the hardware, software, database, telecommunications, personnel, and procedures and control specifications must be detailed.

Understand arguments for using gross or net figures in ROI calculations and their implications.

Identify the benefits of different performance measures in encouraging strategic expansion and efficient resource allocation.

Learn the principles and practices of service department cost allocation to operating departments.

Understand the role of fixed and variable cost separation in performance evaluation and decision-making.

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Definitions:

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investment activities.

Sensitivity Analysis

A method employed to understand the effect of varying independent variable values on a specific dependent variable, considering certain assumptions.

Net Present Value (NPV)

The discrepancy between cash inflows' present value and cash outflows' present value during a defined timeframe.

Scenario Approach

A strategic planning method that explores future possibilities by simulating different plausible future outcomes.