The Major Steps in the Process of Justifying Large-Scale EC

question 38

Multiple Choice

The major steps in the process of justifying large-scale EC and IT projects include each of the following except

• A) lay an appropriate foundation for analysis with your vendor, and then conduct your ROI.
• B) document and verify all figures used in the calculation. Clarify all assumptions.
• C) do not leave out strategic benefits, including long-term ones.
• D) be careful not to overestimate cost and underestimate benefits (a tendency of many managers).

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Definitions:

Continuous Budgeting

A budgeting approach that continuously updates the budget by adding a new period (month, quarter, etc.) as the current period is completed.

Annual Period

A 12-month time frame over which a business's financial performance is evaluated, which does not necessarily align with the calendar year.

Credit Sales

Sales in which the customer is allowed to pay at a later date, typically implicating the extension of credit from the seller to the buyer.

Collections

Collections involve the processes and activities undertaken by a business to pursue and receive payments owed by customers or debtors.