If a System Is Being Updated Due to Operating Necessity,the

question 11

Multiple Choice

If a system is being updated due to operating necessity,the project was selected because__________.

• A)the system is worth saving at any cost
• B)the system is worth saving at the estimated cost of the project
• C)the dimension of cost is not relevant to execution of the project
• D)the cost overruns can be hidden in someone else's budget

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Definitions:

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.

Cash Cycle

The period between the outlay of cash for raw materials and receiving cash from customer payments, essentially measuring the time it takes for a company to turn its inventory into cash.

Compensating Balance

A minimum account balance that a borrower must maintain in a bank as a condition for obtaining a loan, often used to offset a portion of the bank's lending costs.