Which of the Following Is True of Cost-Benefit Analysis

question 14

Multiple Choice

Which of the following is true of cost-benefit analysis?

• A)It evaluates the design of data structure and content.
• B)It is a review of how soon the system of software application will become outdated.
• C)It shows the flow of data between departments.
• D)It compares the expense of completing a task with and without an automated system.
• E)It evaluates the frequency and criticality of automating specific tasks within a functional area.

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Definitions:

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its life span.

Average Accounting Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Average Total Assets

The mean value of all assets owned by a company over a specific period, used in financial analysis to gauge the company's asset use efficiency.

Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future expected cash flows by the initial investment.