Which of the Following Typically Is the Biggest Cost Component

question 84

Multiple Choice

Which of the following typically is the biggest cost component in an organization's IT spending?

• A)cost of keeping the IT services running
• B)cost of buying computer hardware
• C)cost of buying new software
• D)cost of building IT infrastructure other than computers

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Definitions:

Cash Inflows

Money received by a company during a specific period from activities like sales, investments, financing, etc.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Initial Cost

The initial expenditure involved in acquiring an asset or launching a project, not including operational or maintenance costs.

Equipment

Tools, machinery, and other durable assets used in the production of goods or services.