Which of the Following Is Not a Potential Problem or Risk

question 75

Multiple Choice

Which of the following is not a potential problem or risk of self-sourcing?

• A) It may increase inadequate end user expertise that leads to inadequately developed systems
• B) It increases the vulnerability of your strategic information because the end users are not involved in key development projects
• C) Lack of organizational focus creates "privatized" IT systems
• D) Insufficient analysis of design alternatives leads to subpar IT systems

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Definitions:

Total Variable Cost

The total of all costs that vary with the level of output, including costs such as materials and labor.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Marginal Cost Curve

A visual chart demonstrating the change in cost for manufacturing an additional unit of a product as production levels rise.

Average Variable Cost Curve

A graphical representation that shows the relationship between a firm's average variable costs and its quantity of output.