Which of the Following Statements Regarding Software Acquisition (Purchase Vs

question 179

Multiple Choice

Which of the following statements regarding software acquisition (purchase vs.in-house development) is false?

• A)software developed in house can cost 10 times more than purchased software
• B)when a suitable software package is available for purchase, it is better to buy it rather than try to reinvent it in-house
• C)the annual maintenance of in-house software is typically 25% of its cost, whereas the annual maintenance of purchased software is typically 50% of the purchase price
• D)none of the statements are false

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Definitions:

Variable Demand

A situation where the demand for products or services fluctuates over time, affected by various factors such as seasonality, market trends, or economic conditions.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in manufacturing and project management.

Standard Deviation

A measure of the dispersion or variability in a set of data points, indicating how spread out the values are from the mean.

Safety Stock

Additional inventory held to protect against stockouts caused by variability in supply or demand.