An Organization Might Request Bids for Computer Resources from Only

question 173

Multiple Choice

An organization might request bids for computer resources from only one vendor for all of the following reasons except:

• A) to reduce training cost by staying with its present vendor
• B) to satisfy a specialized need
• C) to improve its bargaining position by maintaining a competitive selection posture
• D) to minimize conversion cost by staying with its present vendor

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Definitions:

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered or altered by current or future actions.

Decision Making

Selecting a course of action from competing alternatives.

Avoidable Cost

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.