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What is used as the basis for management to make a "go/no go" decision regarding whether to proceed from the physical design phase to the implementation and conversion phase of the systems development life cycle?
Explicit Costs
These are direct payments made to others in the course of running a business, such as wages, rent, and materials.
Implicit Costs
Costs that represent potential benefits foregone when resources are not utilized in their next-best alternative use.
Economic Profit
The financial gain achieved when revenues from business activity exceed the explicit and implicit costs of that activity.
Implicit Costs
Costs that represent the opportunity costs of using resources that the firm already owns, unlike explicit costs which involve direct monetary outlay.
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