What Is a Drawback to Using the Requirement Costing Method

question 111

Multiple Choice

What is a drawback to using the requirement costing method of software and hardware evaluation?

• A)Dollar estimates of costs and benefits are not included.
• B)Intangible factors such as reliability and vendor support are overlooked.
• C)The weights and points used are assigned subjectively.
• D)There is no drawback to using the requirements costing method.

---

Definitions:

Supply

The overall quantity of a particular product or service accessible to buyers.

Demand Curve

A depiction in graphic form that illustrates the link between the cost of a merchandise and the volume of demand from buyers.

Equilibrium Quantity

The quantity of goods or services at which supply equals demand, and there is no tendency for change in the price or quantity.

Normal Good

A type of good for which demand increases as consumer income rises, reflecting goods that are more desirable as financial conditions improve.