Another Alternative to Buying a Canned System or In-House Development

question 75

Multiple Choice

Another alternative to buying a canned system or in-house development is to have a third-party vendor develop a custom system.Which guideline below should not be used by the organization to select an outside developer for a custom system?

• A)The outside developer should have an in-depth understanding of how the company conducts its business.
• B)The outside developer should have experience in the company's industry.
• C)The outside developer should possess a good understanding of business in general.
• D)The outside developer that charges the least for the system should be chosen over others.

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Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum number of possible units a company can produce of two products within a set of inputs.

Specialize

Concentrating on and becoming expert in a particular subject or skill.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.