What Is a Drawback to Using the Requirements Costing Method

question 29

Multiple Choice

What is a drawback to using the requirements 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.

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Definitions:

Regressive Taxation

A tax system where the tax rate decreases as the taxable amount increases, meaning lower-income individuals pay a higher percentage of their income compared to higher-income earners.

Tax Incidence

The distribution of tax burden among taxpayers; who ultimately pays the tax.

Marginal Tax Rate

The percentage of each additional dollar of income that goes to the tax.

Regressive

A term used to describe a tax system in which the tax rate decreases as the taxpayer's income increases, placing a larger burden on lower-income earners.