Firms Should Consider Developing Custom Software Only If

question 96

Multiple Choice

Firms should consider developing custom software only if

• A)it will be used for critical functions like accounts receivable.
• B)it will contribute to development of a significant competitive advantage.
• C)the firm has the necessary expertise available in-house.
• D)the available canned software is very expensive.

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Definitions:

Annual Sales

The total revenue a company generates from its operations over the course of a year.

Cash Expenses

Cash expenses are expenditures that a business or individual pays out in cash during a specified period, as opposed to non-cash expenses such as depreciation.

Planetary Gearset

A planetary gearset is a compact and efficient gear system used in transmissions, consisting of one central "sun" gear, multiple "planet" gears that orbit the sun gear, and a "ring" gear encompassing the planet gears.