A Proposed Project Will Require the Use of Ten Machines

question 90

Multiple Choice

A proposed project will require the use of ten machines in a company.Each machine has five alternative uses.What is the simplest way to evaluate the desirability of the project?

• A) incremental analysis
• B) cost-volume-profit analysis
• C) opportunity cost approach
• D) scarce resource approach

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

CIO's Salary

The compensation package awarded to a Chief Information Officer, reflecting responsibilities in overseeing an organization's technology strategy.

SaaS

Software as a Service; a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over the internet.

PaaS

Platform as a Service, a cloud computing model that provides customers with a platform allowing them to develop, run, and manage applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app.