The Perception That Information Technology Must Have a Return on Investment

question 11

Multiple Choice

The perception that information technology must have a return on investment that meets the same criteria as purchasing any piece of equipment is best classified as viewing IT as a(n) :

• A) investment center.
• B) cost center.
• C) profit center.
• D) data center.

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Definitions:

Price Variance

The difference between the standard cost of a product or service and its actual cost, used in budgeting and financial analysis.

Quantity Variance

A measure used in budgeting and accounting to compare the actual quantity of materials or products used to the expected amount under standard costing.

Cost Variance

The difference between the expected cost of a project or production and the actual cost.

Price Variance

The difference between the actual price paid for something and its standard or expected cost.