B&Z IncImplemented a New Information System Two Months Ago but There

question 6

Multiple Choice

B&Z Inc.implemented a new information system two months ago but there have been no concrete increases in productivity as a result of the system.A similar system has been in place at the company headquarters for the past two years,and this system has resulted in significant,quantifiable benefits.Which of the following reasons is the most likely explanation for the lack of results?

• A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.
• B) The new system is being used to redistribute market share rather than make the whole market bigger.
• C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.
• D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.
• E) The new system may be beneficial for individual firms but not for a particular industry or the economy as a whole.

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Definitions:

Goodwill

An intangible asset that represents the excess value of a company above its tangible assets and liabilities, often arising from factors such as brand reputation, customer relationships, and intellectual property.

Required Disclosure

Information that companies are mandated to provide in their financial statements to ensure transparency and adherence to accounting standards and regulations.

Software Production Costs

Expenditures associated with the development or acquisition of software, which may be capitalized and amortized over its useful life if it meets specific criteria.