Which of the Following Is the Best Example of a Transactions

question 163

Multiple Choice

Which of the following is the best example of a transactions cost?

• A) the value of the time spent negotiating a contract
• B) the price of a new set of tires
• C) the cost associated with producing a golf club
• D) the price of labor and materials used to produce a house
• E) the price of food

---

Definitions:

IT Architecture

The structural design of information technology systems and services, including the physical and software components, their interrelationships, and the principles governing their design and evolution.

Applications Software

Programs designed to carry out specific tasks for the user, such as word processors, web browsers, and email clients.

IS Planning Process

The strategic process within organizations aimed at identifying information system needs to support business objectives and operations.

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.