The Part of the IT Budget That Is Spent on Technology

question 44

Multiple Choice

The part of the IT budget that is spent on technology designed to deliver new business value and achieve the enterprise's strategic objectives is called:

• A) operations costs.
• B) capital costs.
• C) strategic investments.
• D) staffing costs.
• E) application development costs.

---

Definitions:

Acquisition of Inventory

The process of obtaining goods or materials for sale or use, either through purchase or production.

Purchases Account

A general ledger account in which the purchases of goods intended for resale are recorded.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Overall Profitability

An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.