One Key Disadvantage of an Application Service Provider Is That

question 15

True/False

One key disadvantage of an application service provider is that a "pay as you go" structure is often more expensive than what a company would pay if it had purchased the software outright.

---

Definitions:

Total Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a certain period of time.

Profit-Maximizing

The process or strategy of adjusting production and operations to generate the highest possible profit.

Total Profit

Total profit is the financial gain made by a business after subtracting all expenses from the total revenue generated from sales and other sources.

Market Share

The share of a market that a certain product or company holds.