Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN: 9781133935940
Author: Ulric J. Gelinas
Publisher: CENGAGE L
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Chapter 8, Problem 10DQ
“Contracting for a hot site is too cost-prohibitive except in the rarest of circumstances. Therefore, the vast majority of companies should think in terms of providing for a cold site at most.” Discuss fully.
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There are three options for the software package solution. Although all three packages are considered to be adequate for the intended purpose, there are licensing and pre-installation customization fees that differ between the potential solutions. Accordingly, there are also differences in how much incremental revenue the software will create – through increased revenue opportunities as well as cost savings. It is anticipated that the risk level of the project will be associated with the level of customization required – the more customization, the higher the risk that something will go wrong.
For the three options, use an appropriate financial measurement to identify the correct software solution. Your company’s finance department has instructed you to use the following rates based on differing levels of risk:
High risk: 20%
Medium risk: 12%
Low risk: 5%
Software
License fee
Customization
Estimated annual benefit
Number of years in service
Option A
1,400,000
350,000
185,000
10…
Chapter 8 Solutions
Pkg Acc Infor Systems MS VISIO CD
Ch. 8 - What are the four major categories of pervasive...Ch. 8 - What are the differences among a pervasive control...Ch. 8 - Prob. 3RQCh. 8 - Describe some compensating controls that can be...Ch. 8 - What are policy controls plans? How do policies...Ch. 8 - Why should an organization conduct monitoring...Ch. 8 - Prob. 8RQCh. 8 - Prob. 14RQCh. 8 - What are the major elements of the strategic IT...Ch. 8 - Prob. 16RQ
Ch. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - What are the four stages through which a program...Ch. 8 - What steps are commonly included in a business...Ch. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 25RQCh. 8 - Prob. 26RQCh. 8 - Prob. 27RQCh. 8 - Prob. 28RQCh. 8 - Prob. 30RQCh. 8 - Prob. 31RQCh. 8 - Prob. 32RQCh. 8 - Prob. 33RQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - No matter how sophisticated a system of internal...Ch. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Contracting for a hot site is too cost-prohibitive...Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1SPCh. 8 - Prob. 2SPCh. 8 - Prob. 3SPCh. 8 - Listed here are 20 control plans discussed in the...Ch. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 7P
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- Argus Company anticipates that other sales will be affected by the acceptance of a special order. What should the company do? O Reject the order. O Consider the opportunity cost of lost sales in the incremental analysis. O Accept the order. O Accept the order if the plant is below capacity.arrow_forwardIntangible benefits are usually extremely difficult to quantify accurately. Some designers argue that if you understate them, then conservative estimates are produced. Any excess benefits will be greatly welcomed but not required for the new system to be a success. What are the dangers of this viewpoint?arrow_forwardWhich of the following is not a consideration when a manager is deciding to discontinue a product or product line? Whether the product has a positive or negative contribution margin. Determining if direct fixed costs could be avoided if the product or product line is discontinued. If discontinuing the product or product line will affect sales of remaining products. Not having any free capacity.arrow_forward
- If the organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. True or False?arrow_forward52. Which of the following is true for a make-or-buy decision? Group of answer choices b. Depreciation on equipment used in making the component and having no other use is the critical factor in the decision. c. The company should make the component if the purchase price is less than the per-unit variable cost to make the component. d. The reliability of the outside supplier of the component is unimportant to the decision as this is not quantifiable. e. The quality of the component from the outside supplier is relevant in eventually making the decision.arrow_forwardPossible Risks of Maintaining Fewer Suppliers?arrow_forward
- When it comes to deploying ABC systems, what are the primary expenses and limitations?arrow_forwardCompetitors often inquire about the price of a competitive product. A firm called iSuppli will breakdown complex electronics for a fee and tell you how much it would cost to duplicate the device. The difference between the costs of the pairs and the labor costs to put the components together isn't entirely profit. Non-production expenses include things like research, design, marketing, patent fees, and selling. What are the types of costs associated with research, design, marketing, patent fees, and selling, and how are they accounted for?arrow_forwardDo you think distributor storage with last mile delivery is good for theautomotive spare industry? Why? Discuss the performance in terms of costfactors and service factors.arrow_forward
- Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize productionarrow_forwardYau are the project munager for a technical implementstion project. The customer has requested that you factor in the after-the-project costs such as maintenance and sence. This is in example of which one of the following. A. Life griecosts B. Scope creep C Propect spin olf 0, Operationsarrow_forwardTRUE OR FALSE a, A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. b. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units. c. Two or more products that are produced from a common input are known as joint products. d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions. - e. A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. f. Eliminating nonproductive processing time is particularly important in a bottleneck operation. g. In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable. PLEASE ANSWER D,E,F,Garrow_forward
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