What is meant by TCO and how is it used to evaluate ERP system bids?
What will be an ideal response?
TCO is short for "Total Cost of Ownership" and this provides a financial framework for comparing different ERP bids and alternative designs. TCO costs include hardware, software, training, and implementing the system. They also include all the cost of maintenance, optimization, and upgrading for a period of two years after the installation. Some claim that this is not a very accurate measure of ERP systems, but it is a helpful input into the ERP selection process.
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Assume that a project consists of an initial cash outlay of $100,000 followed by equal annual cash inflows of $40,000 for 4 years. In the formula X = $100,000/$40,000, X represents the
a. payback period for the project. b. profitability index of the project. c. internal rate of return for the project. d. project's discount rate.
Which of the following did the International Labour Organization identify as risk(s) facing workers at the end of global supply chains?
a. Human rights violations b. Poor working conditions c. Human trafficking d. All of the above
A reference line tells what a letter is about.
Indicate whether the statement is true or false.
AGI is used as the base for application of percentage limitations (i.e., 20%, 30%, 50%) that apply to the charitable contribution deduction for regular income tax purposes. Modified AGI is used as the base for application of percentage limitations that apply to the charitable contribution deduction for AMT purposes
a. True b. False Indicate whether the statement is true or false