You are using a capital budgeting method to assess the worth of your company's new information system.Which of the following costs would you include in measuring the cash outflow?
A)Increased sales of products
B)Hardware and software expenditures
C)Labor expenditures
D)Reduced costs in production and operation
E)Hardware,software,and labor expenditures

Question

Quizplus · Accepted Answer

The cash outflow would include all of the costs associated with the implementation of the new information system, including hardware, software, and labor expenditures. While increased sales of products and reduced costs in production and operation may influence the overall financial benefits of implementing the new system, they would not be included in measuring the cash outflow.

You Are Using a Capital Budgeting Method to Assess the Worth