Callow Youth Clothing (CYC)declared bankruptcy in 2007 and has since closed 27 stores,which amounts to over half of its retail outlets.One of the conditions specified for emergence from bankruptcy is a reduction in the cost of operating the firm's accounting information system.Which of the following may be recommended?
A) Replace the existing system with one of a smaller scale.
B) Customize the existing system.
C) Outsource system operations.
D) Purchase a canned software system.

Question

Quizplus · Accepted Answer

Outsourcing system operations would most likely result in a cost reduction since the company would not need to maintain staff and hardware for the accounting information system. Choosing option A or B would still require the company to maintain the system itself, which may not be financially feasible. Option D would require a significant upfront investment and may not be necessary for the company's needs.

Callow Youth Clothing (CYC)declared Bankruptcy in 2007 and Has Since