Country Western Clothing Outfitters is considering investing in an inventory tracking system. It will have $10,500 in software costs and $8800 in employee training costs. Computer hardware also needs to be upgraded for the system; the hardware upgrades are expected to be $12,600. The expected benefits from the inventory tracking system should be $28,800. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Question

Quizplus · Accepted Answer

The total costs are $10,500 (software) + $8,800 (training) + $12,600 (hardware) = $31,900. The benefits are $28,800. Therefore, costs outweigh benefits by $31,900 - $28,800 = $3,100.

Country Western Clothing Outfitters Is Considering Investing in an Inventory