The question of economic feasibility is important when designing and implementing a new system.Accountants can contribute to feasibility study analysis by evaluating cost savings and other benefits versus operating costs and other cash outflows.This is better known as
A)the "best guess" model of benefit analysis.
B)the "value added" benefit model.
C)the capital budgeting model.
D)the estimated benefits model.

Question

Quizplus · Accepted Answer

The capital budgeting model involves analyzing the costs and benefits of proposed projects or investments, and determining whether or not they are financially feasible. This aligns with the concept of evaluating cost savings and operating costs mentioned in the question. The other choices do not accurately reflect this type of analysis.

The Question of Economic Feasibility Is Important When Designing and Implementing