Firms that adopt software as a service actually buy a system's software and hardware, so these systems become a fixed operating expense.

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Firms that adopt software as a service (SaaS) do not buy the system's software and hardware. Instead, they pay a subscription fee to access the software and use it over the internet. This subscription fee is typically considered a variable operating expense, as it can be adjusted based on the usage needs of the firm.

Firms That Adopt Software as a Service Actually Buy a System's