Business Essentials
Business Essentials
11th Edition
ISBN: 9780134138282
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 14, Problem 14.14A
Summary Introduction

To determine: The sources where a company can acquire the skills which it needs for its IS development and implementation and also include the anticipated cost of developing an information system in the company’s financial plan.

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List ways to avoid the following reasons for businesses failure; inability to develop and monitor financial statements, inability to balance business and family, and underestimation of the time requirements.
“Suppose that you have been given a summer job at J limited, a company that manufactures sophisticated radar sets for commercial aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: The cost of the memory chips used in a radar set. Factory heating costs. Factory equipment maintenance costs. Training costs for new administrative employees. The cost of the solder that is used in assembling the radar sets. The travel costs of the company’s salespersons. Wages and salaries of factory security personnel. The cost of air-conditioning executive offices. Wages and salaries in the department that handles billing customers. Depreciation on the equipment in the fitness room used by factory workers. Telephone expenses incurred by factory management.…
Analyze the business model of a firm you are familiar with or have worked for before. Costs are influenced by a variety of factors, including: How can the business save money by using Information Systems?
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