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BH0-013 · Question #94

An IT department needs to upgrade its hardware to run the new version of an established operating system. The cost of this required upgrade is $2 million. As an alternative, the IT director has…

The correct answer is A. $2 million. See the full explanation below for the reasoning.

Question

An IT department needs to upgrade its hardware to run the new version of an established operating system. The cost of this required upgrade is $2 million. As an alternative, the IT director has suggested that the company should change to a completely different operating system. Although this will cost $6 million, the change will bring many other benefits, including cheaper maintenance costs and increased security. What is the avoided cost in his proposal?

Options

  • A$2 million.
  • B$4 million.
  • C$6 million.
  • D$8 million.

How the community answered

(48 responses)
  • A
    83% (40)
  • B
    2% (1)
  • C
    4% (2)
  • D
    10% (5)

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