CITM-001 · Question #57
Tangible costs savings can be difficult to estimate in some cases.
The correct answer is A. True. Tangible costs are those that can be easily quantified and measured, such as direct expenses or physical assets. However, in some cases, tangible costs savings can be difficult to estimate because they depend on various factors, such as the expected life cycle of the asset, the…
Question
Tangible costs savings can be difficult to estimate in some cases.
Options
- ATrue
- BFalse
How the community answered
(26 responses)- A88% (23)
- B12% (3)
Explanation
Tangible costs are those that can be easily quantified and measured, such as direct expenses or physical assets. However, in some cases, tangible costs savings can be difficult to estimate because they depend on various factors, such as the expected life cycle of the asset, the depreciation rate, the maintenance costs, the opportunity costs, and the market conditions. For example, if a company invests in a new production machine, the tangible cost savings would be the difference between the cost of the old machine and the cost of the new machine, plus the additional benefits of the new machine, such as higher output, lower energy consumption, and improved quality. However, these benefits may not be easy to measure or predict, especially in the long term. Therefore, tangible costs savings can be difficult to estimate in some cases.
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