1. Last year, your company purchased a site license to the accounting software suite CookTheBooks® for $1,150. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter®, for $950. How should your company assess or quantify the cost of the decision to replace its software? The BeanCounter® software includes a monthly fee of $37 per site license (i.e., the fee to the company is $37 per month regardless of the number of computers on which the software is installed or how often it is used); how would the company characterize this cost (in terms of the concepts we've discussed this week which is short and long run production and cost)?
1. Last year, your company purchased a site license to the accounting software suite CookTheBooks® for $1,150. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter®, for $950. How should your company assess or quantify the cost of the decision to replace its software?
The BeanCounter® software includes a monthly fee of $37 per site license (i.e., the fee to the company is $37 per month regardless of the number of computers on which the software is installed or how often it is used); how would the company characterize this cost (in terms of the concepts we've discussed this week which is short and long run production and cost)?
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