Author Question: In one paragraph, name and briefly describe two specific costs that might be included in the total ... (Read 83 times)

Cooldude101 · **on:** Jul 7, 2018

In one paragraph, name and briefly describe two specific costs that might be included in the total cost of ownership of an online business initiative.

Question 2

No matter how a company measures the benefits provided by an online business implementation, it usually tries to measure those benefits in monetary units. In a paragraph or two, explain why this is a good practice.

uniquea123 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

The TCO of an electronic commerce implementation includes the costs of hardware (server computers, routers, firewalls, and load balancing devices), software (licenses for operating systems, Web server software, database software, and application software), design work outsourced, salaries and benefits for employees involved in the project, and the costs of maintaining the site once it is operational.

Answer to Question 2

No matter how a company measures the benefits provided by an online business implementation, it usually tries to convert the raw activity measurements to monetary units. Having the benefits expressed in monetary units lets the company compare benefits to costs and compare the net benefit (benefits minus costs) of a particular initiative to the net benefits provided by other projects. Although each activity provides some value to the company, it can be difficult to measure the value in monetary units precisely. Usually, even the best attempts at these measurement conversions yield only rough approximations.