Potential customers often use the ________ as a financial framework for evaluating the different ERP systems proposed to them.
A) ROI
B) NPV
C) PP
D) TCO

Question

Quizplus · Accepted Answer

TCO (Total Cost of Ownership) is a financial framework that takes into account all the costs associated with purchasing, implementing, and maintaining an ERP system over its entire lifecycle. This includes not just the initial purchase cost, but also ongoing costs such as software updates, training, and support. As such, TCO is a comprehensive way for potential customers to evaluate the true financial impact of different ERP systems. ROI (Return on Investment) and NPV (Net Present Value) are also important financial metrics to consider, but they focus more on the potential financial benefits that an ERP system can provide, rather than the overall cost of ownership. PP (Payback Period) measures the length of time it takes to recoup the initial investment in an ERP system, but again, does not provide a holistic view of all associated costs.

Potential Customers Often Use the ________ as a Financial Framework