GAQM Exam CBAF-001 Topic 2 Question 49 Discussion

Actual exam question for GAQM's CBAF-001 exam

Question #: 49
Topic #: 2

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?

A$2 million.

B$4 million.

C$6 million.

D$8 million.

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Suggested Answer: A

by Brinda at Jun 21, 2024, 09:06 PM

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Filiberto

5 months ago

I'm feeling like a rebel today, so I'm going to pick A) $2 million. Why? Because I want to see the look on the examiner's face when I prove them wrong! Okay, maybe that's not the best strategy, but it would be kind of funny, right?

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Geoffrey

4 months ago

I would go with the safer option and choose B) $4 million.

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Lazaro

4 months ago

That's a risky move, but it could be interesting to see the reaction.

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Merilyn

4 months ago

I think the avoided cost in the proposal is $2 million.

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Kanisha

5 months ago

I would go with the safer option and choose B) $4 million.

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Jenelle

5 months ago

That's a risky move, but it could be interesting to see the reaction.

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Nelida

5 months ago

I think the avoided cost in the proposal is $2 million.

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Virgie

5 months ago

Hmm, this is a tricky one. I'm going to go with B) $4 million. It's the difference between the $2 million hardware upgrade and the $6 million cost of the new operating system. Gotta love these cost-saving questions!

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Merri

5 months ago

I'm going with C) $6 million. The IT director said the change will cost $6 million, so that's the amount the company is avoiding by not sticking with the old system. Seems pretty straightforward to me.

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Ashley

5 months ago

Yeah, I think the same. The avoided cost is the cost of the new system, which is $6 million.

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Stephen

5 months ago

I agree, C) $6 million makes sense. It's the cost of the new system that the company is avoiding.

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Alexis

6 months ago

I see where you're coming from, Angella, but I think the avoided cost is still $2 million because that's the cost of the current upgrade.

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Vernice

6 months ago

Are you kidding me? It's D) $8 million! The company is avoiding the $2 million hardware upgrade and getting an additional $6 million in benefits from the new operating system. This is a no-brainer!

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Chantell

4 months ago

I'm glad we're all on the same page. The avoided cost in this proposal is definitely $8 million.

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Trina

4 months ago

The IT director's proposal makes sense. It's a strategic decision for the company's future.

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Mertie

4 months ago

I think so too. It's a smart move to invest in a new system that will bring long-term benefits.

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Xochitl

4 months ago

I agree, it's definitely D) $8 million. The benefits of switching to a new operating system outweigh the cost of the hardware upgrade.

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Angella

6 months ago

I believe the avoided cost is actually $4 million, since the alternative operating system costs $6 million.

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Kanisha

6 months ago

I agree with Lorrine, the avoided cost is $2 million because that's the cost of the hardware upgrade.

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Edmond

6 months ago

The answer is clearly B) $4 million. The company will save $2 million by not upgrading the hardware, and an additional $2 million by switching to the new operating system with cheaper maintenance and increased security. Easy peasy!

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