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GAQM Exam CBAF-001 Topic 3 Question 63 Discussion

Actual exam question for GAQM's CBAF-001 exam
Question #: 63
Topic #: 3
[All CBAF-001 Questions]

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?

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Suggested Answer: A

by Daren at Dec 07, 2024, 08:41 PM

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Zack
10 days ago
But the IT director mentioned that changing to a different operating system will cost $6 million, so the avoided cost should be less than that.
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Alease
12 days ago
Hmm, the key is to focus on the cost savings. The avoided cost seems to be the difference between the two options, so that's gotta be B) $4 million.
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Merri
2 days ago
I think the avoided cost is $4 million.
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Lizbeth
15 days ago
I disagree, I believe the avoided cost is $4 million.
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Zack
19 days ago
I think the avoided cost in the proposal is $2 million.
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