Discuss GAQM CBAF-001 Exam Topic 4 Question 24

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.

Suggested Answer: A

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13 comments · newest first

Tish 12 months ago

I agree, $4 million makes sense when you compare the costs.

Cora 12 months ago

Wait, how is changing OS worth $6 million? Seems high!

Carman 12 months ago

Definitely $6 million if you consider the total switch.

Hayley 1 year ago

I think the avoided cost is actually $4 million.

Hyun 1 year ago

The upgrade cost is $2 million.

Yuette 1 year ago

If we go with the new OS, we’re looking at $6 million total, but the avoided cost should just be the $2 million for the upgrade, I think.

Providencia 1 year ago

I practiced a similar question where we had to compare costs, but I can't recall if we included future savings in the avoided cost.

Lajuana 1 year ago

I think the avoided cost is just the initial upgrade cost of $2 million, right? That seems to make sense.

Katie 1 year ago

I remember something about avoided costs being the difference between options, but I'm not sure how to calculate it here.

Lashandra 1 year ago

Option B sounds promising. If the REST services are already there, we just need to enable them. I'll double-check the details, but that seems like the most straightforward approach.

Phil 1 year ago

I'm pretty sure this is the nominal group technique, but I'll double-check the definitions just to be sure.

Tamar 1 year ago

Okay, I've seen questions like this before. I know the standard deviation of the sample means is equal to the population standard deviation divided by the square root of the sample size.

Gregoria 1 year ago

I'm a bit confused; I thought it was D, half the standard charge, but there might be an exception I overlooked in the material.

GAQM CBAF-001 Exam - Topic 4 Question 24 Discussion