Question

In a cost-benefit analysis, a software package that permits an organization to offer its customers expanded services would be considered an opportunity to ____.

Answer 1

Answer:

increase revenue

Explanation:

A software that offers more services to potential or current customers can increase the number of new customers and/or reduce customer churn rate.

• more customers ⇒ more revenue
• lower churn rate ⇒ more revenue

A cost benefit analysis is a process by which a business or anyone can decide if a new project or just buying something is worth it. If the benefits generated by the new project (or the new good purchased) are larger than its cost, then the project is positive and should be carried out. So the company must analyze whether the extra revenue generated by the new software will offset the costs of purchasing and implementing the software.

Answer 2

Answer:

Increase revenue

Explanation:

Cost benefit analysis involves comparism between the cost incurred by doing an activity and the benefit to be derived. For example if the cost of buying a machine is $100 and the revenue I can realise from it is $500 then the benefits outweighs the cost.

In this instance the software package permits an organization to offer its customers expanded services, therefore there is an opportunity to increase revenue.