Section A

LogiChain is a global logistics firm that has recently migrated its entire fleet tracking and route optimization software to a cloud computing environment.

Which of the following is a primary advantage of this migration for LogiChain's performance management?

Answer options:

It completely eliminates the risk of data breaches and cyber-attacks.

It converts fixed IT infrastructure costs into variable operational costs, improving cost flexibility.

It ensures that the system can operate independently of internet connectivity.

It automatically guarantees an increase in the company's return on investment (ROI).

How to approach this question

Consider the financial and operational characteristics of cloud computing compared to on-premise servers.

Full Answer

B.It converts fixed IT infrastructure costs into variable operational costs, improving cost flexibility.✓ Correct

Cloud computing allows organizations to avoid large upfront capital expenditures on IT infrastructure (fixed costs) and instead pay for what they use as an operating expense (variable costs). This provides scalability and cost flexibility.

Common mistakes

Assuming cloud computing is inherently 100% secure or guarantees financial returns.

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Practice the full ACCA PM — Performance Management Practice Exam 3

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