costs of information

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hardware

  • original cost- initial cost of computers, modems, cables etc.
  • replacing hardware- hardware needs to be replaced over time as it becomes damages, worn out and obsolete
  • maintenance- companies have maintenance contract with IT firm who regularly check and repair equipment, these can be expensive
  • storage of information- companies need to buy devices to back up informaiton on. the more space needed the higher the cost
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software

  • initial purchase- software need to be purchased in order to run equipment. operating software and utility software such as file management software might need to be brought seperately to the hardware. application software such as spreadsheets also needed. some companies will need specialist software to meet their needs
  • upgrading software- companies update software when new versions become avaliable to keep their systems up to date, purchasing them is expensive
  • licences- software licences may need to be renewed each year or if the company grows in size it may need to be updated
  • support costs- if companies experience a problem whilst using software they may need to contact a telephone help line, who charge at premium rates
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consumables

  • cost of paper, toners and cartridges are known as consumables and count towards the cost of information
  • needed when companies need to print information for staff and customers
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cost of labour

  • people need to process the data and they need to be employed by the company contributing to the cost of information
  • training- when new staff are hired or software is updatedstaff need training. this is expensive as they need to:

-pay the trainer

-pay wages of those being trained

-wages of person replacing those being trained

-costs of training venue

-lost productivity as they are trained

-slow productivity whilst newly trained staff learn the job

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