Considering the impacts of computerization on business operations, which of the following is generally <em>not</em> recognized as a typical effect of using computers for data processing?

Difficulty: Easy

Correct Answer: increased data-processing costs

Explanation:


Introduction / Context:
Information technology has transformed how companies operate. Automated data processing often reduces manual work and improves speed, quality, and scalability. This question asks you to identify which purported “impact” does not align with the typical benefits of computerization.


Given Data / Assumptions:

  • Automation replaces repetitive clerical tasks.
  • Digital systems enable rapid reporting and analytics.
  • Scale economies usually lower per-unit processing costs over time.


Concept / Approach:

Computerization commonly yields more and better information (accuracy, timeliness), enables easier growth (scalability), and requires fewer clerical workers (automation). While initial investment can be high, ongoing data-processing costs per transaction typically decrease relative to manual processes; hence “increased data-processing costs” is not a typical impact.


Step-by-Step Solution:

Compare each option with observed outcomes of automation.Identify contrary statement: increased costs are atypical once systems stabilize.Select “increased data-processing costs” as the exception.Confirm alignment with efficiency gains from IT adoption.


Verification / Alternative check:

Case studies show labor savings, faster cycle times, and reduced error costs; total cost per transaction drops despite capital outlays.


Why Other Options Are Wrong:

Easier growth, fewer clerical workers, more information: all are well-documented effects of computerization.

None: Incorrect because one option clearly diverges.


Common Pitfalls:

Confusing short-term capital expenses with long-term processing costs; TCO analysis emphasizes per-unit efficiency gains over time.


Final Answer:

increased data-processing costs

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