ITPEC FE Morning October 2019 Question 63
Concerning computerization costs, which of the following is the cost that indicates the running cost?
Explanation
Maintenance of a server and other equipment — a running cost recurs for as long as the system is in operation.
The total cost of a computerized system (its TCO) splits into two kinds. Initial costs are paid once, before the system goes live: planning and consulting, requirements definition and design, development, purchase and installation. Running costs are paid again and again after go-live: equipment and software maintenance, operation staff, communication lines, power, consumables. Maintenance of a server continues every year the server is used, so it is a running cost.
Answer (d)
Why not others:
- •(a) — consulting for information systems strategy planning happens once, at the planning stage, so it is an initial cost
- •(b) — system engineering to define performance requirements is design work done before the system is built, an initial cost
- •(c) — installing a software package is a one-time setup before operation, an initial cost
Key rule: Ask when the cost arises: once, before go-live, it is an initial cost; repeatedly, while the system is in use, it is a running cost, and TCO adds both over the system's life.
System Component · AI-written, may contain errors
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