ITPEC FE Morning October 2019 Question 63
ITPEC FE Morning October 2019 — Question 63 of 80
Computerization Costs (Initial vs Running) — distinguish which costs occur before vs after system launch.
Computerization costs split into two categories:
- •Initial costs — one-time expenses before the system goes live: planning, design, development, procurement, installation
- •Running costs — ongoing expenses after the system is operational: maintenance, utilities, support staff, consumables
(d) is correct: maintenance of information-processing equipment (e.g., a server) is a recurring expense incurred after deployment — a classic running cost.
Why not others:
- (a) Consulting for IS strategy planning is a one-time activity during the planning phase — initial cost
- (b) System engineering for performance requirements happens during design — initial cost
- (c) Installation of software packages is a one-time setup activity — initial cost
Key rule: if the expense happens before go-live → initial cost; if it recurs after go-live → running cost.
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