ITPEC FE Morning October 2022 Question 69
ITPEC FE Morning October 2022 — Question 69 of 80
Project Management — calculating total development cost across multiple methods using person-month costs.
For each method, total cost = purchase cost + outsourcing cost + Σ(persons × months × rate per process).
Rates: creation = $6,000/person-month; modification = $10,000/person-month; evaluation = $10,000/person-month.
- •(a) 200,000 + (4×3×10,000) + (1×2×10,000) = $340,000 ✓ cheapest
- •(b) 350,000 flat = $350,000
- •(c) (10×3×10,000) + (3×2×10,000) = $360,000
- •(d) (10×6×6,000) + (2×2×10,000) = $400,000
Why not others:
- (b) Outsourcing flat fee ($350k) exceeds option (a)
- (c) 10 people in modification × 3 months drives cost to $360k
- (d) 10 people in creation × 6 months = $360k alone, plus evaluation
Key rule: Always calculate person-month cost as persons × months × rate for each process separately, then sum all cost components.
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