CBAP · Question #209
What is the term used to describe the cost of the solution after the solution has been implemented in production by a vendor?
The correct answer is D. Total cost of ownership. Total Cost of Ownership (TCO) is the standard term for the full ongoing cost of a solution after it has been deployed into production, encompassing all post-implementation expenses.
Question
What is the term used to describe the cost of the solution after the solution has been implemented in production by a vendor?
Options
- ATotal ownership costing
- BLifecycle maintenance fees
- CSustainability fees
- DTotal cost of ownership
How the community answered
(28 responses)- A7% (2)
- B4% (1)
- C4% (1)
- D86% (24)
Why each option
Total Cost of Ownership (TCO) is the standard term for the full ongoing cost of a solution after it has been deployed into production, encompassing all post-implementation expenses.
Total ownership costing is not a recognized standard term in business analysis or IT financial management.
Lifecycle maintenance fees refers only to the subset of recurring maintenance charges, not the comprehensive total cost concept that includes all ownership expenses.
Sustainability fees is not a standard or recognized term for describing post-implementation solution costs.
Total Cost of Ownership is the widely accepted industry term that captures all costs associated with a solution over its operational life, including initial implementation costs plus all ongoing maintenance, support, and operational costs after the vendor delivers the solution to production. TCO is used in business cases and solution evaluations to give a complete financial picture beyond just the purchase or build price.
Concept tested: Total Cost of Ownership definition
Source: https://www.iiba.org/career-resources/a-business-analysis-body-of-knowledge/
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