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CBAP · Question #311

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. COTS fees. COTS (Commercial Off-The-Shelf) fees refer specifically to the ongoing costs owed to a vendor for a pre-built software solution after it has been deployed into production.

Strategy Analysis

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

  • AApplication fees
  • BLifecycle fee
  • CTCO - Total cost of ownership
  • DCOTS fees

How the community answered

(14 responses)
  • A
    14% (2)
  • B
    7% (1)
  • C
    7% (1)
  • D
    71% (10)

Why each option

COTS (Commercial Off-The-Shelf) fees refer specifically to the ongoing costs owed to a vendor for a pre-built software solution after it has been deployed into production.

AApplication fees

Application fees is not a standard BABOK or IT finance term for post-implementation vendor costs.

BLifecycle fee

Lifecycle fee is not a recognized term in the BABOK Guide for categorizing vendor costs after solution implementation.

CTCO - Total cost of ownership

TCO (Total Cost of Ownership) is a broader financial concept that encompasses all costs across the entire lifespan of a solution - including acquisition, implementation, training, and operations - not just the post-implementation vendor fees.

DCOTS feesCorrect

COTS fees are the recurring charges - such as licensing, maintenance, and support - that an organization pays to a vendor for commercial off-the-shelf software after implementation. This term specifically scopes the ongoing financial obligation to the vendor post-deployment, distinguishing it from one-time acquisition or implementation costs. In business analysis, understanding COTS fees is critical when evaluating the long-term financial viability of a vendor-supplied solution.

Concept tested: COTS solution cost classification post-implementation

Source: https://www.iiba.org/standards-and-resources/babok/

Topics

#COTS#solution costs#vendor management#lifecycle costs

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