nerdexam
GIAC

GSLC · Question #410

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 A. Total cost of ownership. Total Cost of Ownership (TCO) is the comprehensive financial estimate that includes all direct and indirect costs of a solution across its entire lifecycle, including post-implementation production costs.

Security Program Management & Governance

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 cost of ownership
  • BTotal ownership costing
  • CSustainability fees
  • DLifecycle maintenance fees

How the community answered

(67 responses)
  • A
    90% (60)
  • B
    6% (4)
  • C
    3% (2)
  • D
    1% (1)

Why each option

Total Cost of Ownership (TCO) is the comprehensive financial estimate that includes all direct and indirect costs of a solution across its entire lifecycle, including post-implementation production costs.

ATotal cost of ownershipCorrect

Total Cost of Ownership (TCO) is a financial metric that accounts for every cost associated with acquiring, deploying, operating, and maintaining a solution over its full lifecycle. It explicitly includes ongoing costs after a vendor implements the solution in production, such as support, maintenance, training, and infrastructure. TCO is the standard industry term used to evaluate the true long-term financial impact of a technology investment beyond the initial purchase price.

BTotal ownership costing

'Total ownership costing' is not a recognized or standard IT financial or procurement term.

CSustainability fees

'Sustainability fees' is not a standard IT cost category and does not describe ongoing post-implementation operational costs in a recognized framework.

DLifecycle maintenance fees

'Lifecycle maintenance fees' refers only to a subset of ongoing costs and is not the accepted term that encompasses the full scope of costs before and after implementation.

Concept tested: Total Cost of Ownership definition in IT procurement

Source: https://www.isaca.org/resources/glossary#glossary-t

Topics

#total cost of ownership#TCO#vendor management#cost analysis

Community Discussion

No community discussion yet for this question.

Full GSLC Practice