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.
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)- A90% (60)
- B6% (4)
- C3% (2)
- D1% (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.
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.
'Total ownership costing' is not a recognized or standard IT financial or procurement term.
'Sustainability fees' is not a standard IT cost category and does not describe ongoing post-implementation operational costs in a recognized framework.
'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
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