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Question

The largest percentage of total life cycle cost of software is ____________.
  1. Design cost
  2. Maintenance cost
  3. Coding cost
  4. Testing cost

A
Maintenance cost
B
Coding cost
C
Design cost
D
Testing cost
Solution
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The largest percentage of total life cycle cost of software is Design cost.

Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system.

Software Life Cycle Cost Analysis is a tool CIO's and executives involved in the selection process should familiarize themselves with if they want to make a sound economic choice in software selection. Its purpose is to compare the cost between keeping the maintenance and upgrade agreement continuously in force versus the cost of reinstating such an agreement after a lapse.

Because it's common for companies to cancel maintenance and upgrade agreements after the initial mandatory period, understanding the cost to "reinstate" such agreements is a critical element in due diligence and risk assessment. Failure to undertake Software Life Cycle Cost Analysis can be an expensive mistake.

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