Which type of cost is considered as actual costs of analysis, design, and installation for the system?

Which type of cost is considered as actual costs of analysis, design, and installation for the system?
A . Service cost
B . Maintenance cost
C . Operating cost
D . Development cost

View Answer

Answer: D

Explanation:

Development cost is the type of cost that is considered as actual costs of analysis, design, and installation for the system. Development cost includes the expenses incurred during the planning, designing, building, testing, and deploying of a system. Development cost is usually estimated before the start of a project and is used to measure the feasibility and profitability of a system. Development cost is also used to monitor the progress and performance of a project and to control the scope and quality of a system.

Reference: CITM Course Outline, Module 4, Corporate IT Strategy, page 9. CITM Training Course, Cost, page 14. CITM Certification Overview, Exam Information, Course Outline, Module 4.