Lack of historical data and prior knowledge of an information system makes it difficult to estimate the cost of an information systems project. Required: Formulate a checklist that could assist an organization in identifying, quantifying and evaluating information systems costs.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

 Feasibility study: Preparation of gross estimates of developments, implementation and operation costs for each probable alternative solution.
Development costs are one-time costs that will not recur after the project has been completed e.g. systems development, hardware/software, user training, site preparation and data conversion.
Operating costs are costs that tend to recur throughout the lifetime of the system. E.g. maintenance, data storage expenses, communications expenses, software licenses. Such costs can be classified as:
Fixed costs – occur at regular intervals but at relatively fixed rates
– Variable costs – occur in proportion to some usage factor

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