Certified Systems Engineering Professional Csep · Free Practice Question Easy
Question 46
[ID-5020] Choose the right option regarding Life Cycle Costs (LCC):
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A
When performing LCC analysis, the parametric method compares the proposed system with one or more similar ones.
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B
Life Cycle Cost (LCC) and Total Cost of Ownership (TCO) are the same thing.
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C
Development costs tend to be higher than production costs.
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D
Top down, bottom up and expert judgment are LLC analysis methods.
Reveal correct answer
Correct answer: D
A.
The analogy (not parametric) method involves comparing the proposed system with one or more similar systems to estimate costs and benefits. This method helps in making informed decisions based on past experiences and existing systems. See INCOSE SE Handbook 5th Ed., section 3.1.2., p.165.
B.
LCC includes all costs incurred through the system's life cycle while TCO may only include costs related to the period after purchasing/realizing the system. See INCOSE SE Handbook 5th Ed., section 3.1.2., p.164.
C.
It's way more common to observe the other way around. See INCOSE SE Handbook 5th Ed., section 3.1.2.,Figure 3.4., p.164.
D.
The three of them are indeed LCC analysis methods. See INCOSE SE Handbook 5th Ed., section 3.1.2., p.165.
Discussion
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