If savings identified during an audit are cost avoidance pre-programming, which portion of program costs may be claimed?

If savings identified during an audit are cost avoidance pre-programming, which portion of program costs may be claimed?

• A. The entire life-cycle of program costs
• B. Only development costs
• C. Only maintenance costs
• D. Only post-implementation costs

Answer: (A)

Savings identified during an audit as cost avoidance from pre-programming reflect reductions in future costs across the entire program’s life cycle. When you plan and analyze options before a program starts, the chosen approach can lower or eliminate costs in development, deployment, operation, maintenance, and post-implementation phases. Because the cost avoidance affects the total expected cost over the program’s life, you may claim the entire life-cycle portion of program costs as avoided. This broader view captures the full impact of the pre-programming decision rather than confining the savings to a single phase.

Savings identified during an audit as cost avoidance from pre-programming reflect reductions in future costs across the entire program’s life cycle. When you plan and analyze options before a program starts, the chosen approach can lower or eliminate costs in development, deployment, operation, maintenance, and post-implementation phases. Because the cost avoidance affects the total expected cost over the program’s life, you may claim the entire life-cycle portion of program costs as avoided. This broader view captures the full impact of the pre-programming decision rather than confining the savings to a single phase.