Which of the following statements regarding software acquisition (purchase vs. in-house development) is false?
A) software developed in house can cost 10 times more than purchased software
B) when a suitable software package is available for purchase, it is better to buy it rather than try to reinvent it in-house
C) the annual maintenance of in-house software is typically 25% of the development cost, whereas the annual maintenance of purchased software is typically 50% of the purchase price
D) none of the statements are false

Question

Quizplus · Accepted Answer

The statement that the annual maintenance of in-house software is typically 25% of the development cost, whereas the annual maintenance of purchased software is typically 50% of the purchase price is false. In reality, the maintenance costs can vary widely and are not always based on a fixed percentage of development or purchase price. However, the other statements are true -- software developed in-house can be more expensive, and it is often better to buy existing software rather than building it from scratch.

Which of the Following Statements Regarding Software Acquisition (Purchase Vs