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public:99_annexes:annex-b-terms-and-definitions:c:cost [2026/09/12 17:42] – removed - external edit (Unknown date) 127.0.0.1public:99_annexes:annex-b-terms-and-definitions:c:cost [2026/09/12 17:43] (current) – ↷ Links adapted because of a move operation nick_dido
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 +====== Cost ======
  
 +[[public:99_annexes:annex-b-terms-and-definitions:start|Go up to Terms and Definitions]]
 +
 +===== Discussion =====
 +
 +Cost is an [[public:99_annexes:annex-b-terms-and-definitions:e:evaluation_characteristic|Evaluation Characteristic]] concerning the value of Resources required, consumed, committed, or foregone for a specified subject, activity, or outcome.
 +
 +Cost can apply to:
 +
 +  * A [[public:99_annexes:annex-b-terms-and-definitions:c:candidate_solution|Candidate Solution]]
 +  * A [[public:99_annexes:annex-b-terms-and-definitions:d:distributed_system|Distributed System]]
 +  * A [[public:99_annexes:annex-b-terms-and-definitions:n:node|Node]]
 +  * A Qualified Node
 +  * A [[public:99_annexes:annex-b-terms-and-definitions:n:node_set|Node Set]]
 +  * A service
 +  * A product
 +  * A deployment
 +  * A maintenance activity
 +  * A [[public:99_annexes:annex-b-terms-and-definitions:t:test_run|Test Run]]
 +  * A transition
 +  * An operation
 +  * An acquisition
 +  * Another subject, activity, or outcome having an assigned value
 +
 +Cost can include:
 +
 +  * Acquisition cost
 +  * Licensing cost
 +  * Development cost
 +  * Integration cost
 +  * Deployment cost
 +  * Infrastructure cost
 +  * Operating cost
 +  * Storage cost
 +  * Energy cost
 +  * Communication cost
 +  * Maintenance cost
 +  * Support cost
 +  * Training cost
 +  * Migration cost
 +  * Transition cost
 +  * Recovery cost
 +  * Compliance cost
 +  * Decommissioning cost
 +  * Disposal cost
 +  * Opportunity cost
 +  * Another cost category established by the [[public:99_annexes:annex-b-terms-and-definitions:a:acceptance_criteria|Acceptance Criteria]]
 +
 +Cost can identify:
 +
 +  * The evaluated subject
 +  * The specified activity or outcome
 +  * The cost category
 +  * The included Resources
 +  * The excluded Resources
 +  * The applicable time period
 +  * The applicable jurisdiction
 +  * The applicable currency
 +  * The applicable valuation date
 +  * The applicable price source
 +  * The applicable discount rate
 +  * The applicable allocation method
 +  * The applicable normalization method
 +  * The applicable assumptions
 +  * The applicable uncertainty
 +  * The applicable DIDO [[public:99_annexes:annex-b-terms-and-definitions:b:baseline|Baseline]]
 +  * The applicable [[public:99_annexes:annex-b-terms-and-definitions:v:validation_criteria|Validation Criteria]]
 +  * The applicable Acceptance Criteria
 +  * Its [[public:99_annexes:annex-b-terms-and-definitions:e:evidence|Evidence]]
 +  * Its [[public:99_annexes:annex-b-terms-and-definitions:p:provenance|Provenance]]
 +  * Its [[public:99_annexes:annex-b-terms-and-definitions:t:traceability|Traceability]]
 +
 +Cost can be expressed as:
 +
 +  * Total cost
 +  * Initial cost
 +  * Recurring cost
 +  * Fixed cost
 +  * Variable cost
 +  * Marginal cost
 +  * Cost per transaction
 +  * Cost per Test Run
 +  * Cost per Node
 +  * Cost per User
 +  * Cost per unit of time
 +  * Cost per unit of completed work
 +  * Lifecycle cost
 +  * Another value established by the Acceptance Criteria
 +
 +===== Definition =====
 +
 +//[[public:99_annexes:annex-b-terms-and-definitions:e:evaluation_characteristic|Evaluation Characteristic]] concerning the value of Resources required, consumed, committed, or foregone for a specified subject, activity, or outcome//
 +
 +===== Source =====
 +
 +Adapted from:
 +
 +  * [[public:99_annexes:annex-b-terms-and-definitions:e:evaluation_characteristic|Evaluation Characteristic]]
 +  * [[public:99_annexes:annex-b-terms-and-definitions:r:resource|Resource]]
 +  * [[public:99_annexes:annex-b-terms-and-definitions:r:resource_consumption|Resource Consumption]]
 +  * Financial Systems Archetype, Part 7: Governed Node Service Market
 +  * DIDO Reference Implementation Conceptual Model
 +  * DIDO-TE draft Requirements Register
 +  * DIDO-TE Broad Agency Announcement source material
 +
 +===== Note =====
 +
 +Cost differs from price:
 +
 +  * Cost concerns the value of Resources required, consumed, committed, or foregone
 +  * Price identifies an amount requested or paid in an exchange
 +
 +Price can contribute to Cost but does not necessarily represent total Cost.
 +
 +Cost differs from [[public:99_annexes:annex-b-terms-and-definitions:r:resource_consumption|Resource Consumption]]:
 +
 +  * Resource Consumption identifies the amount of a Resource used
 +  * Cost assigns a value to Resources required, consumed, committed, or foregone
 +
 +Two Candidate Solutions can consume equivalent Resources but have different Cost because of differences in:
 +
 +  * Prices
 +  * Licensing
 +  * Jurisdiction
 +  * Allocation methods
 +  * Support arrangements
 +  * Contract terms
 +  * Valuation dates
 +
 +Lower Cost does not necessarily indicate a preferable Candidate Solution. The lower-Cost Candidate Solution can have lower:
 +
 +  * Functional Correctness
 +  * Performance Efficiency
 +  * Reliability
 +  * Security
 +  * Interoperability
 +  * Scalability
 +  * Maintainability
 +  * Recoverability
 +
 +A Cost comparison must identify its boundary. Statements such as **lower cost** or **cost effective** are not objectively verifiable without identifying:
 +
 +  * The included Cost categories
 +  * The excluded Cost categories
 +  * The evaluation period
 +  * The currency
 +  * The valuation method
 +  * The normalization method
 +  * The comparison reference
 +
 +Estimated Cost should be distinguishable from measured, incurred, invoiced, or paid Cost.
 +
 +===== Example =====
 +
 +DIDO-TE evaluates three Candidate Solutions over a projected five-year operational period.
 +
 +The Acceptance Criteria include:
 +
 +  * Acquisition cost
 +  * Licensing cost
 +  * Deployment cost
 +  * Infrastructure cost
 +  * Energy cost
 +  * Storage cost
 +  * Maintenance cost
 +  * Support cost
 +  * Decommissioning cost
 +
 +The Acceptance Criteria establish the currency, valuation date, discount rate, workload, and allocation method.
 +
 +DIDO-TE associates measured Resource Consumption with the applicable price information and records each Cost assumption.
 +
 +The comparative evaluation reports total and per-transaction Cost for each Candidate Solution while preserving Evidence, Provenance, and Traceability.
 +
 +----
 +
 +<WRAP centeralign>
 +© 2026 Dido Solutions, Inc. and Jackrabbit Consulting, Inc.
 +</WRAP>