Question 114 - You are a Product Owner who is also responsible for monitoring the TCO (Total Cost of Ownership). What are the costs that can influence the TCO of the product being built? (choose the best answer)

  • The financial funding of product development, where each Sprint has a fixed cost.

  • The accrued cost compared to the value generated by the product.

  • All the investments (conception, development, operation and maintenance) to be made in the product.

Overall explanation

  • The Product Owner is in charge of monitoring the TCO (Total Cost of Ownership) and this entails contemplating all the investments (conception, development, operation and maintenance) to be made in the product.
  • For example, quality impacts the TCO and life expectancy of a product.
  • Getting software out of the door quickly with poor quality may achieve a short-term win but it incurs technical debt.
  • The software becomes difficult to extend and maintain.
  • This results in high cost and long lead times for new functionality.
  • And software with poor quality often has to be replaced sooner rather then later resulting in a short life expectancy and a poor return on investment.
  • A Product Owner is ultimately concerned with Maximizing Return On Investment (ROI), optimizing Total Cost of Ownership (TCO), and capitalizing on product Agility