CAIV is based on the principle that the best time to reduce life cycle cost is early in which process?

• A. Design
• B. Operations
• C. Acquisition
• D. Production

Answer: (C)

CAIV treats cost as a design parameter from the start and uses it to drive decisions. The most effective time to curb life cycle cost is early in the acquisition process because the major cost drivers are defined during system design and architecture. Making cost a constraint early allows you to trade off performance, scope, and schedule before those choices become locked in. Once you move into production or operations, changing the design or core requirements becomes much more expensive and less capable of delivering large cost reductions. So, early in the acquisition process is where you gain the greatest leverage to reduce life cycle cost.