Which statement is true about cost avoidance savings identified at pre-programming?

• A. Only maintenance costs
• B. The entire life-cycle of program costs
• C. Initial setup costs only
• D. Ongoing operating costs

Answer: (B)

Cost avoidance savings identified at pre-programming reflect the potential to cut costs across the entire life cycle of a program. At this stage, analysts look at how a decision will impact all future costs—from development and procurement through operations, maintenance, and eventual disposal. Since avoidance means not incurring costs in the future, the savings are not limited to just initial setup, ongoing operations, or maintenance alone; they apply to the total lifecycle. Therefore, the best description is that pre-programming cost avoidance covers the entire life-cycle of program costs.