Software Engineering (10th Edition)
Software Engineering (10th Edition)
10th Edition
ISBN: 9780133943030
Author: Ian Sommerville
Publisher: PEARSON
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Chapter 23, Problem 23.1E

Explanation of Solution

Circumstances:

The circumstances where a company might charge higher price for a software system are as follows:

  • When the customer is not having any alternative, the ethics of excessive pricing is considered in this situation.
  • Where the customers has special requirements like rapid delivery.
  • When the customer wants the developer to take a considerable amount of project risk.
  • When the work is not central to the company’s business and if it diverts people from other business focused activities.
  • The organization can make a great profit later by accepting a low profit on one project first.
  • When the customers demand for the complete source code for future maintenance, the organization needs to charge a significant amount.

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