…,”at this point in the feasbility study the costs associated with the proposed system will be clearer. The costs will be divided into two categories- establishment costs and ongoing costs. Establishment costs are those associated with the actual creation of the system. This would include all development costs, hardware purchases and the like. The establishment are one off costs and will not be repeated during the life of the system. On going costs are the costs that will be face each year in the running system. On going ccosts are the costs that will be palaced each year in the runnning system. It includes the human resources costs, system conumables cost and the like. The ongoing costs must be low enough to justify the development of the system. There is no point developing a new system to perform a job is current systme does it cheaper- unless there is some overwelming need for change. The establishment costs will be incurred inthe initial setting up of the system
however they will usually be viewed over the anticipated life of the system.”