Recurring specific costs are for items such as hardware and software maintenance, monthly charges for leased communications lines, software support charges, etc. Many of these cost elements are fixed over the life of the equipment. Others can be escalated. Maximum escalation factors should be used. Recurring Variable Costs.
Variable costs are usually the single largest element of cost in the equation.
When purchasing a system, a number of choices must be made. Site visits are more easily arranged and claims of various vendors can be more easily verified. In order to maximize your performance, the ultimate decision as to which hardware to choose is usually based on what software is available on an industrywide basis. The choice of software alternatives should be based on what package will answer the basic needs of your company and require only a moderate amount of customization. This will therefore reduce the need for a substantial amount of costly and time consuming customization.