Introduction to the Cost of Prototyping
For prototyping of requirement analysis its cost must be kept low. Consequently, only those features that will have a valuable return from the user experience are included in the prototype. To reduce the cost the following features should be concerned.
Exception handling recovery conformance to some standards and formats are typically not included in prototypes.
Because the prototype is to be throwaway, only minimal development documents need to be produced during prototyping for example design documents a test plan and a test case specification are not needed during the development of the prototype.
Another important cost cutting measure is reduced testing. Testing consumes a major part of development expenditure during regular software development. By using cost cutting methods, it possible to keep the cost prototyping to less than a few percent of the total development cost.
The cost of developing and running a prototyping can be around 10% of the total development cost. However it should be pointed out that if the cost of prototyping is 10% of the total development cost, it does not mean that the cost of development has increased by this amount. The main reason is that the benefits obtained due to the use of prototype in terms of reduced requirements errors and reduced volume of requirements changes request are likely to be substantial there reducing the cost of development itself.
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In Market Based Pricing - the transfer price will be ascertained as per to the market price prevailing in the market.
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