Total Cost of Ownership (TCO) and ROI Calculation for Blockchain Use Cases BFC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which of the following is an example of an indirect cost in a blockchain deployment?

   • ATraining costs for staff to learn blockchain technology
   • BCost of purchasing server hardware for nodes
   • CCloud subscription fees for hosting the blockchain network
   • DSalaries of blockchain developers
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   How do TCO and ROI differ in their primary focus?

   • ATCO measures the payback period, while ROI measures the total cost
   • BTCO is used only for initial investment, while ROI is used for ongoing costs
   • CTCO focuses on costs, while ROI focuses on profitability relative to those costs
   • DTCO focuses on benefits, while ROI focuses on costs
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   A blockchain project has the following costs over a 3-year period: Year 1: $30,000 (development), Year 2: $15,000 (operations), Year 3: $15,000 (operations). Additionally, there is a one-time training cost of $5,000 in Year 1. What is the total cost of ownership?

   • A$70,000
   • B$65,000
   • C$60,000
   • D$75,000
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   Why is ROI important when evaluating a blockchain project?

   • AIt measures the technical performance of the blockchain consensus algorithm
   • BIt helps compare the profitability of the project against alternative investments
   • CIt calculates the total cost of ownership of the blockchain network
   • DIt determines the exact number of tokens to be issued
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A government agency is preparing a budget proposal for a blockchain-based land registry. The project sponsor insists on including only the purchase price of software and hardware. Why is this approach insufficient for a TCO analysis?

   • ATCO is the same as ROI and therefore must include benefits
   • BTCO should only include costs that appear on the project's invoice
   • CTCO must also include ongoing operational costs such as maintenance, personnel, and training
   • DTCO is only relevant for cloud-based systems, not on-premises deployments
   Reveal Solution Discussion Select an answer first