Question

If technical debt is not on the financial sheets, where should it be recorded? And if it does not appear on financial statements, will upper management even know that it exists? And Does the EBV add value to the project? Or are the other calculations sufficient to justify the project? Must contain 300 words or more.

Answer 1

Technical debt is a concept in programming that reflects the extra development work that arises when code that is easy to implement in the short run is used instead of applying the best overall solution.

Technical debt is commonly associated with extreme programming, especially in the context of refactoring. That is, it implies that restructuring existing code (refactoring) is required as part of the development process. Under this line of thinking refactoring is not only a result of poorly written code, but is also done based on an evolving understanding of a problem and the best way to solve that problem.

Like monetary debt, technical debt can accumulate “interest”. In this concept, the interest is the increasing difficulty it can be to implement changes later on, especially as a software project dominoes through multiple phases. The longer technical debt is ignored or unaddressed, software entropy can occur.

Instead, the debt is incurred when IT chooses to delay better coding and building internal pieces that should be there, for various reasons. But this choice to ignore certain pieces is understood that it will impede future development and delivery if left undone – and if the team doesn’t go back to resolve the mediocre code or address known bugs, the result is the cumulative interest.