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The only advantage of software reuse is cost reduction, but there is significant cost associated with whether or not a component is suitable for reuse in a particular situation and testing that component. These savings are more-or-less proportional to the component size: the larger the component, the greater the cost saving.

However, one must consider the new costs associated with reuse like the costs of finding and understanding the component which is used for reuse and also the costs of modifying other parts of system to provide room for the reused components. These savings do not scale with the size of the component. For small components, the savings may be very less or even expensive. Software reuse is most effective when it is used as a large component.

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