Managing and Using Information Systems Ch. 10

Managing and Using - Managing and Using Information Systems Ch 10 Funding IT Ways of funding the IT department and an exploration of several ways

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Managing and Using Information Systems Ch. 10 – Funding IT Ways of funding the IT department and an exploration of several ways to calculate the cost of IT investments. FUNDING THE IT DEPARTMENT – THREE MAIN FUNDING METHODS 1. With a chargeback funding method, IT costs are recovered by charging individuals, departments, or business units based on actual usage and cost. 2. An allocation funding method recovers costs based on something other than usage, such as revenues, login accounts, or number of employees. 3. With the corporate budget funding method, the costs fall to the corporate bottom line, rather than levying charges on specific users or business units. HOW MUCH DOES IT COST? The most basic method for calculating the costs of a system is to add up the costs of all the components, including hardware, software, network, and the people involved. Activity-based costing. Another method for calculating costs is known as activity-based costing (ABC). Activity-based costing counts the actual activities that go into making a
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This note was uploaded on 11/13/2010 for the course BUSINESS M BIS/219 taught by Professor Markbentcover during the Spring '10 term at University of Phoenix.

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Managing and Using - Managing and Using Information Systems Ch 10 Funding IT Ways of funding the IT department and an exploration of several ways

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