Business Commons^™

Cost Driver Based Internal It Cost Allocation: A Case Of A Medium-Sized Austrian Financial Service Provider, Andrea Schnabl

UBT International Conference

IT has a high share of the total costs at information processing companies. Though not only minimal IT costs are relevant, but also effective use of IT from the long term business perspective. Decisions on IT investments are made based on information about costs and benefits commonly provided by controlling in-struments. To identify direct and indirect costs of IT services, an internal IT cost allocation (IT activity allocation or IT chargeback) is being used by the vast ma-jority of companies, especially in IT-related industries. The allocation of shared IT infrastructures and overhead costs to IT services, as well as of …