Allocation During a Recession, or Any Kind Essay

Open, View, and/or
Download this Document

Total Length: 553 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Allocation

During a recession, or any kind of economic downturn, IT budgets come under close scrutiny. Organizations want to make sure that they are making the most of their money and IT investments are often among the first to be examined for potential cuts. Furthermore, the way that IT costs are allocated also makes a substantial difference because of the way different systems account for value. For example, under a traditional flat fee system, inefficiencies may be hidden and it can also negatively influence user behavior. This paper will look at some of the benefits and limitations in different accounting systems for IT services.

Flat Fee Structure

A flat fee structure is among the most common forms of IT allocation. The advantages of this system are that it is much simpler to work with. For example, bundling all of the fixed costs into one cost pool can make accounting and bid work much more efficient and less time consuming.

Stuck Writing Your "Allocation During a Recession, or Any Kind" Essay?

View All Our Example Allocation During a Recession, or Any Kind Essay

Have A Custom Example Essay Written

An IT group can allocate the costs that are completely visible to a particular project while distributing the shared or fixed costs by a flat fee measure (Branton, 2010). It has been argued that such an accounting system can reduce costs through its simplicity.

Proponents of such a system argue that more elaborate systems of charging for costs will never be clear cut and ultimately an accountant somewhere will have to make a judgment call about how best to allocate costs (Branton, 2010). Thus, since it will eventually be a matter of guesswork anyway, it is best to keep the costing system as simple as possible. This will not only save time with accounting work….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Allocation During A Recession Or Any Kind" (2012, April 28) Retrieved June 6, 2025, from
https://www.aceyourpaper.com/essays/allocation-during-recession-kind-79689

Latest MLA Format (8th edition)

Copy Reference
"Allocation During A Recession Or Any Kind" 28 April 2012. Web.6 June. 2025. <
https://www.aceyourpaper.com/essays/allocation-during-recession-kind-79689>

Latest Chicago Format (16th edition)

Copy Reference
"Allocation During A Recession Or Any Kind", 28 April 2012, Accessed.6 June. 2025,
https://www.aceyourpaper.com/essays/allocation-during-recession-kind-79689
   

Open, View, and/or
Download this Document
order custom essay example