Cost accounting a network ‐ a case study Available to Purchase

Regardless of how they are budgeted, information technology (IT) costs must be paid. Most schools offer some computing services at no cost to the individual or unit and some that are charged back to users and units. Typically, common good services are centrally funded, and services that differentially benefit specific individuals or units are charged for. How services are funded often reflects a school’s philosophy about IT and about finances. Preferably, IT funding mechanisms deliberately help shape and influence an institution’s IT and services philosophy, as opposed to an IT or service philosophy being unintentionally shaped by fiscal policies that follow no particular strategy. Levying fees to users on an individual or departmental basis may yield a different demand and expectation of IT services than when costs are borne by a central budget. Quantity and quality, degree of centralization, and administrative complexity of services are major variables in determining funding. Also at stake is the degree to which an institution wishes to endorse, suppress, control or expand IT services. These issues are specifically illustrated through a case study of the formulation of a new budget and cost accounting model to both finance an institution‐wide network upgrade and to maintain that network.