AFM241 Chapter Notes - Chapter 9: Net Present Value, Chargeback, It Portfolio Management

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: all

Document Summary

Budget: reflects how organizations allocate financial resources to different units, based on the planned activities and the short term objective of each unit. Budgets provide a way of communicating the firm"s short -term financial goals to its member. However, rigid adherence can stifle innovation and limit agility. It budgets: the management planning of it resources. The budget should include hardware, software, personnel, outsourci ng, disaster recovery, and occupancy costs: Hardware costs: includes all current equipment costs plus any planned hardware purchases, as well as maintenance fees. Software costs: includes all current software costs plus any planned software purchases, as well as support and maintenance fees for infrastructure software and applications. It management personnel, it-related human resources, as well as non -employees who perform tasks under contract. Outsourcing costs: includes costs associated with external it services, consulting, system integration, and data and voice transmission. Disaster recovery costs: includes all costs associated with backup, disaster recovery, and business continuity systems.