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functional departments, o difference might exist between ISD's actual cosis incuried and the costs assigned to the five user departments. i. Explain the noture of
functional departments, o difference might exist between ISD's actual cosis incuried and the costs assigned to the five user departments. i. Explain the noture of this difference ii. Discuss whether this proposal by Jergens will improve cost control in ISD ii. Explain whether Jergens' proposed method of charging user departments for ISD costs will improve planning and control in the user departments AIP 8.7 Allocating Computer Costs The Independent Underwriters Insurance Co. IUI established a Systems Department two years ago to implement and operate its own information processing and storage systems. IUl believed that its own system would be more cost effective than the service bureau that it had been using. IUI's three departments - Claims, Records, and Finance - have different requirements with respect to hardwore and other capacity related resources ond operating resources. The system was designed to recognize these differing demands. In addition, the system was designed to functional departments, o difference might exist between ISD's actual cosis incuried and the costs assigned to the five user departments. i. Explain the noture of this difference ii. Discuss whether this proposal by Jergens will improve cost control in ISD ii. Explain whether Jergens' proposed method of charging user departments for ISD costs will improve planning and control in the user departments AIP 8.7 Allocating Computer Costs The Independent Underwriters Insurance Co. IUI established a Systems Department two years ago to implement and operate its own information processing and storage systems. IUl believed that its own system would be more cost effective than the service bureau that it had been using. IUI's three departments - Claims, Records, and Finance - have different requirements with respect to hardwore and other capacity related resources ond operating resources. The system was designed to recognize these differing demands. In addition, the system was designed to
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