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See below table and fix actual cost based on the information provided. The purpose of this assignment is to understand the IT budgeting process, analyze

See below table and fix actual cost based on the information provided. The purpose of this assignment is to understand the IT budgeting process, analyze the result and explain the variance between the budget and the actual results.

 

Review the "IT Budget 

 

Part 1: Existing IT Budget

Review the existing IT budget presented on the "IT Budget" spreadsheet and answer the following questions in an outline:

  • Why is it important to do an IT budget?
  • What are some key takeaways from this budget example?
  • What types of details seem to be missing from this budget?
  • What is the purpose of the internal charge-back and how would you communicate this to those receiving the charge?
  • If your leadership team asked you to cut your budget by 5%, what steps would you take?
  • What types of backup information you would need to support your budget process?

Part 2: Actual IT Cost

Using the following assumptions, complete the Actual Cost 2021 results (the highlighted portion of the "IT Budget" spreadsheet).

  • Your new project was $5k over plan, but it was started midyear instead of starting January 1st.
  • Your existing staff was required to do unplanned regulatory training costing $2,000.
  • You were only able to replace 10 servers instead of 12.
  • You had a 10% overrun on your implementation costs for new projects.

Part 3: Summary of Actual vs. Budget

In your outline document, summarize the actual vs. budget comparison, including comments about considerations for your IT budget for the next year, given this years' results.

General Requirements


This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Benchmark Information:

This benchmark assignment assesses the following programmatic competencies:

MS Information Technology Management

4.2: Interpret financial and accounting information to manage information technology budgeting processes.

Attachments





















Topic 6






2 GOAL, Inc. IT Budget





3
Annual Budget 2021 Comments
Actual Cost 2021 Variance
4 Committed Expenditures





5 Service Contracts 50,000


50,000
6 Repairs 5,000


5,000
7 Leases 15,000


15,000
8 Software 20,000


20,000
9 Internal Support 40,000


40,000
10 External Support 23,000


23,000
11 Depreciation 13,500


13,500
12 Supplies 400


400
13 Training 2,000


2,000
14 TOTAL COMMITED EXPENDITURES 168,900

- 168,900
15






16 Upgrades





17 CPU Upgrades 4,220


4,220
18 Memory Addition 5,000


5,000
19 TOTAL UPGRADES 9,220

- 9,220
20






21 Replacements





22 Depreciation 4,000 12 servers @ $1,000 each depreciated over 3 years
- 4,000
23 Implementation Costs 3,200


3,200
24 Leases 3,000


3,000
25 TOTAL REPLACEMENTS 10,200

- 10,200
26




-
27 New Projects



-
28 Capital Cost of New Hardware



-
29 Depreciation 5,000 1 server @ $20,000 depreciated over 4 years
- 5,000
30 Implementation Costs 3,200


3,200
31 Leases 3,000


3,000
32 Internal Support 20,000


20,000
33 TOTAL NEW PROJECTS 31,200

- 31,200
34




-
35 TOTAL COSTS 219,520

- 219,520
36




-
37 Internal charge-back



-
38 Department A (25% utilization) -54,880

- -54,880
39 Department A (25% utilization) -109,760

- -109,760
40 Department A (50% utilization) -54,880

- -54,880
41
-219,520

- -219,520
42






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