Learning Objectives
In Part 1 of this seminar, we discussed that the infrastructure of Information Technology (IT) is a capital-intensive facility whose primary purpose is to produce information. The specific information output may be different for each business, but in every industry the generically described output of IT is always information. In that sense, IT is an information factory.
All cost accounting (whether it be standard costing, job costing, activity-based costing (ABC) or others) has its roots in manufacturing. Until overhead became a larger portion of total manufacturing cost, ABC provided little incremental value over the traditional methodologies. This seminar (Part 2) will discuss viewing IT as a factory, with its own ever increasing overhead component, usage-based costing and ABC have tremendous applicability in IT organizations--especially when used as an integrated approach for IT chargebacks.
Program content
This seminar is Part 2 of a 2-part series that will explore IT as an information factory to explain the value of chargeback methodologies: usage-based costing for direct costs and ABC for overhead costs.
Participant level of understanding
This program is intended for participants with a basic or intermediate level of understanding on the topic.
Prerequisites:
There are no prerequisites for this seminar.
Advance Preparation
There is no advanced preparation required for this seminar.
About Sid Finehirsh and Rich Bilancia
Sid Finehirsh is CEO and founder of the CMX Group. Sid is a recognized authority on IT Chargeback, Usage-Based Costing, Capacity Planning, and Performance Measurement; he brings over 20 years of leadership experience to CMX Group. Mr. Finehirsh regularly presents at national and international conferences, including IT Financial Management Association, Computer Measurement Group, and SAS User Groups. He has authored various articles and paper for many publications, including Enterprise Systems Journal and IT Financial Forum.
Rich Bilancia is President and founder of Computer Guidance and Support, a CMX Business Partner. He is the former CIO and Vice President of Information Technology at CoorsTek, Inc. Rich is recognized nationally as an expert on Activity-Based Cost Management (ABCM) and computerized managerial accounting. He is a frequent speaker at industry conferences and has written over 60 articles for computer industry publications.
