1B3A ALBERT HATHAWAY RECENTLY JOINED BRANNEN UNIVERSITY AS THE CHIEF...

136. CSO: 1B3b LOS: 1B3a

Albert Hathaway recently joined Brannen University as the chief information officer of

the University Computing Services Department. His assigned task is to help reduce the

recurrent problem of cost overruns due to uncontrolled computer usage by the user

community, while at the same time not curtailing the use of information technology for

research and teaching. To ensure goal congruence, which one of the following

algorithms should be used to allocate the cost of the University Computing Services

Department to other departments within the university?

a. Actual rate times actual hours of computer usage.

b. Actual rate times budgeted hours of computer usage.

c. Budgeted rate times actual hours of computer usage.

d. Budgeted rate times budgeted hours of computer usage.