12 Questions
Who is primarily responsible for the strategic decisions in the IT department, including the IT cost structure?
Chief Information Officer (CIO)
Which category of IT costs includes all expenditures associated with hiring, training, and retaining employees?
Staff costs
Which type of cost represents general operating expenses that have no direct relationship to the production or selling of goods and services?
Core costs
What is the purpose of categorizing line items in the budget tied to specific costs?
To help understand the key variables influencing costs
Who frequently collaborates with the Chief Information Officer (CIO) to prepare and finalize the IT budget?
Chief Financial Officer (CFO)
What type of assets do costs represent that are invested by a company to acquire or upgrade fixed, physical, non-consumable assets?
Physical assets
What is one way organizations can convert fixed IT costs into variable costs?
Adopting cloud technologies
Which of the following is an example of a fixed IT cost according to the text?
IT personnel salaries
What is the main advantage of converting fixed IT costs to variable costs through cloud technologies?
Provides an on-demand pricing model
Why are fixed IT costs generally considered long-term expenditures?
Because they don't change over time or only change slowly
What characterizes variable IT costs according to the text?
They change in the near term due to internal or external factors
Which of the following is an example of a variable IT cost based on the text?
Incremental hardware costs
Explore the strategic decisions involved in planning an effective IT cost structure, including long-term investments, budget categorization, and decision-making by the chief information officer (CIO). Learn about aligning proposals with the IT budget for sustainable business growth.
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