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25 Cards in this Set
- Front
- Back
What are the 3 main processes of financial management?
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*budgeting
*IT accounting *charging |
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What are the benefits of financial management?
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*organization will make sound IT investments
*increased confidence in setting & managing budgets *balance between quantity of IT services and customer resources/needs |
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What is budgeting?
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predicting and controlling expenditures
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What is IT accounting?
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tracking how much money is spent
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What is charging?
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billing the customer for services rendered
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What cost types are associated with financial management?
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*hardware
*software *people *accommodation *external services *transfer |
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What are the cost classifications of financial management?
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*direct costs
*indirect costs *fixed costs *variable costs *operational costs *capital costs |
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What are the 3 methods of assessing depreciation?
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*reducing-balance method (% decrease/year)
*straight-line method (equal amount written off/year) *by-usage method |
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What are the 3 methods of charging?
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*differential: rewards particular usage patterns
*notional: bills & invoices supplied without actual charges *full: recovers full revenue |
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What are 4 factors to consider with budgeting?
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*level of expenditure required
*desire to influence customer & user behavior *ability to recover costs according to usage *control of internal market |
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What is pricing?
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setting agreed-upon rates for charging customers
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What is charging?
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billing customers for delivered services
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What are the 5 pricing methods?
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*cost
*cost-plus *going rate *market price *fixed price |
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What budgeting output goes to IT managers?
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budget conformance information
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How does budgeting interact with customers?
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It assists customers in preparing budgets
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What accounting output goes to senior management?
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IT cost effectiveness data
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What are the responsibilities of accounting?
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*advise senior management on IT cost-effectiveness
*defines cost elements *selects tools & processes for gathering cost data *agrees on accounting policies |
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What 3 groups does IT financial management have close relations with?
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*service level management
*capacity management *configuration management |
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What are 4 problems associated with implementing financial management?
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*lack of management commitment
*difficulty quantifying indirect costs *dependence on other ITSM processes *finding a skilled finance manager *lack of cost documentation |
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What are the 2 main costs of iplementing financial management?
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*tools
*administration & organization |
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What 3 services does security management provide?
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*confidentiality
*integrity *availability |
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What are the 2 objectives of security management?
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*meet security requirements of SLA's
*meet internal security requirements |
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What 3 processes interact closely with security management?
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*service level management
*availability management *service continuity |
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What are 3 common problems with security management?
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*lack of commitment
*lack of communication *lack of due diligence |
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What are 3 common costs of security management?
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*personnel
*maintenence *failure to secure IT infrastructure |