COMPUTER SYSTEM MANAGEMENT: A MACRO PLANNING COST ALLOCATION PROCEDURE.

The problems of allocating costs of a computer system are discussed, and a procedure is presented to solve these problems. A rational approach to planning and cost allocation of computer facilities is developed in the concept of a Responsibility Center. By such a scheme, users of a computer facility are influenced to adjust their demands for processing to a level most beneficial to the overall organization in question. The developed cost allocation formula provides a rational way to distribute costs; it allocates greater costs to the user whose alternative costs are greater.