Pricing and the allocation of data processing resources
Habermann, William Frank
Brown, Gerald G.
Parry, Samuel H.
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This thesis outlines the growing financial commitment by organizations to provide data processing services. The supply and demand characteristics of computers and microeconomics, pricing and accounting theories are reviewed in relation to resource allocation . The impact of no charge back and charge-back policies on computer utilization are discussed in depth. Pricing goals--cost recovery and/or resource allocation, pricing principles and pricing structure--length of costing period, selecting resources to be priced and quality of service are also investigated in depth. Suggested resource utilization measures are included in the Appendices. The advantages and disadvantages of average cost, flat rate and flexible pricing charge-back techniques are critically examined. Several examples of charge-back techniques utilized by commercial, educational and military organizations are presented. A time phased implementation plan of a charge-back system, beginning with average cost followed by flexible pricing, is recommended. A bibliography is included.
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