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ERIC Number: ED061969
Record Type: Non-Journal
Publication Date: 1972
Pages: 25
Abstractor: N/A
Reference Count: N/A
Real Costs for Information Managers.
Price, Douglas S.
Management of an information function requires detailed knowledge of what is being spent, how it is spent, and what is received in return for the money. Simply knowing whether a profit has been made or a loss suffered, and even knowing how expenditures were distributed, is not enough information for management. Building block cost analysis is designed to provide the information system manager with precisely the information he needs to manage. This theory is based upon two premises. First, the most effective display of information systems costs is in terms of unit costs. One production count, however, is not a useful measure of an entire information system. The system must be broken down into subunits which can be unit costed, and then added together for the total cost. Second, unit costs are meaningful only in a framework which includes all costs of the system. The example used to illustrate building block cost analysis is an information activity which collects a series of reports, prepares surrogates, enters them into a computer system, and produces a monthly abstract journal. (Author/SJ)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A