It Is Determined That a Mobile Application Needed to Support

question 53

Essay

It is determined that a mobile application needed to support the Sales, Marketing and Finance departments will cost $60,000. The Sales department has 20 employees and all employees will need the application. Likewise, all 10 of the Marketing department employees will need the application. Only 1/3 of the Finance department is interested in the mobile application. The Finance department has 30 employees. The CIO has decided to fund the mobile application using either the allocation method or chargeback method.
Which funding method does each department wish the CIO will choose to use and why?

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant in an analytical context.

Law Of Demand

The economic principle that states there is an inverse relationship between the price of a good or service and the quantity demanded, ceteris paribus.

Entertainment Tax

A tax imposed on services related to entertainment, such as movie tickets, shows, and sporting events, typically to raise revenue for local or national governments.

Streaming Movies

The process of watching films over the internet without downloading them, provided by various online platforms.