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  • 1.  Business Software - Labor or Not?

    Posted Mon August 12, 2019 11:51 AM

    Should the sub-tower of Business Software included labor expenses or should internal labor that is used to install, deploy and support 3rd party software be allocated to the sub-tower(s) of Application Development and/or Application Support and Operations?

     

    Using Business Software's definition: software expenditures including licensing, maintenance and support related to off-the-shell software purchases. 

     

    I'm questioning "maintenance and support"; is this my company providing internal labor or is it the vendor providing services as defined in the contract?

     

    Thanks!




    #CostingStandard(CT-Foundation)


  • 2.  Re: Business Software - Labor or Not?

    Posted Wed August 14, 2019 10:50 AM

    Hi @danielle mollric,

     

    You would include software-related cost into Business Software sub-tower and then anything Internal Labor related that is supporting that application would go to App Support and Ops and then they will all roll up to the same App at the Apps & Services level. 

     

    Thanks,

     

    Gulcin


    #CostingStandard(CT-Foundation)


  • 3.  Re: Business Software - Labor or Not?

    Posted Thu August 15, 2019 08:51 AM

    Thank you very much.  I'm finding it challenging to accurately allocate expenses when a sub-tower isn't included within Benchmarking.  The additional insight available within "IT Tower and Cost Pool Definition Guide" is fabulous, it's just not available for all sub-towers.  So once again, thank you!!!


    #CostingStandard(CT-Foundation)