Exam 7: The IT Budgeting Process

In accounting, ________ cover the annual cost of running the business.

Between 50 and 90 percent of a firm's IT budget is spent on:

Studies have shown that organizations that rigidly adhere to the ideals of their budget process will experience a decrease in competitive advantage because of the resulting negative influence on innovation and flexibility.

List and describe (3) common budgeting problems many organizations encounter.

Budgets are a key component of corporate performance management.

In many organizations, IT Budgeting is a very negative process.

The ________ establishes what IT expenses can be capitalized.

List and describe (3) corporate activities that set the context within which IT plans and budgets are created.

Capital expenses appear to be more carefully scrutinized than tactical expenses.

All IT organizations want to capitalize as much of their spending as possible because it makes their annual costs look smaller.

There are significant difficulties with IT budgeting, but most IT managers feel the work involved is worthwhile and satisfying.

How can budget issues affect IT strategy implementation?

In many organizations, the budget process has become slow and expensive but is still connected to business objectives.

List and describe two reasons why effective IT budgeting is important for an organization.

Fiscal IT budgets are prepared for the:

The concepts and practices of the corporate finance bear little similarity to how IT actually works.

Current IT budgeting practice approaches do little to give business leaders confidence that IT spending is both effective and efficient.

Present-day annual fixed plans and budgets were established in the ________ to drive performance improvements.

List and describe (3) IT budgeting practices that can make the IT budgeting process more effective.

________ are multilevel and complex and frequently occur in parallel with each other.