A Finance Director tells you that the company will begin to implement a "chargeback approach" on January 1 of next year. What approach would make it easiest for you to directly align user department…

Question

Options

• AFlat rate pricing
• BProgressive price list with discounts for volume and pre-purchase
• CCloud-typecost model based on resource consumption
• DPricing based on service level agreement mainly driven by number of outage minutes per

• A
  11% (6)
• B
  4% (2)
• C
  83% (44)
• D
  2% (1)

Explanation

A cloud-type cost model based on resource consumption (C) is the best fit for a chargeback approach because it directly ties what each user department actually uses to what the IT department actually pays - if a department consumes more storage, compute, or bandwidth, their charge reflects that proportionally, creating a clean 1:1 alignment.

Why the others fall short:

• A (Flat rate) spreads costs evenly regardless of usage, so heavy users subsidize light users - no direct alignment.
• B (Progressive price list with volume discounts) introduces complexity and incentive-based pricing that distorts the true cost relationship between consumption and charge.
• D (SLA/outage-based pricing) ties cost to service quality metrics rather than resource consumption, which measures performance accountability, not cost allocation.

Memory tip: Think of it like a utility bill - you pay for exactly the electricity you use. A chargeback model should work the same way: consumption drives the invoice. "Cloud-type" = "meter-based" = direct cost alignment.

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