When is chargeback, when using private cloud infrastructure in a large company, helpful to an organization?

Question

Options

• AWhen the company wants to allocate cost to a specific department.
• BWhen the company needs to capitalize their cloud computing costs
• CWhen the company needs a line of credit for a set amount of resources short term.
• DWhen the company wants to charge the service provider for unused resources.

• A
  2% (1)
• B
  7% (4)
• C
  89% (48)
• D
  2% (1)

Explanation

In a private cloud, chargeback is a financial accountability model where IT acts as an internal service provider, issuing departments a pre-approved 'line of credit' for a defined amount of cloud resources. This is most valuable when a team needs guaranteed, budgeted access to a specific quantity of resources for a short-term project or workload spike. The chargeback system both reserves those resources and holds the department financially accountable for actual consumption. This is distinct from simple cost visibility (showback), which only reports spending without reserving resources or enforcing financial commitment. Options A and D describe cost allocation and reverse penalty clauses, respectively, which are separate financial mechanisms.

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