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Glossary
Unit Cost

The cost of providing a single item. #FinancialManagement #CostModels #Costs


Glossary
Variable Costs

Costs that are based on usage or other variables, and may include office supplies, paper, etc. #CostModels #Costs #FinancialManagement


Glossary
Operating Costs

Expenses that provide no valued assets. See OpEx . #BusinessAlignment #FinancialManagement #CostModels #Costs


Glossary
Capital Expenditure (CapEx)

Investment in non-consumable assets, such as equipment. #BusinessAlignment #AssetManagement #ITSM #CostModels #Costs #FinancialManagement


Glossary
Opportunity Cost

A cost calculation that is used when deciding between investment choices. Opportunity cost represents the revenue that would have been generated by using the resources in a different way. For example, the opportunity cost of purchasing a new server may include the loss of interest that the money...


Glossary
Operating Expenses (OpEx)

Expenses that provide no valued assets to the enterprise, such as sales and administration (salaries). See also, CapEx #FinancialManagement #BusinessAlignment #Costs #CostModels


Glossary
Concurrent Users

The number of customers able to access a piece of software concurrently (i.e., at the same time). Determining the maximum number of expected concurrent users allows a company to purchase enough software licenses to cover the “peak” number of users, rather than one license for each employee. ...


Glossary
Allocation

An accounting method typically used to apportion a cost or expense based upon estimated usage or volume. For example, the cost of operating a service desk or support center is often allocated to its various customer groups based upon headcount, number of workstations, or service volumes. ...


Glossary
Activity-based Costing (ABC)

A form of cost accounting that focuses on the costs of performing specific functions (processes, activities, tasks, etc.), rather than on the costs of organizational units. Activity-based costing may generate more accurate cost and performance information related to specific products and...