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Activity-Based Costing Approach to IT Decision Making: A Case Study

NC4011, Subscription-Online

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The University of Virginia used its cost of services model (COSM), based on activity-based costing methodology, to build a financial case for discontinuing free dial-in computer service to the university community. In addition to utilization of the COSM tool, effective communication was critical in obtaining university community commitment to elimination of a service that had been in place since the early 1980s.

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