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Cost Recovery

This process provides a cost-accounting framework that maps the costs of components and other resources to drivers and customers.



Develop cost centers and rates for 100% cost recovery

Define processes/procedures for submitting forecasts

Develop financial models to perform what-if rate scenarios

Abide by generally accepted cost-accounting principles

Utilize costing metrics

Infrastructure knowledge

Financial planning and cost management


Automation Technology

Charge-back specialist

Budget analyst

Cost accounting specialist

Automated utilization collection systems (such as CA, Merrill Associates, Komand)

Charge-back tools (such as Komand, CA, IBM)

Best Practices


Deployment of fully automated cost-recovery and rate-generation system

Use of charge-back pricing methods with the following attributes:

Understandable to users

Predictable for planning purposes

Related to value received

Priced competitively with open market services

Use of one of the two models common today within user organizations:

– Central pool allocated back to LOBs based upon revenue or employees

– Usage-based pricing allocated directly to users/LOBs

Group cost/cost pools

Degree of accuracy in actual recoveries

Process Integration


No Items

Automated cost-recovery modeling systems

Dynamically adjusting systems that factor in unplanned events to adjust recovery rates

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