Chargeback and allocation funding mechanism is utilized when it is essential to spread the costs back

to the users. These methods are also useful when users require to comprehend exactly how much
the usage costs.

The allocation funding approach is applied when there are insufficient funds available and no
operational solutions are provided. It is utilized when it is not essential to monitor consumption and
expected monthly expenditures since it is easier and less expensive.

The chargeback approach helps recover IT costs since it bills customers, organizations, or
departments based on real usage and cost. Chargeback is particularly beneficial when users' usage
varies greatly and it is regarded that the organizations must account for the actual cost.

The corporate budget funding technique is utilized if it is not necessary to link IT costs to any
particular user because. When IT managers require better budget control and are considering the
study of new technologies, the corporate budget funding method is considered effective.