HAM: Strategic Conformance Flashcards
Define: Contract Financials
Contract expenses tracked at the contract level.
Define: Rate card
Contract expenses tracked at the expense line level.
Define: Original cost
Costs associated with the purchase and storage of an asset.
Define: Operational expense
Costs associated with operating the asset (in use).
Define: Depreciation expense
An accounting concept of allocating a portion of the assets cost.
Define: Total cost of ownership
Original cost + operational expense.
What is depreciation?
Depreciation is the reduction in value of an asset over time due to wear and tear or technology improvements.
What is residual value?
Residual value represents the current estimated value of an asset after depreciation.
_______________ calculates an equal amount of value lost each year. If graphed, this creates a straight line graph, hence the name.
Straight line (SL) formula
_______________ needs to be recalculated each year based on the new value at that time. The formula takes the percentage of the SL value and doubles it.
Double-declining balance (DDB)
_______________ are purchased for long term and are not likely to be converted easily to cash.
Fixed assets
What are some examples of fixed assets?
Land & buildings, motor vehicles, furniture, computers, and office equipment
Fixed assets are commonly tracked at the ___________ by a finance or accounting department, but many IT assets can qualify as a fixed asset on their own or as part of a larger fixed asset group.
Corporate level
T | F: The value in identifying assets as a short term (liquid) assets is that they often receive more favorable tax treatment over fixed assets.
False
The value in identifying assets as a fixed assets is that they often receive more favorable tax treatment over short term (liquid) assets.
What provide you with the ability to identify different costs associated with different types of tasks and even to track based on time spent on the task?
Task rate cards
