Xyberspace Consulting, Inc.

Darden Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

Xyberspace Consulting, Inc. is reconsidering the allocation of the costs associated with its Training and Educational Services Group (TESG), a shared-services or support department to its user departments. Currently, the company uses a single departmental rate to allocate actual training costs to the user groups, using the user groups' actual usage of TESG resources. The company is exploring whether it should allocate TESG fixed and variable costs separately, whether it should use budgeted or actual allocation rates and whether it should allocate costs based on budgeted or actual usage. This case is intended to give students exposure to allocating shared-services or support-department costs, understanding the implications of different allocation strategies, and evaluating whether and how allocation systems can facilitate strategy implementation.

Keywords

Citation

Lynch, L. and Galinsky, R. (2017), "Xyberspace Consulting, Inc.", Darden Cases. https://doi.org/10.1108/case.darden.2016.000354

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 2000 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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