easyMultiple Choice
CISA Practice Question: Uses a chargeback model to allocate IT costs to…
An organization uses a chargeback model to allocate IT costs to business units. What is a PRIMARY benefit of this approach?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Encourages responsible consumption of IT resources
Chargeback increases transparency and encourages business units to use IT resources efficiently.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reduces total IT costs
Why it's wrong here
Chargeback redistributes existing IT expenditure across business units; it does not reduce the total spend, and consumption visibility may even increase it. It is tempting because cost awareness often prompts efficiency, but that is an indirect behavioural outcome, not the primary benefit of the allocation model itself.
- ✗
Eliminates the need for an IT steering committee
Why it's wrong here
Chargeback changes how costs are recovered, not how IT investment decisions are governed; a steering committee still prioritises and approves spending. It is tempting because business units gain visibility into their consumption, but that accountability complements governance rather than replacing the committee that sets direction.
- ✗
Simplifies IT budgeting process
Why it's wrong here
Chargeback adds per-unit metering, invoicing and dispute handling, so it increases administrative effort rather than simplifying budgeting. It is tempting because granular cost visibility can inform budget decisions, but simplification would describe a centralised allocation model, not one that bills each business unit.
- ✓
Encourages responsible consumption of IT resources
Why this is correct
Under chargeback, each business unit's budget is directly debited for the IT resources it consumes, so units see the marginal cost of over-provisioning and self-limit demand. This cost visibility satisfies the stem's allocation model by tying consumption decisions to financial accountability.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.