Assignment Exercise 15-4: Identi?ed Versus Allocated Costs in Budgeting Review Figure 15-3 and the accompanying text. Metropolis Health System is preparing for a signi?cant upgrade in both hardware and software for its information systems. As part of the project, the Chief of Information Operations (CIO) has indicated that the Information Systems (IS) department can change the format of the MHS operating budgets and related reports before the operating budget is constructed for the coming ?scal year. The Chief Financial Of?cer (CFO) has long wanted to modify what costs are identi?ed and what costs are allocated (along with the method of allocation). This is a golden opportunity to do so. To gain ammunition for the change, the CFO is preparing to conduct a survey. The survey will obtain a variety of suggestions for potential changes in allocation methods for the new operating budget report formats. You have been selected as one of the employees who will be surveyed.
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