The CFO has just approached the FinOps team members and requested that all costs that are being submitted and analyzed should be amortized. The CFO also requested that the costs be allocated to each business unit. Would this be a best practice? (True or False)

The CFO has just approached the FinOps team members and requested that all costs that are being submitted and analyzed should be amortized. The CFO also requested that the costs be allocated to each business unit. Would this be a best practice? (True or False)
A . True
B. False

View Answer

Answer: A

Explanation:

The CFO is correct to want to see the costs amortized and also allocated to business units. When amortized it will reflect the true costs absorbed and also reflect discounts. This would also need to be mapped to each business unit. The main reason to do this is to ensure the right data is collected but also analyzed. (EDx Course)