"> Budget and Cost Management – APO06 (COBIT 2019) – Process-Symphony – ITSM Knowledge Orchestrators

Search Knowledge

Budget and Cost Management – APO06 (COBIT 2019)

Managed Budget and Cost

Manage the I&T-related financial activities in both the business and IT functions, covering budget, cost and benefit management and prioritization of spending through the use of formal budgeting practices and a fair and equitable system of allocating costs to the enterprise. Consult stakeholders to identify and control the total costs and benefits within the context of the I&T strategic and tactical plans. Initiate corrective action where needed.


Foster a partnership between IT and enterprise stakeholders to enable the effective and efficient use of I&T-related resources and provide transparency and accountability of the cost and business value of solutions and services. Enable the enterprise to make informed decisions regarding the use of I&T solutions and services.

Management Practices

APO06.01 Manage finance and accounting.

Establish and maintain a method to manage and account for all I&T-related costs, investments and depreciation as an integral part of enterprise financial systems and accounts. Report using the enterprise’s financial measurement systems.

APO06.02 Prioritize resource allocation.

Implement a decision-making process to prioritize the allocation of resources and establish rules for discretionary investments by individual business units. Include the potential use of external service providers and consider the buy, develop and rent options.

APO06.03 Create and maintain budgets.

Prepare a budget reflecting investment priorities based on the portfolio of I&T-enabled programs and I&T services.

APO06.04 Model and allocate costs.

Establish and use an I&T costing model based, for example, on the service definition. This approach ensures that allocation of costs for services is identifiable, measurable and predictable, and encourages the responsible use of resources, including those provided by service providers. Regularly review and benchmark the cost/chargeback model to maintain its relevance and appropriateness for evolving business and IT activities.

APO06.05 Manage costs.

Implement a cost management process that compares actual costs against budget. Costs should be monitored and reported. Deviations from budget should be identified in a timely manner and their impact on enterprise processes and services assessed.


Financial management FMIT

The overall financial management, control and stewardship of the IT assets and resources used in the provision of IT services, including the identification of materials and energy costs, ensuring compliance with all governance, legal and regulatory requirements.


{{ reviewsOverall }} / 5 Users (0 votes)
What people say... Login to rate
Order by:

Be the first to leave a review.

/ 5
{{{review.rating_comment | nl2br}}}

Show more
{{ pageNumber+1 }}