What’s the goal of establishing a chargeback model in cost management?

Establishing a chargeback model in cost management aims to allocate costs to the respective departments or projects effectively. This process is crucial in creating transparency and accountability within an organization. By implementing a chargeback model, businesses can ensure that departments understand and take responsibility for the costs they incur.

This model provides a clear picture of resource usage, allowing departments to budget more accurately and make informed decisions about their spending. It encourages departments to be more efficient and can lead to better resource management and optimization. Ultimately, this approach supports an organization’s financial strategy by linking costs directly to the services consumed, fostering a culture of responsibility regarding resource utilization.

In this context, opting for other choices would not achieve the goal of an effective cost management strategy. Centralizing services under one department does not directly address cost allocation; eliminating transparency contradicts the purpose of a chargeback model, and managing services without financial impact is unrealistic since every service incurs a cost that should be accounted for.