Cost Accounting
Cost accounting refers to the internal financial system to track expenditures and costs within an organization. Such a system guide managers and decision-makers in their actions as they show the profit or loss of the organization within a specific period of time.
Traditional accounting process considers only direct cost related to the product and skips many environmental and hidden costs. For example, if toxic materials are emitted during the development of a product, then it has a high environmental cost. Manufacturing processes that generate high amount of wastes will have a high disposal cost. These kind of costs need to be included in the accounting system to have a proper cost model of a particular product. To solve this, …show more content…
The software and licensing cost must also be applied to determine the overall
Service cost. Software solutions usually require an initial cost for the first year and license renewal cost for the next years. If the initial cost is T, and license renewal cost is t for every year after the first year, and we amortize the initial cost over p years
Case Study: A Local Data Center
In this section, we apply the cost model we developed to the data center of Computer and Information Sciences (CIS) department at University of Alabama at Birmingham. This data center is very small as compared to the well-known data centers (e.g. Amazon, Google etc.). We decided to apply the cost model here because the internal infrastructure details and pricing for well-known data centers are not publicly available. However, the full cost accounting model for storage is applicable for any kind of data center and cloud storage systems.
Initial Cost
The CIS data center was developed in 2011. There are total 4 server racks and each rack contains 9 units. Each unit has the following configuration:
1. Supermicro 4U CSE-846E26-R1200B Rackmount Chassis / …show more content…
discussed the economics of long term digital storage with respect to Kryder's law, various storage business models, and the value of cloud for digital preservation. They encouraged to develop an accounting model to properly recognize the long-term cost of ownership of preserved data, and utilized current low interest rates to invest on solid state technologies which despite of their higher capital cost, are likely to have a lower total cost than disk. At the same time, solid state technologies retain its fast rapid access. However, their work also does not include hidden and indirect environmental costs of data storage and disposal costs. Our work complements the limitations of these models by considering both direct and indirect determinants of storage
Cost accounting refers to the internal financial system to track expenditures and costs within an organization. Such a system guide managers and decision-makers in their actions as they show the profit or loss of the organization within a specific period of time.
Traditional accounting process considers only direct cost related to the product and skips many environmental and hidden costs. For example, if toxic materials are emitted during the development of a product, then it has a high environmental cost. Manufacturing processes that generate high amount of wastes will have a high disposal cost. These kind of costs need to be included in the accounting system to have a proper cost model of a particular product. To solve this, …show more content…
The software and licensing cost must also be applied to determine the overall
Service cost. Software solutions usually require an initial cost for the first year and license renewal cost for the next years. If the initial cost is T, and license renewal cost is t for every year after the first year, and we amortize the initial cost over p years
Case Study: A Local Data Center
In this section, we apply the cost model we developed to the data center of Computer and Information Sciences (CIS) department at University of Alabama at Birmingham. This data center is very small as compared to the well-known data centers (e.g. Amazon, Google etc.). We decided to apply the cost model here because the internal infrastructure details and pricing for well-known data centers are not publicly available. However, the full cost accounting model for storage is applicable for any kind of data center and cloud storage systems.
Initial Cost
The CIS data center was developed in 2011. There are total 4 server racks and each rack contains 9 units. Each unit has the following configuration:
1. Supermicro 4U CSE-846E26-R1200B Rackmount Chassis / …show more content…
discussed the economics of long term digital storage with respect to Kryder's law, various storage business models, and the value of cloud for digital preservation. They encouraged to develop an accounting model to properly recognize the long-term cost of ownership of preserved data, and utilized current low interest rates to invest on solid state technologies which despite of their higher capital cost, are likely to have a lower total cost than disk. At the same time, solid state technologies retain its fast rapid access. However, their work also does not include hidden and indirect environmental costs of data storage and disposal costs. Our work complements the limitations of these models by considering both direct and indirect determinants of storage