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Xyberspace Consulting, Inc. Essay Sample

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Xyberspace Consulting, Inc. Essay Sample

Xyberspace Consulting is an Internet consulting firm in Austin, Texas that takes pride in keeping their employees up to date with education in the latest technology and software advances. They have some of the best trainers and require all employees to attend a total of two weeks of training. The problem comes from the allocation of the cost of the training when they go over budget or when certain departments do not utilize the training sessions as much as they are supposed to.

Options

Xyberspace has a few options but they will all most likely come with some opposition. The first is to separate fixed and variable costs and hold operating departments to the budgeted fixed costs but only charge them for the variable costs they are responsible for. Another option is to outsource their training because it is much cheaper to do that rather than to train the employees internally.

Cost Allocation

Below is a summary of the current cost allocation along with allocation of costs when fixed and variable costs are separated.

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