Computer Charges and Engineering Organizations

The increasing importance of computers in engineering organizations has raised many issues related to computer charging policies. These include: (1) How direct computer charges are determined; (2) the relationship of computer activities to overhead and profit of the firm; and (3) computer charging policies to be used in dealing with clients. Existing charging policies, largely oriented to professional manpower cost, do not relate well to computer cost factors and may discourage optimal computer use. New approaches are required which are fair both to the engineering organization and the client. Due to variability of computer operations in different organizations and to lack of professionwide standards, each organization has developed its own procedures. These practices are examined and future improvements are suggested.