Question 30

Explanation

Chargebacks and showbacks both represent processes where departments are asked to be accountable for their technology usage and resources by being given visibility of the costs associated with it.

Chargebacks offer departmental visibility into IT resource usage and also charge departments for their use

Showbacks offer departmental visibility into IT resource usage without charging departments for their use.

Chargeback allows you to divide the cost of Cloud Infrastructure (CI) entities and charge internal customers based on their respective usage. It provides a breakdown of charges for supported member targets, allowing you to re-bill application owners by actual usage.

Incorrect answers :

1. Reservations:

   • Explanation: Reservations are not directly related to allocating costs to specific business units. Reservations typically involve reserving capacity or resources in advance, but they don’t address cost allocation.

2. Showback:

   • Explanation: Showback involves reporting usage and associated costs to departments or teams without actually charging them. It helps employees understand how their decisions contribute to the overall bill but doesn’t directly debit business units.

3. Allocation:

   • Explanation: Allocation is the process of distributing costs to specific business units based on their consumption. It ensures that each unit is charged appropriately for its usage.

4. Turnback:

   • Explanation: “Turnback” is not a recognized term in this context. It doesn’t relate to cost allocation or debiting business units.

Reference :

https://www.finops.org/framework/capabilities/invoicing-chargeback

Chargeback for Oracle Cloud Infrastructure