Under what conditions would you recommend using each of these funding methods to pay for information systems expenses: allocation, chargeback, and corporate budget

The conditions under which each funding method for paying for IT system expenses would be recommended are:

Allocation method is preferred to other methods when actual usage cannot be captured but, some other cost drivers can be used as the allocation bases.

Chargeback method works better than others when actual usage by each unit can be accurately captured.

Explanation:

The Allocation Funding Method charges IT costs to individuals, departments, or business units based on revenues, number of employees, and other cost drivers and not based on usage. It is often used when actual usage cannot be recorded.

The chargeback method charges IT costs to individuals, departments, or business units based on their actual usage of the IT services.  With wide variation in IT usage, business units need to be charged their actual costs consumed.

The corporate budget method allocates IT cost based on a periodic predetermined rate. It is used where unit managers need to be given control over their budgets, enabling them to search for cost-saving technologies.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.