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ACCA Applied Skills · Performance Management · Big data and data analytics

Which of the following is a recognised benefit to a management accountant of an entity using a public cloud computing service for its management information system?

The benefit is scalability with a shift from capital to operating expenditure. Cloud users can quickly increase or reduce capacity and pay for what they use. The other statements are false because the provider controls the servers, security risks remain, and internet access is required.

  1. AComputing capacity can be scaled up or down quickly, with costs shifting from capital to operating expenditureCorrect
  2. BThe entity gains full control over the physical security of the servers holding its data
  3. CData protection and confidentiality risks are eliminated because the provider holds the data
  4. DThe entity no longer depends on internet connectivity to access its data

Explanation

Cloud services offer scalability and pay-as-you-use pricing, which converts capital expenditure into operating expenditure. The other options are wrong: the provider, not the entity, controls physical servers; security risks are not eliminated; and cloud access requires internet connectivity.

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