2. COST ACCOUNTING CONCEPTS FOR IS ORGANIZATIONS › 2.5 Differential Charging › 2.5.2 Zone Accounting

2.5.2 Zone Accounting

Shift accounting (zone accounting in CA MICS terms) is a
surcharge or discount based on time of day.  A zone surcharge
is, in effect, a penalty charge for transacting business at
the most desirable time.  A zone discount is an incentive to
transact business at a less desirable time.

The justification for zone accounting is that it tends to
distribute the demand for resources over a wider timespan,
thus reducing the peak demand and the corresponding capacity
required to support it.

The potential problem with zone surcharges is that if the
penalty is large enough, new peaks will form at the previous
low demand periods.  When this happens, it requires either a
surcharge adjustment or a change in the relative surcharge
applied to each zone.  Either of these courses of action,
however, may result in dissatisfied users.