So then just set a limit of $200 per head instead of allowing a few bad apples to spend $20k all on themselves.

This was extra on top of whatever the average cost really is for employees who are not abusing the system.

So, if other engineers get their equipment for $6k (beefed-up laptop, 32" or 30" 5k widescreen screen, ergonomic chair, standing desk — in theory amortized over 3-10 years, but really, on the retention period which is usually <3 years in software), we are talking about an increase of $200 on that.

Maybe not peanuts, but the cost of administration to oversee spending and the cost to employees to provide proof and follow due process (in their hourly rate for time used) will quickly add up and usually negate any "savings" from stopping abuse altogether — since now everybody needs to shoulder the cost.

Any type of cap based on average means that those who needed something more special-cased (more powerful machine, more RAM vs CPU/storage, more expensive ergonomic setup due to their anatomy [eg. significantly taller than average]...) can't really get it anymore.

Obviously, having no cap and requiring manager approval is usually enough to get rid of almost all abuse, though it is sometimes important to be able to predict expenses throughout the year.