When IT Department Costs Are Not Charged to Other Departments

question 8

Short Answer

When IT department costs are not charged to other departments, the information systems department is called a(n) _________ because it generates accounting charges with no offsetting credits for IT services.

---

Definitions:

Net Price Method

The net price method calculates the final price after all discounts, rebates, and allowances have been subtracted from the list price.

Catalog Price

The price listed in a catalog, not accounting for any discounts or promotions.

Credit Terms

Credit Terms are the payment terms and conditions established by a seller, including the period that has to pass before an invoice is considered overdue.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.