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.

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Definitions:

Aggregate Economic Rent

The total earnings that factors of production receive over and above their opportunity cost, representing the extra income derived from resource ownership.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change on an outcome.

Surplus Payments

Payments made above the market price, often by a government to producers, to encourage production or as a form of subsidy.

Economists

Professionals who study and apply theories and concepts related to economies, analyzing trends and advising on economic policy.