The Purpose of the Data Processing Department of Falena Corporation

question 73

Multiple Choice

The purpose of the Data Processing Department of Falena Corporation is to assist the various departments of the corporation with their information needs free of charge.The Data Processing Department would best be evaluated as a:

• A)cost center.
• B)revenue center.
• C)profit center.
• D)investment center.

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Definitions:

Principals

Individuals or entities who authorize agents to act on their behalf in various transactions or decisions.

Information Problems

Issues arising from asymmetrical information between buyers and sellers, where one party has more or better information than the other, leading to suboptimal market outcomes.

Inefficient Outcomes

Situations in which resources are not allocated optimally, leading to lost potential value or benefits in an economy or system.

Public Sector

Part of the economy that is controlled by the government, including all public services and government-owned entities.