When IT department costs are not charged to other departments,the information systems department is called a _____ because it generates accounting charges with no offsetting credits for IT services.
A) lexicon
B) cost center
C) hub
D) repository

Question

Quizplus · Accepted Answer

A cost center is a department or unit within an organization that incurs expenses but does not directly generate revenue. IT departments that are not charged to other departments are typically considered cost centers because they do not generate revenue but still incur expenses. The lack of offsetting credits for IT services means that the IT department cannot be considered a profit center.

When IT Department Costs Are Not Charged to Other Departments,the