With a variable charge method based on volume, indirect IT department costs are ____.
A)treated as general organizational costs and not charged to other departments
B)allocated to other departments based on user-oriented activity
C)varied from month to month, depending on a department's use of resources
D)divided among all departments in the form of a set monthly charge

Question

Quizplus · Accepted Answer

With a variable charge method based on volume, indirect IT department costs are allocated to other departments based on user-oriented activity. This means that departments will be charged based on how much they use IT resources, rather than a set monthly charge or disregarding the costs altogether. This allocation method is meant to be more fair and accurate in reflecting the distribution of IT costs among departments.

With a Variable Charge Method Based on Volume, Indirect IT