The state Department of Education licenses cloud storage for keeping track of education statistics. The governor’s office recently began using the cloud storage space also. As a result of the increased usage, the demands for the cloud storage soon exceeded its capacity. The director of the Department of Education was soon forced to license additional cloud storage space to meet the computing needs of her employees. The annual cost of the additional cloud storage space is $140,000.

Required:
1. What type of cost is this $140,000?
2. Should this cost be associated with the governor’s office or the Department of Education? Why?