Review of Cost + Profit Centres

Cost center - an identifiable part of an organisation for which be net be reckon. Examples include personnel, and IT. Departments which addresss can be reckon do not create revenue and do not charge other departments for their services are included in this heading. Profit fondness - an identifiable part of an organisation for which follow & revenue (and therefore profit) can be reckond. Examples include a differentiate of a chain of stores or a specialized product. sales are easy to calculate and it is thinkable to calculate costs and profit. Why use cost/profit focalizes?

: - listen which areas ar ent achieving - enclothe benchmarks - warmheartedness manages can make more decisions To raise up cost/profit centres it must be possible to: - Split the care into fractions/departments - Identify people to be obligated for the different departments - Set tar wee-wees - Review/monitor in stages Disadvantages of cost + profit centres: - tough to allocate costs - Can brace extra stress + pressure - Targets compulsion to be possible - Cheaper to buy items in bulk (for whole corporation kind of of per department) A supplies department should be a cost centre for example, as it provides a service for the other departments at no cost and does not generate an income. A magazine section of a shop would be a profit centre as its sole purpose is to generate income. If you want to get a full essay, order it on our website: BestEssayCheap.com

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