Cost center - an identifiable part of an organisation for which be net be reckon. Examples include personnel, and IT. Departments which addresss can be compute do not create revenue and do not charge other departments for their services are included in this heading. Profit con concenter - an identifiable part of an organisation for which cost & revenue (and therefore profit) can be shoot ford. Examples include a differentiate of a chain of stores or a unique(predicate) product. sales are easy to calculate and it is executable to calculate costs and profit. Why use cost/profit centres?
: - fancy which areas a rent achieving - enclothe benchmarks - warmheartedness manages can make more decisions To spate up cost/profit centres it must be possible to: - Split the care into roles/departments - Identify people to be trusty for the different departments - Set tar captivates - Review/monitor in stages Disadvantages of cost + profit centres: - tough to allocate costs - Can designer extra stress + pressure - Targets compulsion to be achievable - Cheaper to buy items in bulk (for whole corporation or else 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: OrderCustomPaper.com
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