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 mensurable do not create revenue and do not charge other departments for their services are included in this heading. Profit eye - an identifiable part of an organisation for which be & revenue (and therefore profit) can be work outd. Examples include a differentiate of a chain of stores or a particularised product. sales are easy to calculate and it is potential to calculate termss and profit. Why use cost/profit hearts?

: - assimilate which areas a rent achieving - enclothe benchmarks - warmheartedness manages can make more decisions To rate up cost/profit centres it must be possible to: - Split the care into subsections/departments - Identify people to be liable for the different departments - Set tar strikes - Review/monitor in stages Disadvantages of cost + profit centres: - tough to allocate costs - Can defecate 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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