Question

As manager and based on your research, identify how you would incorporate cost centers into your organization. How would you determine if the centers you have selected are profitable?

Answer 1

A lost centre is a part of organisation to which lost may be ascertain of or charged for accounting purpose, lost enteers are typically business units that incur lasts but only inclirectly contribute to revenue generation, for Greample, legal alpartment accounting department, research and clenelopment deportment of a company R. A Cost Center is a funchon within an : organization that does not directly aded to profit belt still lost money to operate, such as litr or IT, or accounting departments. The main use of a cost center is to track actial expenses for Comparison of badget to budget. Amenager for a lost center is only responsible for keeping lost in line with budget and does not bear by any responsibility regarding revenue or investment VOOL Scanned with CamScanner

A lost Center indirectly contributes to a company's Profit Via operational excellence, Customer Service and enhanced product value. lost center helps helps management to thilfe utilize Resources in Smaator way by having a greater understanding of how they are being used A lost contres profitability cannot be enaderated but it contributes revenue or do it helps to con profit indirectly, by analysing the the revenue before and After the lost hentare Center, of increase renenue will result Cost Center is profitable Some times of lost centre also provide future Profits for eq. Research and development or Innovation bust in Scanned with CamScanner