Question

For each of the following organizational subunits, indicate the type of responsibility center that is most appropriate. Cost center or profit center Cost center or profit center Cost center 1. A movie theater in a company that operates a chain of theaters. 2. A radio station owned by a large broadcasting network. 3. The claims department in an insurance company 4. The ticket sales division of a major airline. 5. A bottling plant of a soft drink company. An orange juice factory operated by a large orange grower. The College of Engineering at a large state university 8. The European Division of a multinational manufacturing company. 9. The outpatient clinic in a for-profit hospital. 10. The Mayor's Office in a large city. Cost center Cost center or profit center Cost center or profit center Cost center or investment center Cost center Cost center

Answer 1

1. A movie theater in a company that operates a chain of theaters: Profit center

2. A radio station owned by a large broadcasting network :  Revenue center

3. The claims department in a insurance company : Cost center

4. The tickets sales division of a major airline : Revenue center

5. A bottling plant of a soft drink company : Profit center

6. An orange juice factory operated by a large orange grower : Profit center

7. The college of Engineering at a large state university : Cost center

8. The European division of a multinational manufacturing company : Investment center

9. The outpatient clinic in a for - profit hospital : Profit center

10.The Mayor's office in a large city : Cost center.