Question

A major software company has established customer service centers in India, Ireland, and Israel to provide...

A major software company has established customer service centers in India, Ireland, and Israel to provide support to its U.S. customers with foreign operations. The prices that the company charges for software reflect estimated costs in operating the centers (i.e., there is no separate charge for service).

How should these centers be organized: as cost centers, profit centers, or investment centers?

Customer service centers should be organized as

cost centersprofit centersinvestment centers

.
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Answer #1

ANSWER: Cost centers

EXPLANATION: customer service centers of a company should be organized as cost centers because they only generate costs By providing support services to the customers. The examples of costs are salaries, telephone bills.

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