Buy custom From cost center to profit center
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2089 |
Essay's paper body
The goal for profit center is to have revenue exceed expenses. In other words, a business unit is regarded as a profit center when it has its own revenue and profit targets. Based on the definition above, profit centers should have following characterizes:
o Focus on market that are generating higher profits
o Create a portfolio of products and services driven by market demand...
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Normally, a cost center within a company provides service to other business units for free or only at cost. After the cost center converts into a profit center, the former cost center may be allowed to sell its services to other companies. Meanwhile, the company's other business units are then required to pay for the services they used to get for free or at lower cost...
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