You have been asked to speak about the topic of responsibility centers to a group of executives at a conference...
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You have been asked to speak about the topic of responsibility centers to a group of executives at a conference.
For this speech you should select a company/business that you are familiar with and briefly describe it. Give three examples of responsibility centers in that business. Describe how these responsibility centers interact.
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"So this division is a primary source for profits and can be considered as a profit center. The R&D department of this software company can also ..."
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Let's think about Microsoft (as a software company). In Microsoft the human resources department doesn't earn revenue or turn a profit. Its main objective is to hire, train and support the company's employees, and there's a cost to the company to run the unit. Hence, human resources is typically viewed as a cost center. Cost centers are money pits and ...
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