Please read Chapter 11 and do some research about cost, profit, and investment centers. Discuss each of these, and choose a company (either one you work for, have worked for, or would like to work for) and discuss in detail which parts of the company would fall under each of the various centers. Be sure to justify why you have identified each part of the company as a cost, profit, or investment center. then post to the 2 students below
Post an original response to the discussion question by the end of the day on the due date listed. All posts are to be substantial and related to the discussion question.
Post at least two replies to classmate responses for this week’s discussion board by Sunday at 11:59 p.m. ET. Postings must be made on three separate days. Your grade for the discussion is out of 15 points and will be based on the rubric: 1
Josh Escobedo in response to this Topic
A cost center is a department that is responsible for the costs of the business but not responsible for revenue, its goal is to keep costs low and track costs in operations and it contributes an important job to the organization. A profit center is a part of an organization that directly contributes to its profits, they have the responsibility of raising profits for the company and creating activities that will generate more revenue. An investment center is an area of an organization whose goal is to figure out the costs and revenue of the company and is primarily measured up against the return on investment (ROI). A company that I would like to work for is Chrysler. It’s cost center would be parts of it such as the online live chat center via their website, their phone line center, and their manufacturing plants – all of these cost the company money to operate but don’t create revenue. It’s profit centers would be areas such as accounting, legal, and dealership locations – since these all contain assignable revenues. Lastly, it’s investment center would be the mother company of Chrysler which is Fiat Chrysler Automobiles – since this is where a combined evaluation of revenues and profits for the company would be done.
Benjamin Ogle in response to this Topic
3/1/2017 11:45 AM EST | 158 words
The company I work for is a great example of cost, profit and investment centers. With many different areas of Comcast we can actually find many examples of each. A good example of a cost center is a Technical Support call center who is directly involved in taking customer phone calls to resolve technical issues. This could be anything from assisting customers with setting up their set-top boxes and televisions to troubleshooting internet and email problems. The call center reps are a non-revenue generating department, as there is no selling involved in the interaction. A profit center would be an inbound call center sales department, for instance. These call center agents are a revenue generating department as the close sales on calls and create revenue for the company. An example of an investment center would be the corporate office located in Philadelphia, PA. This is the parent company for all of Comcast and NBC Universal and its subsidiaries.