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Running head: PERFORMANCE MEASURES
Week Six: Performance Measures
Student Name
GCU ACC 650
February 24, 2021

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PERFORMANCE MEASURES 2
Performance Measures
1. Problem 12.41
DATE: February 24, 2021
TO: General Manager
FROM: Erika Arellano
SUBJECT: Responsibility center designation
I’m writing to make a few suggestions on the responsibility center assignment of the
various departments of the hotel.
The general manager of the hotel is not assigned to any responsibility in making major
hotel’s decisions. These decisions are allocated to the various department managers. This
therefore makes the hotel not an investment center. Hence, the hotel has two
responsibility centers. These are cost center and profit center.
The grounds and maintenance department and housekeeping custodial department should
be classified as a cost center. The three subunits, front desk, bell staff and guest services
should also be classified under cost center. This is because the hotel does not generate
any income from these departments and subunits. Instead, it caters for their costs.
The hospitality department, the food and beverage department and recreation services
department are classified under profit center. These two departments are the major
attractions for guests to the hotel and therefore, generating the hotel’s income.
The manager of the department of food and beverage should be responsible for the
generation of the menu. He is responsible for setting the prices of the items being sold.

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Running head: PERFORMANCE MEASURES Week Six: Performance Measures Student Name GCU – ACC 650 February 24, 2021 PERFORMANCE MEASURES 2 Performance Measures 1. Problem 12.41 DATE: February 24, 2021 TO: General Manager FROM: Erika Arellano SUBJECT: Responsibility center designation I’m writing to make a few suggestions on the responsibility center assignment of the various departments of the hotel. The general manager of the hotel is not assigned to any responsibility in making major hotel’s decisions. These decisions are allocated to the various department managers. This therefore makes the hotel not an investment center. Hence, the hotel has two responsibility centers. These are cost center and profit center. The grounds and maintenance department and housekeeping custodial department should be classified as a cost center. The three subunits, front desk, bell staff and guest services should also be classified under cost center. This is because the hotel does not generate any income from these departments and subunits. Instead, it caters for their costs. The hospitality department, the food and beverage department and recreation services department are classified under profit center. These two departments are the major attractions for guests to the hotel and therefore, generating the hotel’s income. The manager of the department of food and beverage should be responsible for the generation of the menu. He is responsible for setting the prices of the items being sol ...
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