Name Institution Date ➢ Centralized organizations represent organizations that have managers responsible for making company decisions. ➢ As such, when the organizations choose to be decentralized and have a hierarchy of individuals making decision in the organization, the need for cost centers arises. ➢ The transition stage would also require inputs from the business analytics. ➢ Responsibility centers describe units within organization which are supervised by managers and are tasked with business’s activities and results. • Responsibility centers include; • profit centers, • discretionary expense center, • turnover centers, • profitability, and • cost centers There various functions of responsibility centers; • Responsibility centers ease the task of identifying various opportunities and challenges in the marketplace • Responsibility centers increase the time management to make which are of critical importance to the organization. • Responsibility centers also decrease the time used to make opinions in times of unpredicted situations. • Sometimes cost centers could drain the organization and as such the use of chargebacks could be implemented. • The chargebacks are critical in building a culture of accountability in an organization without time wastage and are deployed as advanced tools for billing. • Charge backs are utilized for billing in cost centers and as such allows for the organization to delegate, monitor, and the cost ...
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