To extend the commitment to increasing productivity in all departments within a given facility, many companies have adopted the concept of __________.
A) cost centers
B) profit centers
C) profit groups
D) cost groups
E) cost divisions

Question

Quizplus · Accepted Answer

Profit centers are departments within a company that are responsible for generating revenue and profits. By adopting this concept, companies aim to increase productivity by incentivizing departments to generate profits and promoting a culture of efficiency and effectiveness. Cost centers, cost groups, and cost divisions are focused on cost reduction rather than revenue generation, while profit groups do not exist as a widely recognized concept in management.

To Extend the Commitment to Increasing Productivity in All Departments