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Cost Centres
A cost centre is a department within a business to which costs can be allocated. The term includes departments which do not produce directly but they incur costs to the business, when the manager and employees of the cost centre are not accountable for the profitability and investment decisions of the business but they are responsible for some of its costs. Types There are two main types of cost centres: * Production cost centres, where the products are manufactured or processed. Example of this is an assembly area. * Service cost centres, where services are provided to other business units or other cost centres. Example of this is the personnel department or the canteen. Examples * Marketing department * Human resources * Research and development * Work office * Quality assurance * Engineering * Logistics * Procurement Cost centres can be trimmed down to the smallest segregated tasks within Departments. It is not necessary to consider departments as outright cost centres. Some c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ..., cost is a metric that is totaling up as a result of a process ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Human Resources
Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include ''manpower'', ''Labour (human activity), labor'', ''labor-power'', or ''personnel''. In vernacular usage, "human resources" or "human resource" can refer to the human resources department (HR department) of an organization, which performs human resource management, overseeing various aspects of employment, such as compliance with labor law and employment standards, job interview, interviewing and selection, performance management, administration of employee benefits, organizing of employee files with the required documents for future reference, and some aspects of recruitment (also known as talent acquisition), talent management, staff wellbeing, and employee offboarding. They serve as the link between an organization's management and its e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Research And Development
Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage of development of a potential new service or the production process. Although R&D activities may differ across businesses, the primary goal of an R&D department is to new product development, develop new products and services. R&D differs from the vast majority of corporate activities in that it is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment. R&D is crucial for acquiring larger shares of the market through new products. ''R&D&I'' represents R&D with innovation. Background New product design and development is often a crucial factor in the survival of a company. In a global industrial landscape that is changing fast, firms must continually revise their design and range of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quality Assurance
Quality assurance (QA) is the term used in both manufacturing and service industries to describe the systematic efforts taken to assure that the product(s) delivered to customer(s) meet with the contractual and other agreed upon performance, design, reliability, and maintainability expectations of that customer. The core purpose of Quality Assurance is to prevent mistakes and defects in the development and production of both manufactured products, such as automobiles and shoes, and delivered services, such as automotive repair and athletic shoe design. Assuring quality and therefore avoiding problems and delays when delivering products or services to customers is what ISO 9000 defines as that "part of quality management focused on providing confidence that quality requirements will be fulfilled". This defect prevention aspect of quality assurance differs from the defect detection aspect of quality control and has been referred to as a ''shift left'' since it focuses on quality effor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Logistics
Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other edible items. In military logistics, it is concerned with maintaining army supply lines with food, armaments, ammunition, and spare parts apart from the transportation of troops themselves. Meanwhile, civil logistics deals with acquiring, moving, and storing raw materials, semi-finished goods, and finished goods. For organisations that provide Waste collection, garbage collection, mail deliveries, Public utility, public utilities, and after-sales services, logistical problems must be addressed. Logistics deals with t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Efficiency
Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. In more mathematical or scientific terms, it signifies the level of performance that uses the least amount of inputs to achieve the highest amount of output. It often specifically comprises the capability of a specific application of effort to produce a specific outcome with a minimum amount or quantity of waste, expense, or unnecessary effort.Sickles, R., and Zelenyuk, V. (2019).Measurement of Productivity and Efficiency: Theory and Practice. Cambridge: Cambridge University Press. . Efficiency refers to very different inputs and outputs in different fields and industries. In 2019, the European Commission said: "Resource efficiency means using the Earth's limited resources in a sustainable procent manner while minimising impacts on the envi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profit Margin
Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated. Profit margin is important because this percentage provides a comprehensive picture of the operating efficiency of a business or an industry. All margin changes provide useful indicators for assessing growth potential, investment viability and the financial stability of a company relative to its competitors. Maintaining a healthy profit margin will help to ensure the financial success of a business, which will improve its ability to obtain loans. It is calculated by finding the profit as a percentage of the revenue. \text = = For example, if a company reports that it achieved a 35% profit margin during the last quarter, it means that it netted $0.35 from each dollar of sales generated. Profit margins are generally distinct from rate of return. Pro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profit Center
A profit center is a part of a business which is expected to make an identifiable contribution to the organization's profits. Overview A profit center is a section of a company treated as a separate business. Thus profits or losses for a profit center are calculated separately. A profit center manager is held accountable for both revenue and costs (expenses), and therefore for profits. This means that the manager is accountable for driving the sales revenue generating activities which lead to cash inflows and at the same time controlling the cost-generating activities. This makes the profit center management more challenging than cost center management. Profit center management is equivalent to running an independent business because a profit center business unit or department is treated as a distinct entity enabling revenues and expenses to be determined and its profitability to be measured. Business organizations may be organized in terms of profit centers where the prof ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Responsibility Center
A responsibility center is an organizational unit headed by a manager, who is responsible for its activities and results. In responsibility accounting, revenues and cost information are collected and reported on by responsibility centers. Typical examples of responsibility centers are the profit center,Melumad, Nahum, Dilip Mookherjee, and Stefan Reichelstein.A theory of responsibility centers" ''Journal of Accounting and Economics'' 15.4 (1992): 445-484. cost center and the investment center. Profit center A profit center is characterized by the responsibility to choose inputs and outputs with a fixed level of investment. Performance evaluation A typical measurement for profit center management is the ability to maximize profits as they are responsible for both costs and revenues. Cost center A cost center is characterized by the lowest level of responsibility compared to the other two centers. Cost center managers are expected to produce as much output with a fixed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue Center
In business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ..., a revenue center is a division that gains revenue from product sales or service provided. The manager in a revenue center is accountable for revenue only. Overview A revenue center is one of the five divisions of a responsibility center – cost center, revenue center, profit center, contribution center and investment center. Cost centers, like revenue centers, only monitor costs, thereby making them a counterpart to the revenue center. Revenue centers only measure the output (in fiscal standings) and are therefore marketing establishments which are exempt from profit generation and accountability thereof. In a revenue center performance is measured by comparing actual sales to projected ones (as well as number of sa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
