What is a hotel chain's online reservation department most likely to be?
A) a cost center
B) a revenue center
C) a profit center
D) an investment center
What is the presidents' office of a manufacturing company most likely to be?
A) a cost center
B) a revenue center
C) a profit center
D) an investment center
1. Hotel Chain's online reservation department is most likely the Revenue center.
Reason:- A Revenue center is the department that generates sales for the company
The main source of revenue of the hotel is from rooms and food and beverage, the hotel chain's online reservation department helps the company to earn this main source of revenue.
2. Presidents' Office is most likely a cost center.
Reason:- Cost center is the department that does not directly contribute to this profit.
The Presidents' office can be used to control cost and to provide internal services such as administration, finance, etc. They aim is to control cost, improve performance and revenue.
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