Some reasons to limit the number of cost centers include their negative impact on other departments due to incorrect distribution of funding, problems with effectiveness monitoring, and difficulty in controlling profit. The existing cost center can be eliminated, or its size can be reduced in the following way. One of the ideas is to apply software to replace the functions of this department. Another possible way is to turn a cost center into a profit center. Finally, reduction of funding can lead to cost center size reduction.
Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center.
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Academic.Tips. (2021) 'Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center'. 26 August.
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Academic.Tips. (2021, August 26). Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center. https://academic.tips/question/many-organizations-limit-the-number-of-expense-cost-centers-list-three-reasons-for-wanting-to-limit-cost-centers-list-three-ideas-for-eliminating-or-reducing-the-size-of-an-existing-cost-center/
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Academic.Tips. 2021. "Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center." August 26, 2021. https://academic.tips/question/many-organizations-limit-the-number-of-expense-cost-centers-list-three-reasons-for-wanting-to-limit-cost-centers-list-three-ideas-for-eliminating-or-reducing-the-size-of-an-existing-cost-center/.
1. Academic.Tips. "Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center." August 26, 2021. https://academic.tips/question/many-organizations-limit-the-number-of-expense-cost-centers-list-three-reasons-for-wanting-to-limit-cost-centers-list-three-ideas-for-eliminating-or-reducing-the-size-of-an-existing-cost-center/.
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Academic.Tips. "Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center." August 26, 2021. https://academic.tips/question/many-organizations-limit-the-number-of-expense-cost-centers-list-three-reasons-for-wanting-to-limit-cost-centers-list-three-ideas-for-eliminating-or-reducing-the-size-of-an-existing-cost-center/.
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"Many organizations limit the number of expense (cost) centers. List three reasons for wanting to limit cost centers. List three ideas for eliminating or reducing the size of an existing cost center." Academic.Tips, 26 Aug. 2021, academic.tips/question/many-organizations-limit-the-number-of-expense-cost-centers-list-three-reasons-for-wanting-to-limit-cost-centers-list-three-ideas-for-eliminating-or-reducing-the-size-of-an-existing-cost-center/.
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