Each of the following managers works for a national chain of hotels and has been

Question

Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center they manage. a. Manager of the Central Reservation Office b. Managers of various corporate-owned hotel locations c. Manager of the H1 Corporate Division d. Manager of the Housekeeping Department at one hotel e. Manager of the H2 Corporate Division f. Manager of the complimentary breakfast buffet at one hotel Cost center nvestment center Profit center Revenue center

Explanation / Answer

Ans A: Revenue Center

Reason: Manager will be entitled with the responsibility to increase sales and maximise revenue. Thus Revenue Center will be correct option

Ans B:Profit Center

Reason: Manager is responsible to maange cost or incrase revenue in order to maximise profit.

Ans C:Investment Center

Reason: manager will be responsible to ensure shareholder expectations are being met

Ans D Cost Center

Reason: Manager will be responnsible to manage cost as per the planning and budget prepared.

Ans E : Same as Ans C

Ans F: Same as Ans D

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