Final answer:
Parts of different businesses can be categorized as investment centers, profit centers, or cost centers based on their role and performance measurement. For example, university bookstores and department store sections are profit centers; production facilities are investment centers; and internal service departments such as billing and legal are cost centers.
Step-by-step explanation:
In addressing the question of identifying whether each part of a business represents an investment center, a profit center, or a cost center, we evaluate the responsibility and performance measurement for each business unit.
The bookstore of Central Michigan University would be considered a profit center, as it is likely to be evaluated on its profitability through sales of books and other items to students.
The billing department of Jackson Life Insurance Co. would be seen as a cost center because it does not directly generate revenue but incurs costs that need to be managed efficiently.
The San Francisco Factory of Ghirardelli Chocolates could be considered an investment center because it is likely responsible for its profits as well as the investments in production assets.
The textiles and rugs department of IKEA would be a profit center, with its performance measured based on the profit generated from sales of textiles and rugs.
The gift shop at the Museum of Science and Industry would also be categorized as a profit center, similar to the university bookstore, because it would generate income from gift sales.
The legal department of Walmart is typically a cost center, providing essential services that do not directly earn profits but are essential for operations and need to control costs effectively.
These categorizations are based on the parts' roles within their respective businesses, with profit centers focused on earning income, investment centers responsible for both making profits and managing investments, and cost centers aiming to efficiently manage expenses.