Question

Jasper Golf Resort has a full-service hotel and three golf courses. The hotel, in addition to having over 100 hotel rooms, has two dining areas and a catering service for weddings and meetings. The hotel has a housekeeping staff and a repairs and maintenance group. In addition, there is a meetings coordinator with a technical staff to support meetings. The golf courses have a superintendent that oversees a grounds and maintenance staff. Each course has a pro shop that includes apparel and golf supplies and a lunch counter. In addition, there is a golf cart center that provides carts to each course.

Classify the following responsibility centers as investment center, profit center or cost center.

a. Jasper Golf Resort
b. Hotel
c. Golf Courses
d. House-keeping
e. Restaurants
f. Weddings and meetings
g. Grounds and maintenance
h. Carts
i. ProShops

Answer 1

Answer and Explanation:

The classification is as follows

a. Investment center

b. Profit center

c. Profit center

d. Cost center

e. Profit center

f. Profit center

g. Cost center

h. Profit center

g. Profit center

In this way it should be classified as an investment center or profit center or cost center

Hence, the same is to be considered