Question

Write few lines on these applications

1. Cost/Profit centers

2. Incentives for teachers

3. Asset ownership

Answer 1

1) Cost/Profit centers are important for the success of an entity. The profit center is a subunit of a firm who is responsible for profits, revenues, and costs. It evaluates the loss or profit of individual, independent areas within the firm. On the other hand, cost center is a subunit of a firm that captures the costs of that unit

2) An incentives for teacher’s acts as a motivation to greatly enhance the overall quality of the education system. Teacher's incentives are associated with higher performance levels for the student. The incentive attracts and retains high-quality teachers. The students are likely to learn more in classrooms with highly motivated and dedicated teachers

3) Asset owner as the name suggests is the owner of assets. A person can own a business without owning the tangible assets of the business. Similarly a person can own land, capital and labor however is not owner of a business; instead the asset owner can work as someone's employee, lease his assets, and is entitled to be paid for it