Question

One of the unique services provided by San Francisco's St. Francis Hotel is cleaning and polishing coins (pocket change) for the guests. From the standpoint of hotel management, this "money laundry" should be viewed as: Multiple Choice A cost center. A profit center (other than an investment center). An investment center. A contribution center.

Answer 1

Answer:

From the standpoint of hotel management, this "money laundry" should be viewed as: both a cost center and a profit center

Explanation:

A profit center is a branch or division of a company that is expected to add to the entire profitability of that company.

A cost center does not costs the organization money to operate and does not add profit directly to the company.

However, it can contribute to profit indirectly by enhancing the company's operational excellence, customer service, and general service delivery.

Cleaning and polishing coins (pocket change) for the guests as a unique service could come as a perk that makes San Francisco's St. Francis Hotel a preferable hospitality center.

Even though it costs to maintain the money laundry, the hotel can carefully increase the general rates to include the additional cost.