Published by:
Harvard Business Publishing
Length: 3 pages
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Abstract
A cost center can take pride in the service it gives to the company, but it''s difficult for managers to tell if the center is working at an efficient level. Xerox''s answer is to use the yardstick applied in the profit center in the cost center. The Logistics and Distribution (L&D) cost center of the Business System Group has taken steps to emulate the behavior of the profit center.
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Abstract
A cost center can take pride in the service it gives to the company, but it''s difficult for managers to tell if the center is working at an efficient level. Xerox''s answer is to use the yardstick applied in the profit center in the cost center. The Logistics and Distribution (L&D) cost center of the Business System Group has taken steps to emulate the behavior of the profit center.