Management Activities

Business unit managers typically perform activities like marketing and sales, production of goods or services, purchase of supplies, acquisition of assets, etc.

The first requirement to qualify as a viable EP center is that management's circle of activities should be large enough to require regular and meaningful trade-offs of revenues against costs. For example, units like central warehouses, building maintenance departments, or accounting departments with no decision making impact on revenue generation, would not qualify as viable EP centers since they cannot trade off the costs they are creating or incurring versus the revenues they enable.

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