Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center he or she probably manages.

a. Manager of the Central Reservation Office

b. Managers of various corporate-owned hotel locations

c. Managers of the Northeast and Southeast Corporate Divisions

d. Manager of the Housekeeping Department at one hotel

e. Manager of the complimentary breakfast buffet at one hotel

The Manager of the Central Reservation Office should be given the revenue center because the manager of the central reservation has the responsibility to generate the revenue for the organization.

In this case, the managers of various corporate-owned hotel locations have full control over the operations of the business which means it will be classified under the categories of the profit center.

The Manager of the Northeast and southeast corporate divisions are having full control of their particular divisions and the operations of their divisions. So, this means it will be classified as a profit center.

The managers of the housekeeping department at one hotel. In this case, they have the responsibility to control the costs, which means it will be classified as the cost center

The Manager of the Complimentary breakfast buffet at one hotel also has the responsibility to control the cost which means it will be classified as the cost center for the business.