Chapter C, Problem 3DQ

To determine

Introduction: Operating department is responsible for smooth and profitable manufacturing in an organization. Its objectives are to deliver high quality and effective operations. Managers of operating department plan unanticipated situations and their unanticipated outcomes that arises from groundwork and assumptions.

Service department is also a cost centre which provides services to the whole organization. Managers in service department are responsible to keep the cost of providing services down or to meeting the objects within the cost specified in budgets.

To determine: Differentiate between operating departments and service departments.