An internationally known food-processing company has acquired a mineral mining company. The decision to acquire the mining

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An internationally known food-processing company has acquired a mineral mining company. The decision to acquire the mining company is considered strategic based on the anticipated growing demand for the minerals used to create the packages for the company’s products. The mining operation continues to be run by its local management group, which makes all its own investment decisions, independent of the management of the food processing company. The mining company described above is most likely what type of strategic business unit (SBU)?

a. Cost center

b. Revenue center

c. Profit center

d. Investment center

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Cost Management A Strategic Emphasis

ISBN: 9781259917028

8th Edition

Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith

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