Exercise 12-5

A major software company has established customer service centers in India, Ireland, and Israel to provide support to its U.S. customers with foreign operations. The prices that the company charges for software reflect estimated costs in operating the centers (i.e., there is no separate charge for service).

How should these centers be organized: as cost centers, profit centers, or investment centers?

Customer service centers should be organized as[investment centers, cost centers, or profit centers]?