I was given this in class and have to respond to it......Considering all the payments to the factors of production, Peter Drucker once said that there is no such thing as profit, only cost. What did he mean?
2006-10-17 15:59:09 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Let's say you're a corporation...Dividends that you give out are costs and therefore does not represent profit...If you're a sole proprietor the extra money that we call profit goes into your pocket which he is now calling costs...It's an accounting trick...You're just reclassifying the excess.
Personally, I think it is BS...I don't care what you call it as long as my wallet gets fatter.
2006-10-17 16:08:24 · answer #1 · answered by feanor 7 · 0⤊ 0⤋
His feeling is that we are just now getting to the point where computers are having a strategic impact on organizations, not so much answering the question of "What info do I need to do a job?" as asking, "Why do the job?" Drucker even went so far as to say that not only have computers failed to impart information, they have damaged it! Data clouds issues, it does not necessarily inform them. It also makes us inwardly not outwardly focused.To make the point he said that his greatest mistake was coining the term "profit center," which has been widely used and abused. This sort of analysis has misplaced the focus of many enterprises. There are no profit centers inside an enterprise, only cost centers exist, he said. The only real profit center is the customer whose check does not bounce!
that shud do i gues...
2006-10-17 23:12:28 · answer #2 · answered by fixmyspcbar 1 · 0⤊ 0⤋