... activity which services other centres (such as transport, or computing). These centres are given a high degree of autonomy over the way that they organise their own affairs, and their performance is typically judged in terms of the profits they make, or their success in meeting a budget. As far as possible, they are charged the true costs of their activities and (in the case of "profit centres") credited with the value of their output. This is why an "internal market" is necessary: to put a value on goods and services that move from centre to centre. If one centre absorbs services from another, then the first needs to be charged the real costs of those services, while the latter needs to be credited with their value. If no charge is made, then it is likely that centres will over-use "free" resources from elsewhere in the organisation. The development of responsibility ...

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