Analyze revenues in profit and investment centers


Response to the following questions:

1. If a profit center has a net loss, does that always mean it is not making a contribution to the company as a whole?

2. What are the variances used to analyze revenues in profit and investment centers?

3. What is the major disadvantage of using ROI to evaluate the performance of investment centers?

If possible, please give examples to better understand your answers.

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Cost Accounting: Analyze revenues in profit and investment centers
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