Distinguish between a cost center a profit center and an


1. What is meant by the term decentralization?

2. What benefits result from decentralization?

3. Distinguish between a cost center, a profit center, and an investment center.

4. What is meant by the terms margin and turnover in ROI calculations?

5. What is meant by residual income?

6. In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: Distinguish between a cost center a profit center and an
Reference No:- TGS01186987

Now Priced at $30 (50% Discount)

Recommended (95%)

Rated (4.7/5)