Carfax provides various services to supply vehicle reports to consumers. Carfax is subsidiary of R.L Polk & Company. Assume that Carfax have decided to renovate its headquarter building for next two years. Carfax expects that the building maintenance costs and the service costs will rise as a result. Carfax reports their financial performance to the parent company. What type of responsibility center is Carfax? Profit center Cost center Child center Investment center
1) Carfax provides various services to supply vehicle reports to consumers. Carfax is subsidiary of R.L Polk & Company. Assume that Carfax have decided to renovate its headquarter building for next two years. Carfax expects that the building maintenance costs and the service costs will rise as a result. Carfax reports their financial performance to the parent company. What type of responsibility center is Carfax?
Profit center
Cost center
Child center
Investment center
2) Which of the following operating performance measure represents the sales earned for every dollar in investment?
Residual income
Asset turnover
Profit margin
3) Which of the following is a capital expenditure?
None of the above
Inspection costs to assure the quality of products.
Purchase of inventory
Accelerated
Purchase of factory equipment.
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