The primary difference between profit centers and cost centers is that19Multiple CholceSkippedAskProfit centers are evaluated usIng retuurn on Investment criterla.Cost centers Incur costs.Profit centers provide services to other.centers In the organization.Profit centerS generate revenue.

Profit center is an organization department which aims at profit ascertinment and it increases…

The primary difference between profit centers and cost centers is that Multiple Cholce Profit centers are evaluated using return on Investment criterla. Cost centers Incur costs. Profit centers provide services to other centers In the organization. Profit centerS generate revenue

The primary difference between profit centers and cost centers is that Multiple Cholce Profit centers are evaluated using return on Investment criterla. Cost centers Incur costs. Profit centers provide services to other centers In the organization. Profit centerS generate revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A segment of a business responsible for both revenues and expenses would be called: Multiple Choice a cost center. a profit center. residual income. an investment center.
Discuss how using the rate of return on investment (ROI), as an evaluation tool, helps facilitate comparabilitybetween the various departments or divisions of a business?
Jalancu Juviai u The following are a number of measures associated with the Balanced Scorecard. Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. a. Number of new customers b. Percentage of customer complaints resolved with one contact C. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs Consumer satisfaction (from surveys) Cycle time for solving a customer problem Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products 2. Select an additional measure that would be appropriate for each of the four perspectives. Contribution margin by product ▾ Number of complaints Number of accidents per month Hours of continuing education provided per month g. h. i. Financial Customer Customer Internal business process Financial Financial Learning and growth Learning and growth…
Please highlight a key flaw in utilizing income from operations as a performance indicator for investment centers.
Cost-volume-profit (CVP) analysis for revenue planning determines: The desired profit level of a firm. Both revenue maximization and cost minimization. The costs associated with a certain level of revenue. The max amount of revenue a firm can receive. The revenue required to achieve a desired profit level.
Allocating costs for joint products can be done by: a. Sales Value Approach b. Contribution Margin Approach C. All Approaches are correct. d. Comparative Income Approach
For each of the following, select its best description. A. Incurs costs without directly yielding revenues. B. Costs that a manager has the ability to affect. C. Incurs costs and also generates revenues. D. Holds manager responsible for revenues, costs and major investing decisions. E. Lists actual costs a manager is responsible for and their budgeted amounts. F. Unit managers make decisions and top management then evaluates the performance of unit managers. 1. Decentralized organization 2. Controllable costs 3. Responsibility accounting performance report 4. Profit center 5. Investment center 6. Cost center
Referring to the dimensions and applicable Return on Investment aspects (ROI) listed below: Provide a simple description of how the concepts and principles would apply in a practical work environment to improve work results,1. Financial impact2. Human development impact3. Innovation output4. Technology alignment5. Alignment with company strategy
Many organizations use transfer pricing when transferring products between different divisions of the same organisation. Critically discuss the advantages and disadvantages of the method: Full cost transfer prices. Note: Define, explain gives examples and advantages and disadvantages
Please describe a significant disadvantage of utilizing income from operations as a performance indicator for investment centers.
Please explain a major shortcoming of using income from operations as a performance measure for investment centers.