Which of the following best describes the how Investment Centers are evaluated. Investment Centers compare costs to budgeted amounts; Cost and Profit Centers use Return on Investment (ROI) and Residual Income (RI). Cost and Profit Centers compare costs to budgeted amounts; Investment Centers use Return on Investment (ROI) and Residual Income (RI). Cost, Profit and Invesment Centers compare costs to budgeted amounts. Cost, Profit and Investment Centers use Return on Investment (ROI) and Residual Income (RI).

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
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Problem 13MC: A responsibility center structure that considers investments made by the operating segments by using...
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Which of the following best describes the how Investment Centers are evaluated.
Investment Centers compare costs to budgeted amounts; Cost and Profit Centers use Return on
Investment (ROI) and Residual Income (RI).
Cost and Profit Centers compare costs to budgeted amounts; Investment Centers use Return on
Investment (ROI) and Residual Income (RI).
Cost, Profit and Invesment Centers compare costs to budgeted amounts.
Cost, Profit and Investment Centers use Return on Investment (ROI) and Residual Income (RI).
Transcribed Image Text:Which of the following best describes the how Investment Centers are evaluated. Investment Centers compare costs to budgeted amounts; Cost and Profit Centers use Return on Investment (ROI) and Residual Income (RI). Cost and Profit Centers compare costs to budgeted amounts; Investment Centers use Return on Investment (ROI) and Residual Income (RI). Cost, Profit and Invesment Centers compare costs to budgeted amounts. Cost, Profit and Investment Centers use Return on Investment (ROI) and Residual Income (RI).
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