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jwalker824 jwalker824
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In a decentralized organization, upper managers need a way to evaluate the performance of unit managers. Based on factors under the unit manager's control, organizational units are categorized as cost centers, profit centers, or investment centers. Classify each of the following centers by placing an "X" in the appropriate column.

CostProfitInvestment
Accounting department
North division with decision-making authority for all areas
Generally uses ROI or residual to evaluate unit managers
Children's department in retail store
Customer service department
Textbook 
Managerial Accounting

Managerial Accounting


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rpascuarpascua
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CostProfitInvestment
Accounting departmentX
North division with decision-making authority for all areasX
Generally uses ROI or residual to evaluate unit managersX
Children's department in retail storeX
Customer service departmentX


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jwalker824 Author
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7 months ago
Smart ... Thanks!
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