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In a decentralized organization, upper managers need a way to evaluate the performance of unit ...

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.

	Cost	Profit	Investment
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

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Managerial Accounting

Edition: 4^th

Author: Davis

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