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darkfire12 darkfire12
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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
Manager is responsible for revenues and costs
Payroll department
Customer service department
Independently-operated division with sole decision-making authority for all areas
Computer department in Best-Buy
ROI is used to evaluate unit managers
Children's department in retail store
Locally-owned bakery
Unit's overall profit is used to evaluate unit manager
Textbook 

Managerial Accounting


Edition: 4th
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billbyebillbye
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A month ago
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CostProfitInvestment
Manager is responsible for revenues and costsX
Payroll departmentX
Customer service departmentX
Independently-operated division with sole decision-making authority for all areasX
Computer department in Best-BuyX
ROI is used to evaluate unit managersX
Children's department in retail storeX
Locally-owned bakeryX
Unit's overall profit is used to evaluate unit managerX


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darkfire12 Author
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A month ago
Smart ... Thanks!
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