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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
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

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Managerial Accounting

Edition: 4^th

Author: Davis

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More solutions for this book are available here

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